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California Micro Devices to Save $300,000 Annually by Refinancing Industrial Revenue Bond with Silicon Valley Bank

MILPITAS, Calif., Jan. 26 /PRNewswire-FirstCall/ -- California Micro Devices (Nasdaq: CAMD) today announced that it will save approximately $300,000 of interest expense during fiscal 2005, followed by increased interest savings in subsequent years, as the result of refinancing its industrial revenue bond with a new credit facility from Silicon Valley Bank (Nasdaq: SIVB). The net bond debt of $5.5 million ($6.5 million face value less approximately $1.0 million of restricted cash), which matures in 2018, is being refinanced by Silicon Valley Bank with a five-year fully-amortized term loan. Today, the company drew down its loan from the bank and exercised its option to call the bond, depositing the required funds in escrow to repay the bond on March 1, 2004. Prepayment of the bond will result in the write-off during the fourth quarter of fiscal 2004 of approximately $221,000 of original issuance costs associated with the bond.

"Since we became the corporate bank for California Micro Devices in June 2002, the company has returned to profitable growth by executing its business strategy exceptionally well," said Tom Smith, senior vice president, Silicon Valley Bank. "The significant savings that the company will realize through refinancing its bond reflects astute financial management on its part."

According to Greg Miller, CFO for California Micro Devices, the new credit facility to refinance the bond is an extension of the company's existing Silicon Valley Bank credit facilities. The existing credit facilities comprise $4.0 million working capital and $2.0 million equipment financing lines. He noted that the industrial revenue bond being refinanced was issued in 1988 to finance the company's Tempe, Arizona facility.

About Silicon Valley Bank

Silicon Valley Bank provides diversified financial services to emerging growth and mature companies in the technology, life sciences and private equity markets, as well as the premium wine industry. Through its focus on specialized markets and extensive knowledge of the people and business issues driving them, Silicon Valley Bank provides a level of service and partnership that measurably impacts its clients' success. Founded in 1983 and headquartered in Santa Clara, Calif., the company serves more than 9,500 clients across the country through 27 regional offices. More information on the company can be found at: www.svb.com.

About California Micro Devices Corporation

California Micro Devices Corporation is a leading supplier of application-specific analog semiconductor products for the Mobile, Computing, and Consumer Electronics markets. Key products include application-specific integrated passive (ASIP(TM)) devices and power management ICs. Detailed corporate and product information may be accessed at www.calmicro.com.

All statements contained in this press release that are not historical facts are forward-looking statements which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. They are not guarantees of future performance or events. Rather, they are based on current expectations, estimates, beliefs, assumptions, and goals and objectives and are subject to uncertainties that are difficult to predict. As a result, our actual results may differ materially from the statements made. Often such statements can be identified by their use of words such as will, intends, plans, believes, anticipates, expects, and estimates. Forward-looking statements made in this release include our expectation that the bond will be successfully paid off on March 1, 2004, and that we will repay our term loan according to its terms over the next five years. These forward-looking statements are based upon our assumptions about and assessment of the future, which may or may not prove true, and involve a number of risks and uncertainties including, but not limited to, whether the transactions are accounted for as we anticipate when audited and whether the trustee processes the bond pay-off as promised as well as other risk factors detailed in the company's Form 8K, 10K, and 10Q filings with the Securities and Exchange Commission. Due to these and other risks, the company's future actual results could differ materially from those discussed above. These forward-looking statements speak only as to the date of this release, and, except as required by law, we undertake no obligation to publicly release updates or revisions to these statements whether as a result of new information, future events, or otherwise.

NOTE: ASIP(TM) is a trademark of California Micro Devices. All other trademarks are property of their respective owners.

SOURCE  California Micro Devices
    -0-                             01/26/2004
    /CONTACT:  Greg Miller, Chief Financial Officer of California Micro
Devices, +1-408-934-3144, or gregm@calmicro.com /
    /Web site:  http://www.svb.com /
    /Web site:  http://www.calmicro.com /

CO:  California Micro Devices; Silicon Valley Bank
ST:  California

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