Rockwell Spins Off Semiconductor Systems Business

Rockwell International Corp. (Costa Mesa, CA) announced on Jan. 1, 1999 that it has spun off its semiconductor systems business to shareowners. The business is currently known as Conexant Systems, Inc. (Newport Beach, CA).

Conexant is the world's largest company focused exclusively on providing semiconductor products for communications electronics. The $1.2 billion business has more than 30 years of experience in developing analog modem technology. The company leverages its expertise in mixed-signal processing and communications technology to deliver integrated systems and semiconductor products for a broad range of communications applications.

The Rockwell board of directors approved the spin-off on Dec. 31, 1998. Shareholders of record at the close of business on Dec. 11, 1998, will receive one share of Conexant for every two shares of Rockwell stock held at that time.

"Our continuing businesses of automation, avionics, communications and electronic commerce have a strong track record of success," says Don Davis, Rockwell's chairman and CEO. "Over the past five years, the combined operating earnings of these businesses, coupled with our share repurchases, have produced compound annual earnings per share growth of 24%."

Rockwell is a $7 billion electronic controls and communications company with global leadership market positions in industrial automation, avionics, communications and electronic commerce. The company employs about 40,000 people at more than 450 locations in 40 countries. Rockwell is organized into two primary businesses—automation and avionics, and communications. These businesses include Rockwell Collins and Rockwell electronic commerce.

For more information, call 949-221-4600.