Silicon Motion Technology, a fabless semiconductor company that develops semiconductor solutions for the multimedia consumer electronics market, has entered into an agreement to acquire Future Communications (FCI). FCI is a designer of radio frequency integrated circuits (RFICs) for mobile television and wireless communications based in Seoul, South Korea. Under the terms of the transaction, Silicon Motion will acquire substantially all of the outstanding common shares of FCI for a total purchase price of US$90 million, which will include a combination of cash, Silicon Motion ordinary shares and options to purchase Silicon Motion's ordinary shares, subject to an adjustment in certain circumstances. In addition, Silicon Motion has agreed to pay former FCI shareholders up to an additional US$12 million in cash upon the achievement of certain operating and financial milestones in 2007. Among the milestones, in order to be eligible for additional payments, the FCI business is required to generate US$33 million in revenue in 2007.