Weitek Corp – ‘8-K’ for 12/11/96 – EX-99.1

As of:  Thursday, 12/19/96   ·   For:  12/11/96   ·   Accession #:  891618-96-3122   ·   File #:  0-17191

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Current Report   —   Form 8-K
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 8-K         Current Report                                         4     11K 
 2: EX-99.1     Text of Press Release Dated December 11, 1996          1      7K 

EX-99.1   —   Text of Press Release Dated December 11, 1996

EX-99.1
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                                                                    Exhibit 99.1

WEITEK ANNOUNCES AGREEMENT
 WITH ROCKWELL SEMICONDUCTOR SYSTEMS

  San Jose, California, December 11, 1996--Weitek Corporation (OTC
BULLETIN BOARD: WWTK) today announced the signing of an asset purchase agreement
with Rockwell Semiconductor Systems. Pursuant to the agreement, Rockwell will   
pay approximately $3 million to acquire certain Weitek assets and a nonexclusive
license to certain Weitek technology. The purchase price is subject to          
adjustment based on a number of factors, including Weitek's ability to transfer 
certain assets. Rockwell has also extended employment offers to approximately 20
engineers and other employees of Weitek. In connection with the agreement,      
Weitek has made a voluntary filing today under Chapter 11 of the U.S. Bankruptcy
Code. The asset transfer is subject to prior approval of the Bankruptcy Court.  
Until the Bankruptcy Court approves the asset transfer, Weitek will provide     
certain contract engineering services to Rockwell. Weitek is expected to seek   
interim permission from the Bankruptcy Court to permit Rockwell to use Weitek's 
San Jose, California design facilities and hire the Weitek engineers and other  
employees sought by Rockwell.                                                   

 Richard Bohnet, President and Chief Executive Officer of Weitek
commented that "the agreement with Rockwell is the culmination of a multi-year  
effort to find a strategic buyer for Weitek's assets. We are very pleased with  
the Rockwell agreement. We will continue to seek buyers for the Weitek assets   
not being purchased by Rockwell, including Weitek's intellectual property       
portfolio. We believe that the Rockwell agreement, together with an orderly     
disposition of other assets, provides Weitek with the best opportunity to       
satisfy its obligations to creditors and return some assets to shareholders."   
Weitek, which has sustained substantial operating losses during the past several
years, will attempt to sell those assets not being acquired by Rockwell through 
the bankruptcy proceeding, and then expects to wind up its affairs. Creditors   
and shareholders of Weitek will receive additional information regarding the    
bankruptcy proceedings by mail.                                                 

   This press release contains forward looking statements within the
meaning of the Securities Exchange Act of 1934, as amended. Actual results may  
differ materially from those described herein. Factors which may cause such     
results to differ include the following: (i) the agreement and other            
arrangements with Rockwell are subject to approval of the Bankruptcy Court, and 
there can be no assurance that the agreement and other arrangements will be     
approved by such court on the terms agreed by the parties or on any other terms;
(ii) the agreement with Rockwell contains customary conditions to closing which,
if not satisfied, would permit Rockwell and Weitek to terminate the agreement   
and other arrangements; (iii) there can be no assurance that Weitek will be     
successful in locating buyers for any remaining assets; and (iv) while Weitek   
expects to have assets available for distribution to shareholders after         
satisfying all senior claims, there can be no assurance as to the amount, if    
any, which will be available for distribution to Weitek shareholders after      
remaining assets are disposed of and senior claims are satisfied.               

Dates Referenced Herein

This ‘8-K’ Filing		Date		Other Filings
Filed on:		12/19/96		None on these Dates
For Period End:		12/11/96
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