Siliconix to buy fab in Germany

Siliconix incorporated, an 80.4% owned subsidiary of Vishay Intertechnology, Inc., has acquired Vishay's former wholly-owned subsidiary, Vishay Semiconductor Itzehoe GmbH (VSIG). The purchase price of EUR7.5 million, which includes all assets and liabilities, was based on an independent appraisal performed on behalf of the Board of Directors of Siliconix, who approved the transaction. Siliconix also announced that it plans to establish 8-inch wafer production capability at the Itzehoe facility. VSIG operates a Class 1 wafer fabrication facility in Itzehoe, Germany, under an agreement with Fraunhofer Gesellschaft. Vishay acquired its 80.4% interest in Siliconix and its 100% interest in VSIG concurrently, as part of the 1998 acquisition of the TEMIC Semiconductor Division of Daimler-Benz. Siliconix had a subcontracting agreement with VSIG. In accordance with generally accepted accounting principles regarding transfers of assets between companies under common control, Siliconix will record the assets acquired and liabilities assumed at Vishay's net book value. Also in accordance with accounting principles for transfers of assets between companies under common control, the audited consolidated financial statements of Siliconix, which are expected to be issued in March 2005, will present the combined activities of Siliconix and VSIG (renamed "Siliconix Itzehoe GmbH") for all periods presented. The attached tables provide unaudited consolidated historical financial data for Siliconix and VSIG. The transaction will not have any impact on the consolidated results of Vishay.