In response to inquiries, the following statement was issued today by
CommScope, Inc., NextLevel Systems, Inc., and General Semiconductor, Inc.
On July 28, 1997, General Instrument Corporation completed a strategic
restructuring which resulted in the emergence of three new publicly
traded companies: CommScope, Inc. (NYSE: CTV), NextLevel Systems, Inc.
(NYSE: NLV) and General Semiconductor, Inc. (NYSE: SEM). Accordingly,
General Instrument shareholders of record on July 25, 1997 received the
following shares in a tax-free distribution: one share of NextLevel
Systems, one third (1/3) share of CommScope and one quarter (1/4) share
of General Semiconductor for each share of General Instrument they owned.
In order to determine the cost basis of the new shares, General
Instrument shareholders must allocate the original cost basis of their
General Instrument shares among their new shares of NextLevel Systems,
CommScope and General Semiconductor, based on the fair market values of
those shares on the distribution date.
There is no specific authority as to how the fair market value of the
NextLevel Systems, CommScope and General Semiconductor shares should be
determined. One possible approach is to determine the fair market value
of the NextLevel Systems, CommScope and General Semiconductor shares
based on the opening share prices on July 28, 1997, the first day of
"regular way" trading. General instrument shareholders adopting this
approach would allocate the original cost basis of their General
Instrument shares as follows:
Alternatively, other methods could be used to measure fair market value
on the distribution date, such as the closing share price on the first
day of "regular way" trading, the average of the closing share process
during an initial "regular way" trading period, or the average of the
opening and closing share prices on the first full day of "regular way"
The foregoing information is provided solely for the purpose of
allocating the cost basis of the shares for tax purposes, and General
Instrument shareholders are urged to consult their tax advisors with
regard to the most appropriate cost basis allocation for their specific
NextLevel Systems, Inc. is a leading worldwide supplier of systems and
components for high-performance communications networks delivering
video, voice and Intenet/data services. Created in the three-way split
of General Instrument Corporation, NextLevel Systems comprises three
businesses that are leaders in distinct global growth markets: the
Broadband Networks Group, based in Hatboro, Pa.; the Satellite Data
Networks Group, based in San Diego, Calif.; and Next Level
Communications, based in Rohnert Park, Calif. NextLevel Systems,
headquartered in Chicago, posted revenues of $1.8 billion in 1996 and
employs more than 8,300 people worldwide.
CommScope, Inc., is the world's largest manufacturer of coaxial cable,
producing more than 50 percent of the coaxial cable used by domestic
cable television operators, and is a leading supplier of
high-performance electronic cables for LAN and other applications.
General Semiconductor, Inc. is a market leader in the discrete segment
of the semiconductor industry, with manufacturing facilities in China,
Ireland, Taiwan and the United States. The company also has a strong
sales presence in every part of the globe. It provides customers around
the world with a broad range of rectifiers and transient voltage
suppressor devices. Its customers are leading manufacturers of consumer
electronics, lighting, telecommunications equipment, computers and
automobiles and automobile after market products.
Visit the NextLevel Systems Web site at www.nlvl.com
Visit the CommScope Web site at www.commscope.com
Visit the General Semiconductor Web site at www.gensemi.com
"Safe Harbor" Statement under the Private Securities Litigation Reform
Act of 1995: Statements in this press release regarding CommScope's
business which are not historical facts are "forward-looking statements"
that involve risks and uncertainties. For a discussion of such risks and
uncertainties, which could cause actual results to differ from those
contained in the forward-looking statements, see "Risk Factors" in the
Company's Annual Report or Form 10-K for the most recently ended fiscal