AeANET : Midwest Newsletter January 2008

PCTEL Sells Mobility Solutions Group
Company to Focus on Wireless Technology and Products Three Million Share Buyback Program Announced

CHICAGO, Dec 10, 2007 (BUSINESS WIRE) -- PCTEL, Inc. (NASDAQ: PCTI), a leading provider of wireless solutions, announced today that it had signed a definitive agreement to sell its Mobility Solutions Group (MSG) to Smith Micro Software, Inc. (NASDAQ: SMSI). PCTEL will receive $59.7 million in cash at the close, which is scheduled for January 4, 2008. PCTEL will retain its accounts receivable at the time of close. The transaction is subject to customary closing conditions.

R&D and Manufacturing Capabilities

Cabot Microelectronics� proprietary products are developed through close collaboration with customers by a team of highly skilled research and development professionals. Our company uses a focused, multidisciplinary team approach to new product development. Our experts have both the business acumen and technical skills necessary to develop and commercialize advanced polishing solutions. Over twelve percent of our USA based employees possess a PhD, with skill and knowledge from the fields of particle technology, chemistry, colloidal science, electrochemistry, semiconductor process integration, and polishing applications. Our dynamically focused team structure fosters an environment of innovation that responds to our customers� continuously evolving need for improvement and next generation products.

CMC has manufactured and sold millions of gallons of CMP polishing slurries, which is more than the rest of the CMP slurry industry combined. No one comes close to the breadth and depth of resources we dedicate to research and development, manufacturing and technical support of advanced polishing solutions. This significant commitment of resources translates into reduced risk for customers who seek a partner who has a proven history of successful high-volume manufacturing on a global scale.

While CMC is the market leader in CMP slurries today, we have no intentions of slowing our pace. We view being the market leader not as a place to end, but rather a place to begin.

Worldwide Research and Technology Centers

Cabot Microelectronics� Research and Technology Centers are located in Aurora , Illinois and Geino , Japan . Both technology centers provide applications and product support to customers, and develop new, high-performance products to meet the existing and emerging needs of semiconductor manufacturers. Our facilities are equipped with state-of-the-art metrology and polishing labs. In addition, the tech centers have dedicated chemistry labs for product development and dispersion pilot plants to support process innovation.

History

Cabot Microelectronics was initially formed as a division of Cabot Corporation and became an independent, publicly held company in 2000. Cabot Microelectronics� stock is listed on the Nasdaq� under the symbol CCMP. The worldwide headquarters are located in Aurora , Illinois .

Join the Industry's Leading Committees on Export Controls and Customs

In early December AeA's Customs Committee was briefed on Intellectual Property Rights (IPR) protection and mutual recognition of trade security programs by the U.S. Customs and Border Protection while AeA's Export Controls Committee was updated on pending changes to the U.S. encryption regulations at their respective quarterly meetings. Participation on these committees is free to all AeA members. For more information on how customs and export regulations impact your company or to join either committee, contact Ken Montgomery at ken_montgomery@aeanet.org or 202.682.4433.

At the meeting of the AeA Customs Committee on December 6, William Zarit, Regional Director, East Asia / Pacific, U.S. Commercial Service (USDOC), briefed member company representatives on the foreign commercial services available to U.S. companies, including assistance with import issues in East Asian countries. The group also received an update from Bradd Skinner, Director, C-TPAT / Industry Partnership Programs, U.S. Customs and Border Protection (CBP) on C-TPAT, the World Customs Organization (WCO) Safe Framework of Standards, and security program mutual recognition efforts. David Brener, Chief, IPR Operations Branch, CBP, discussed the enforcement resources and operations available to high-tech companies including the Los Angeles Electronics Trade Office and National IPR Coordination Center in Washington, DC. Speaker presentations and meeting minutes are available for AeA members online.

The AeA Export Controls Committee meeting, held on December 5, heard from Bernie Kritzer, Director, Office of National Security and Technology Transfer Controls, and Randy Pratt, Director, Information Technology Controls Division, Bureau of Industry and Security (BIS), U.S. Department of Commerce. The BIS officials provided attendees with updates on the Validated End User (VEU) program, Deemed Export Advisory Committee (DEAC) recommendations, intra-company license transfer, commerce control list (CCL) review and encryption regulations. Detailed meeting minutes are available for AeA members online.

For additional information on getting involved with AeA International contact Rob Mulligan at rob_mulligan@aeanet.org.

Rob Mulligan (bio)
Senior Vice President International

For more information on the International Issues affecting your company, visit:

2007 Ends with No Congressional Action on U.S. Competitiveness

2007 represented a year of empty promises for high-tech. It appeared to be the year that U.S. political leadership would take America�s declining competitive advantage seriously as bipartisan politics were pushed aside with the passage of the America COMPETES Act. Earlier this year, the COMPETES ACT called for increased spending in government funded research and development and the expansion of science, technology, engineering, and math educational programs. However, in the final days of legislative action this year, Congress failed to increase the budgets at key science agencies. The result is our premier national laboratories, who have produced specific innovations like the Internet, MRIs, and the Doppler Radar to name a few, are forced to reduce operations significantly. Furthermore, many of the promised STEM education programs remain unfunded.

Congress also failed to extend the R&D tax credit, which amounts to an $8 billion tax hike on American businesses. Furthermore, the President and Congress�s failure to reform high-skilled immigration to increase the cap on H-1B visa and Green Card holders has restricted the high-tech community�s ability to hire the best and brightest from around the world. The President and Congress�s inaction represents a failure in keeping high-wage, high-skilled jobs in the United States, and have inflicted damage to America�s innovation infrastructure.

