Mindspeed Acquires IPG Communications

Accomplished Mobile Industry Development Team Enhances Mindspeed’s Award-Winning Transcede Baseband Processor Group

NEWPORT BEACH, Calif.--(BUSINESS WIRE)--Mindspeed Technologies, Inc. (NASDAQ: MSPD), a leading supplier of semiconductor solutions for network infrastructure applications, today announced that it has acquired substantially all of the assets of privately held IPG Communications, Inc. of San Diego, CA.

“The team at IPG has established a strong reputation for exceptional communications systems design, software-defined radio (SDR) expertise and dual-mode wireless development”

IPG specialized in advanced signal processing technologies for wideband code division multiple access (W-CDMA) 3GPP standard release 8, which deliver significant cost and power advantages. In addition, IPG designed a dual-mode turbo decoder which combines W-CDMA and long-term evolution (LTE) standards, greatly reducing the memory and logic complexity for the system-on-chip (SoC) as compared with standard decoders.

"The team at IPG has established a strong reputation for exceptional communications systems design, software-defined radio (SDR) expertise and dual-mode wireless development,” said Thomas Medrek, Mindspeed’s senior vice president and general manager, communications convergence processing. “The opportunity to add this highly-regarded team to our own 3G and LTE wireless baseband development efforts will enhance our position in the mobile infrastructure sector as we continue to win next-generation base station designs around the world.”

“This is an exciting time to be joining Mindspeed and contributing to the expansion of the Transcede® family of wireless baseband processors,” said Yuan Li, co-founder and chief executive officer of IPG. “Mindspeed has established an industry benchmark with the Transcede 4000 single-chip solution for LTE picocells, and we look forward to joining their world class development team and participating in the design of the next generation of base station processors to serve tomorrow’s heterogeneous 3G and 4G networks.”

Financial terms of the transaction are undisclosed and the company expects the deal to be immaterial to its fiscal third quarter 2011 earnings per share (EPS), as well as its full fiscal year 2011 EPS.

About Mindspeed Technologies

Mindspeed Technologies (NASDAQ: MSPD) is a leading provider of network infrastructure semiconductor solutions to the communications industry. The company’s low-power system-on-chip (SoC) products are helping to drive video, voice and data applications in worldwide fiber-optic networks and enable advanced processing for 3G and long term evolution (LTE) mobile networks. The company’s high-performance analog products are used in a variety of optical, enterprise, industrial and video transport systems. Mindspeed’s products are sold to original equipment manufacturers (OEMs) around the globe.

To learn more, please visit www.mindspeed.com. Company news and updates are also posted at www.twitter.com/mindspeed.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements include statements regarding the company's expectations, goals or intentions, including, but not limited to: product features and their benefits; the strengths of the IPG team; IPG’s technology; the company’s development team; the effect of the transaction on the company’s earnings per share; and the company’s position in the mobile infrastructure sector. These forward-looking statements are based on management's current expectations, estimates, forecasts and projections about the company and are subject to risks and uncertainties that could cause actual results and events to differ materially from those stated in the forward-looking statements. These risks and uncertainties include, but are not limited to: fluctuations in our operating results and future operating losses; constraints in the supply of wafers and other product components from our third-party manufacturers; worldwide political and economic uncertainties and specific conditions in the markets we address; fluctuations in the price of our common stock; loss of or diminished demand from one or more key customers or distributors; successful development and introduction of new products; cash requirements and terms and availability of financing; our ability to attract and retain qualified personnel; doing business internationally and our ability to successfully and cost effectively establish and manage operations in foreign jurisdictions; the expense of and our ability to defend our intellectual property against infringement claims by others; pricing pressures and other competitive factors; lengthy sales cycles; order and shipment uncertainty; our ability to obtain design wins and develop revenues from them; product defects and bugs; business acquisitions and investments; and our ability to utilize our net operating loss carryforwards and certain other tax attributes. Risks and uncertainties that could cause the company's actual results to differ from those set forth in any forward-looking statement are discussed in more detail under "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the company's Quarterly Report on Form 10-Q for the quarter ended April 1, 2011, as well as similar disclosures in the company's subsequent SEC filings. Forward-looking statements contained in this press release are made only as of the date hereof, and the company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.