Forstmann Little to Conclude Eight Year Investment

27 August 1998

Forstmann Little to Conclude Its Eight Year Investment in General Semiconductor, Inc.; Distribution of Shares Expected

    MELVILLE, NY--August 26, 1998--General Semiconductor, Inc. announced today that, at the request of Forstmann Little & Co., it has filed a shelf registration statement on Form S-3 with the Securities and Exchange Commission which, when effective, will enable Forstmann Little to distribute to its general and limited partners approximately 5.4 million registered shares of General Semiconductor Common Stock. The shares represent approximately 14.7% of General Semiconductor's outstanding common stock.
    Registration statements were also filed today to enable Forstmann Little to simultaneously distribute or sell its shareholdings in General Instrument Corporation and CommScope, Inc. which became separate public companies as a result of the three-way split-up of the former General Instrument Corporation in July 1997.
    Forstmann Little acquired General Instrument, General Semiconductor's former parent company, in August 1990. Forstmann Little reduced its position in General Instrument through an initial public offering in June 1992 and subsequently pared its stake further through secondary offerings in March 1993, September 1993 and April 1995. The enterprise value of General Instrument, CommScope and General Semiconductor, on a combined basis, has increased from $1.5 billion in August 1990 to approximately $6 billion today. "General Semiconductor, along with General Instrument and CommScope, has been an outstanding investment for our firm, and we are confident in the future of General Semiconductor and its sister companies," said senior partner Theodore J. Forstmann. "This distribution now reflects our belief that, after eight years, our limited partners should be free to make their own investment decisions concerning the rest of their shareholdings in the three companies," he added.
    "We appreciate the many contributions that Forstmann Little and its partners have made to the Company's success and its positioning in the discrete semiconductor business," said Ronald A. Ostertag, Chairman and Chief Executive Officer of General Semiconductor.
    General Semiconductor, Inc. is a market leader in the discrete segment of the semiconductor industry with manufacturing facilities in China, France, Germany, Ireland, Taiwan and the United States. The Company provides customers with a broad array of power rectifiers, transient voltage suppressors, small signal transistors and diodes. Its customers include companies around the globe which manufacture consumer electronics, lighting, telecommunications equipment, computers, automotive and automotive aftermarket products.
    Founded in 1978, Forstmann Little is a private investment firm that has invested over $13 billion in 23 acquisitions, including Gulfstream Aerospace, General Instrument, Ziff-Davis Publishing and Community Health Systems. The firm currently has approximately $4 billion in committed capital for future investments.

Registration statements relating to these securities have been filed with the Securities and Exchange Commission but have not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.