Genesis Microchip To Merge With Paradise Electronics

Genesis Microchip Inc. has signed a definitive agreement to merge with privately held Paradise Electronics, Inc. of San Jose, CA.

Under the terms of the merger, 4.5 million shares of Genesis Microchip common stock will be exchanged for all outstanding shares and options of Paradise Electronics. The merger is expected to be accounted for as a pooling of interests and to qualify as a tax-free reorganization. The transaction has been approved by the board of directors of each company and its completion is subject to customary conditions, including approval by stockholders of Paradise Electronics and Genesis Microchip. The merger is expected to close in the fourth quarter of Genesis Microchip's fiscal 1999.

Under terms of the agreement, Alexander S. Lushtak, chairman of Paradise Electronics, and another Paradise board members will join the Genesis board of directors.

Founded in 1996, Paradise Electronics designs and manufactures highly integrated mixed-mode integrated circuits for the flat panel monitor market. Paradise president Jeff Diamond will serve as Genesis Microchip's Executive Vice President.

Genesis designs, manufactures and markets the ImEngine line of highly integrated semiconductors for a variety of imaging and digital display applications. The chips can be found in flat panel monitors from Acer, Apple Computer, Dell, Fujitsu Ltd., IBM, LG Electronics, Philips, Samsung Electronics, and Sony Corp., and digital projectors from Hitachi, Ltd., In Focus Systems, Sharp Corp., and Texas Instruments.