ARRIS Purchases Digeo in Cash Transaction

Tuesday, September 22nd, 2009 
Digeo logo

Next Step in ARRIS IP Video Evolution; Conference Call Wednesday, September 23, 2009, 8:30 AM EDT

SUWANEE, Ga. — ARRIS Group Inc. (NASDAQ: ARRS) announced today that it has agreed to purchase the assets of Digeo, Inc., including its intellectual property portfolio, for a cash purchase price of approximately $20 million. The Digeo acquisition, along with the recently announced acquisition of EG Technology (EGT), provides ARRIS with substantial technical expertise in video networking and an innovative multimedia services delivery platform. The engineering talent and intellectual property acquired as part of these transactions will be combined with ARRIS’ internal development efforts to accelerate the introduction of next-generation IP-based consumer video products and services. These new products will allow the Company’s customers to cost effectively integrate and distribute new forms of personalized multimedia content throughout the home.

ARRIS will continue to develop and market the current line of Digeo Digital Video Recorder (DVR) products, including Digeo’s Moxi Cable DVR and consumer HD DVR with its Emmy® award winning user interface. Moxi customers will continue to enjoy uninterrupted service and updates.

“Several years ago we laid out a strategy to establish ARRIS as a leader in video networking,” said Bob Stanzione, ARRIS Chairman and CEO. “Our strategy includes both organic development and strategic acquisitions. The Digeo acquisition, along with our acquisition of EGT last month, has enhanced our ability to aggressively pursue end to end video delivery initiatives.”

As a result of the Digeo transaction ARRIS will gain approximately 75 employees located in Kirkland, Washington. The addition of the Digeo engineering team will raise the Company’s research and development investment by approximately $3M per quarter. In addition to a highly talented work force and award-winning products and technology, ARRIS will acquire an extensive intellectual property portfolio in technologies including Digital Video Recording, Home Networking, E-Commerce, and Multimedia.

“As the global leader in broadband technology for the cable industry, ARRIS delivers the market position necessary to take the Moxi vision to the next level,” said Greg Gudorf, Digeo CEO. “ARRIS recognizes the value of adding Digeo’s highly-innovative technology to its portfolio, allowing the Company to integrate the Moxi line of products and services as core to its expansion into the digital home. Further, ARRIS recognizes the value Digeo’s highly-talented people bring to the equation. I am extremely pleased that the Digeo team will continue to drive the evolution of the Moxi platform.”

The transaction is expected to close early in the fourth quarter of 2009.

Conference Call and Webcast

A conference call and webcast with a presentation and discussion of this transaction will be held at 8:30am EDT, September 23, 2009. The conference call will be broadcast live via the Internet. Presentation materials for the call will also be available for viewing at the ARRIS Investor Relations website. Those wishing to participate in the conference call via the telephone may dial-in at 800-510-9691, international 617-614-3453, access code: 25185660. A telephone replay will be available from 11:30 am EDT on September 23, 2009 through midnight, EDT September 30, 2009 by dialing 888-286-8010, international 617-801-6888 access code: 11932132. The conference call replay will also be available via webcast through the ARRIS Investor Relations website.