MERGER AND ACQUISITIONADVANTAGE It provides a business with a potentially bigger

market share and it opens the business up to a more diversified market.

Makes a business bigger, increase it’s production and gives more financial strength to become stronger against the competitor on the same market.

The most common reason for firms to enter into merger and acquisition is to merge their power and control over market.

leads in over all cost reduction giving a competitive advantage that is feasible as a result of raised buying power and longer production run.

DISADVANTAGEMerger may result to loss of experienced

workers aside from workers in leadership positions.

Merging two firms that are doing similar activities may mean duplication and over capability within the company that may need retrenchment.

Merger can reduce competition and give new firm monopoly power with less competition and greater market share the new firm can usually increase prices for consumers.

BROADCOM AND MOBILINK

TELECOM

MOBILINK TELECOM A Leading Provider of Chipsets and Manufacturing-Ready Reference Designs for Cellular Phones, Wireless PDAs and Cellular Modem Cards.

BROADCOM CORPORATION The leading provider of intergrated circuits.

REASON FOR ACQUISITION Broadcom to Provide Complete Solutions for

Wireless Wide, Local and Personal Area network

Product Extension Mergers

A product extension merger takes place between two business organizations that deal in products that are related to each other and operate in the same market.

The product extension merger allows the merging companies to group together their products and get access to a bigger set of consumers. This ensures that they earn higher profits.

TERMS OF ACQUISITIONS

In connection with the acquisition, Broadcom will issue approximately 5.6 million shares of its Class A common stock in exchange for all outstanding shares of Mobilink capital stock and upon exercise of outstanding employee stock options and other rights of Mobilink.

Up to approximately 2.0 million additional shares of Broadcom Class A common stock will be reserved for future issuance to the shareholders and option holders of Mobilink upon satisfaction of certain performance goals.

Acquisition Marks Broadcom's Entry into the $11 Billion-Plus Cellular

MOBILINK TELECOM• Mobilink's products are currently in production and being

used by major manufacturers of devices designed for the Global System for Mobile Communications (GSM), the world's most prevalent mobile phone standard.

Mobilink is completing field-testing and certification of its General Packet Radio Service (GPRS) products, targeted to a market that delivers Internet Protocol packet services to over 650 million GSM subscribers.

Mobilink's product offering includes an all-CMOS single-chip baseband processor, protocol stacks, and MMI (Man-Machine Interface) and application software, as well as customized final product designs tailored to its customers' specifications.

BROADCOM Broadcom Corporation is the leading

provider of highly integrated silicon solutions that enable broadband communications and networking of voice, video and data services.Using proprietary technologies and advanced

design methodologies, Broadcom designs, de-velops and supplies complete system-on-a-chip solutions and related hardware and software applications for every major

broadband communications market.

Broadcom has already introduced a number of leading products enabling 802.11b and Bluetooth networks.

The addition of Mobilink's GSM/GPRS integrated circuits, software and design capabilities will further enable Broadcom to support the convergence of wireless networks, allowing delivery of high bandwidth content to users virtually anytime, anywhere, and driving the transformation of the handset from a voice-only device into a multimedia gateway.

With its broad product portfolio and access to every major broadband communications market, Broadcom is an ideal complement for Mobilink's growing reach into the mobile segment.

Broadcom's acquisition of Mobilink is a significant validation of the technology, products and team in which Ericsson first invested in 2001.

Important factors that may cause such a difference for Broadcom in connection with its acquisition of Mobilink Telecom, Inc. include, but are not limited to,

the risks inherent in acquisitions of technologies and businesses, including the timing and successful completion of technology and product development through volume of production.

Integration issues, costs and unanticipated expenditures, changing relationships with customers, suppliers and strategic partners, potential contractual, intellectual property or employment issues, accounting treatment and charges.

"Broadcom's entry into the cellular chip, de-sign and software markets through the acqui-sition of Mobilink represents an important strategic step for our company, one that will not only allow us to provide wide area roam-ing capability over the digital cellular net-works, but also enhance synergies with our best-in-class products for enterprise 802.11b wireless networks and short range wireless links over Bluetooth(TM) connections,

-Dr. Henry T. Nicholas III, Broadcom's President and CEO.