Oak Technology Confirms Receipt Of Buyout Proposal

Oak Technology Inc. (Sunnyvale, CA), announced on Nov. 18. 1998, that it has received a proposal from David Tsang, chairman of the board and CEO, to acquire all outstanding common stock of the company for $4.50 per share in cash. Oak Technology is a provider of high-performance semiconductors for the optical-storage, consumer-electronics, and digital office-equipment markets.

Tsang has formed an investment vehicle named Gold Acquisition Group to pursue his proposal. He has also enlisted the participation of Advanced Semiconductor Engineering Corp. and H&Q Asia Pacific, whose chairman, Ta-Lin Hsu, is a member of Oak Technology's board of directors. The proposal will be kept open until 5 p.m. PST on Dec. 14, 1998.

The company's board of directors will discuss appointing a special committee of independent directors to review Tsang's proposal. Richard Black, president of Oak Technology, stated that other than Tsang and Hsu, the company is not aware of any other member of its board of directors or management participating in the proposal.

Founded in 1987, Oak Technology designs, develops, and markets high-performance semiconductors and related software to original equipment manufacturers (OEMs) worldwide. Oak Technology has subsidiaries in Japan (Oak Technology K.K.); Taiwan (Oak Technology, Taiwan); Andover, MA. (Pixel Magic Inc.); Bristol, U.K. (Oak Technology Ltd.); and Munich, Germany (Oak Technology GmbH). The company completed its initial public offering in February 1995.

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