CHANDLER, Ariz., April 28 -- Amkor Technology, Inc. (Nasdaq: AMKR) said today that it has reached settlement with Fujitsu Limited with respect to pending litigation ("the Fujitsu case") involving allegedly defective mold compound. As part of a broader settlement agreement reached among Fujitsu, Cirrus Logic Inc. and Sumitomo Bakelite Co., Amkor has agreed to pay Fujitsu $40 million in consideration of a release from all claims related to this case. In connection with this settlement, Amkor will record a charge of $40 million (with no associated tax benefit) or ($0.22) per share, in the Consolidated Statement of Operations for the three months ended March 31, 2005.
Amkor previously announced resolution of cases involving Philips and Seagate. Amkor will continue to incur legal expenses in defense of the pending mold compound cases with Maxim and Fairchild. While these cases are in the early stages of discovery, management is confident based on current information that these two pending cases, which are more fully disclosed in Amkor's December 31, 2004 Form 10-K, involve substantially smaller damage claims against Amkor than the Fujitsu case.
"Our decision to enter into the Fujitsu settlement was based on a careful economic evaluation of the circumstances particular to this case, including the size of the damage claims and the potential outcome of a jury trial," said John Boruch, Amkor's president and chief operating officer.
Amkor Technology, Inc. is a leading provider of contract semiconductor assembly and test services. The company offers semiconductor companies and electronics OEMs a complete set of microelectronic design and manufacturing services. More information on Amkor is available from the company's SEC filings and on Amkor's web site: www.amkor.com.
Contact: Amkor Technology Jeffrey Luth VP Corporate Communications (480) 821-2408 Ext. 5130 email@example.com