LSI Corporation announced that it will eliminate approximately 900 positions or about 13 percent of its non-production workforce across all business and functional areas on a global basis. The restructuring is a result of a portfolio review that LSI has been conducting under a three-phase business acceleration plan adopted following its merger with Agere Systems on April 2007. Related to this ongoing review, LSI also announced today a definitive agreement with Magnum Semiconductor, in which they will acquire the LSI consumer products business for an undisclosed amount. Magnum Semiconductor is a provider of chips, software and reference platforms for recording, viewing and managing audio/video content. It is a privately held corporation backed by August Capital, KTB Ventures, Investcorp Technology Partners, Investor Growth Capital, and WK Technology Fund with headquarters in Milpitas, California, and sales and engineering offices in Korea, Taiwan, Japan and China.

These initiatives are expected to reduce LSI Non-GAAP operating expenses to between $255 million and $265 million in the third quarter and to between $245 million and $255 million in the fourth quarter of 2007. The corresponding GAAP** operating expenses are expected to be between $290 million and $310 million for the third quarter of 2007 and between $275 million and $295 million for the fourth quarter of 2007.