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Broadcom Raises All-Cash Tender Offer for Emulex to $11.00 Per Share

IRVINE, Calif., June 29 /PRNewswire-FirstCall/ -- Broadcom Corporation (NASDAQ:BRCM) today announced that it raised its tender offer for all of the currently outstanding shares of common stock (including the associated preferred stock purchase rights) of Emulex Corporation (NYSE:ELX) from $9.25 to $11.00 per share in cash, representing a total equity value of approximately $912 million. As required by law, Broadcom will extend its tender offer for an additional 10 business days, until midnight New York City time, July 14, 2009.

This is the best offer Broadcom intends to make, reflecting Broadcom's assessment of the publicly available information on Emulex and the value Broadcom anticipates to itself from an expedited transaction. The offer represents a premium of 66% to Emulex's closing stock price on April 20, 2009, the day before Broadcom announced its initial offer; of 93% to the average closing price for the 30 trading days before Broadcom's initial offer; of approximately 149% to Enterprise Value (see Note 1) on the day before Broadcom's initial offer; of 69% to the analysts' median 12-month price target for Emulex on the day before Broadcom's initial offer. Broadcom recognizes that, in the absence of its offer, Emulex's share price would have continued to fluctuate in the two months since Broadcom's initial offer. Had the Emulex stock traded in line with the stock of its closest peer, QLogic Corp. (up 7.6% since April 20, 2009), it would be $7.11 today. Broadcom's revised offer represents a premium to this implied current share price of 55%.

Scott A. McGregor, President and Chief Executive Officer of Broadcom, today sent the following letter to Emulex's Board of Directors outlining Broadcom's desire to complete the transaction on a friendly, reasonable and expedited basis:

  June 29, 2009

  The Board of Directors of Emulex Corporation
  c/o Paul F. Folino
  Executive Chairman of the Board of Directors
  Emulex Corporation
  3333 Susan Street
  Costa Mesa, CA 92626

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