Trident Microsystems will acquire selected assets of the frame rate converter (FRC), demodulator and audio product lines of Micronas' Consumer Division. In connection with the acquisition, Trident will issue 7.0 million common shares to Micronas, which are valued at approximately $10 million, based on the closing price of Trident common stock on Tuesday March 31, 2009. The acquisition broadens Trident's existing product and intellectual property portfolios and augments its technical resources, enabling the company to address a larger portion of the DTV market and to expand its tier one customer base. Trident expects to expand its revenue base and leverage its low cost operations in Asia to reduce its projected near-term operating losses.

The company anticipates that combined net revenue for the quarter ending September 30, 2009 will be approximately $35 million and expects non-GAAP operating loss and cash consumption to improve from its current outlook. Upon completion of the acquisition, Trident expect the total headcount to increase by approximately 150 employees located throughout the world. Following the close of the transaction, Trident will have new design centers in Munich and Freiburg, Germany, as well as Nijmegen, The Netherlands and expects to establish its European headquarters in Munich.