John Palafoutas (bio)
Senior Vice President for Domestic Policy & Congressional Affairs

Can Small Companies Really Impact Washington, DC Politics?

When it comes to working with Washington, my sense is that our smaller companies sometimes think that they do not matter and that DC is only for the big guys. That is simply not true. Our smaller companies bring a different perspective to the various debates in Washington that can in fact be especially compelling and effective. This is especially true when it comes to politically sensitive issues such as corporate finance and high-skilled visa reform, in which legislators do not want to be seen as catering to �Big Business.�

On December 12, AeA Board member Tom Brandt, the CFO of TeleCommunication Systems, testified before the House Small Business Committee on behalf of AeA. The hearing was on Sarbanes-Oxley Section 404, and SEC Chairman Chris Cox was the opening witness. Tom Brandt was extremely effective in telling his company�s story and the reasons why he thinks changes are necessary in Section 404 implementation for smaller companies. Members of Congress kept going back to Tom with questions, and his answers were all persuasive. Members of Congress and other members of the audience were all impressed. After the hearing, another association represented during the hearing sent us a note to say that AeA�s �witness did a superb job,� a sentiment reiterated by a congressional staff member that day.

As the chairman of AeA�s Sarbanes-Oxley Committee, Tom has come to Washington for various meetings with SEC Commissioners, PCAOB Board members, and others, but he had never testified before Congress. Simply thinking about the kind of access AeA members like Tom have had as a result of their membership is remarkable. One might not be surprised to learn that the CFO of a multi-billion dollar company had been meeting with high-level regulators and testifying before Congress, but Tom works for a $125 million company based in Annapolis, MD. He has had the ear of everyone in a position to bring about changes to one of the most significant corporate laws in history, and he has been directly responsible for many of the changes we have seen to date, and the many more we hope to see in the future.

Yes, we would like to see regulators and Congress do more to reduce the burden of Section 404. If such changes are promulgated, it will be because of the efforts of smaller companies like Tom�s.

AeA also believes that the impact of small- and mid-sized companies weighing into the high-skilled visa debate going on in Congress will convince legislators that it is not just a big-company issue. Bringing the best and the brightest into the U.S. to work for American companies does not just benefit these big guys, but it impacts companies of all sizes. In December AeA circulated a letter to our membership and had nearly 100 companies, who were mostly small, sign up to support the industry's efforts to create more H-1B visas and Green Cards. If you want to learn more about getting involved with these efforts, please contact me at john_palafoutas@aeanet.org.

John Palafoutas (bio)
Senior Vice President for Domestic Policy & Congressional Affairs

Tom Brandt, CFO, TeleCommunication Systems, testifies before Congress for AeA (pictured second from right)

Gov. Schwarzenegger Appoints California's First Cabinet-level State CIO from AeA Sponsored Bill

On December 6, Governor Arnold Schwarzenegger announced the appointment of Teresa (Teri) Takai as California's first Cabinet-level Chief Information Officer (CIO). This position was created by a bill sponsored by AeA at the behest of its members long frustrated by their inability to offer IT products and services to the government overseeing the world's sixth largest economy.

This is a significant achievement for California and our member companies. AeA actively pursued this piece of legislation because the high-tech industry believes an empowered State CIO will have the ability to make California less risk averse where buying technology is concerned. Given the sheer size of California, and its tradition of enacting path-breaking legislation, we are very excited to have been the impetus for this milestone accomplishment.

Since 2003, Takai has served as director of the Michigan Department of Information Technology (MDIT), where she also serves as the state's chief information officer. In this position, she has restructured and consolidated Michigan's resources by merging the state's information technology into one centralized department to service 19 agencies and over 1,700 employees. Additionally, during her tenure at the MDIT, Takai has led the state to being ranked number one four years in a row in digital government by the Center for Digital Government.

AeA looks forward to working with Ms. Takai in streamlining California's IT procurements. Her proven track record as Michigan's State CIO speaks for itself.

California's state government, with an annual technology budget of several billion dollars, is one of the largest potential purchasers of technology in the world. AeA members have for years sought a California Chief Information Officer (CIO) with real statutory, enterprise-wide authority to facilitate and promote technology solutions, bring about a unified technology program throughout state agencies, and provide accountability for the direction of technology projects by one of the largest technology purchasers in the world.

AeA pursued this legislation because our members believe an empowered State CIO will provide consistency in technological solutions and procurements. Such a CIO will be able to drive the purchase of the enterprise-wide applications essential for improving government performance, reducing fraud, and leveraging existing programs to better serve the citizens of California, all the while promoting technology as an essential means to almost every public policy end.

Roxanne Gould (bio)
Senior Vice President, California Public and Legislative Affairs

Attend AeA�s Upcoming Government-Industry Executive Interchange on Telework and ID Management

On January 17, Chief Information Officers, program managers, and procurement officials from the federal government will meet with the leaders of the high-tech industry to discuss shared best practices at AeA's offices in Washington, DC, at the quarterly AeA Government-Industry Executive Interchange.

Confirmed Speakers:

Nigel Ballard
Government Marketing Manager
Intel Americas
Casey Coleman
Chief Information Officer
General Services Administration

PCTEL Sells Mobility Solutions Group Company to Focus on Wireless Technology and Products Three Million Share Buyback Program Announced

R&D and Manufacturing Capabilities

Worldwide Research and Technology Centers

History

PCTEL Sells Mobility Solutions Group
Company to Focus on Wireless Technology and Products Three Million Share Buyback Program Announced