BACKGROUND

Exar Corporation is a semiconductor company that designs, develops and markets high performance,high-bandwidth physical interface and access control solutions that facilitate the aggregation and transport of signals in access, metro and wide area networks over the worldwide communications infrastructure. With less than $70 million in revenues and over $300 million in cash, Exar’s strategic vision is to become a leader in system-level mixed-signal connectivity solutions by building a $300 million revenue company in three to five years through strategic acquisitions and organic growth.

After identifying Sipex Corporation as a high potential merger candidate, Exar engaged LRG Advisory in March of 2007 as a financial advisor due to the firm’s existing relationship with Sipex, familiarity with its business and the proposed transaction with Exar.

ADVISORY ASSIGNMENT

As a leading supplier of analog and mixed-signal silicon solutions for the power management, interface and optical storage markets, Sipex represented a strategic partner with whom Exar could execute its vision. The combination of the two companies provided for an opportunity to accelerate growth in revenue and profits by leveraging a broader set of complementary products and technologies across a stronger combined geographical reach, while simultaneously increasing operational efficiency by executing on significant cost synergies.

During the course of several management and board meetings from March to May 2007, LRG Advisory advised the Exar management team and its board on financial due diligence, and assessing the strategic transaction and its related terms.