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TriQuint finishes China test facility, fights lawsuit

TriQuint has completed construction of an assembly and test facility in China, and will contest a class-action lawsuit filed against its Sawtek subsidiary.

TriQuint Semiconductor has completed a 1,100 square meter test facility in Tianjin, People s Republic of China. The facility will be operated by Sawtek Inc., a wholly owned subsidiary of TriQuint, to provide assembly, test, mark, tape and reel support for TriQuint s products that serve the worldwide cell phone market.

TriQuint began construction of the facility in the Tianjin Economic Technological Development Area (TEDA) in November 2002.

The facility will provide shorter time-to-market, local currency support, and after-sales service in support of domestic Chinese manufacturers of communications equipment as well as international OEMs. Additionally, this facility extends TriQuint s strategy to expand its presence in Asia, which already consists of sales and application support offices in Korea, Taiwan and Japan.

Ralph Quinsey, CEO of TriQuint, said, "The opening of our China facility offers our existing Chinese and international OEM customers reduced transaction costs due to our local presence and supply chain management. China is now the largest mobile phone market in the world. Our investment in China will enable us to expand our customer base by offering domestic Chinese handset manufacturers local manufacturing support for key products in both CDMA and GSM markets."

TriQuint contests complaint

A class-action lawsuit has been filed against Sawtek and certain of its executive officers, who are charged with violations of federal securities laws.

The complaint alleges that during the period between January 27, 2000 and May 24, 2001, the defendants misrepresented Sawtek s financial performance by improper "channel stuffing" - inflating revenue by shipping more products than distributors could sell. The defendants also allegedly disseminated false and misleading statements concerning Sawtek s revenue and business prospects despite a widespread downturn in the wireless and telecommunications markets.

On May 23, 2001, the defendants acknowledged that Sawtek s projected results for the quarter ending June 30, 2001, would fall well below previously issued revenue guidance. By the close of trading on the next day, Sawtek s stock price had plunged more than 17 percent from the previous day s close as a result of this news.

However, TriQuint has dismissed the lawsuit. "The complaint is totally without merit," said TriQuint s CFO, Raymond Link. "The company plans to vigorously contest the claim and fully expects to win the case."

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