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News Release from: Rutronik Elektronische Bauelemente
Edited by the Manufacturingtalk Editorial Team on 05 January 2006

General European electronics franchise
awarded

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Rutronik Elektronische Bauelemente and the semiconductor manufacturer Microchip are set to expand their successful 10-year cooperation across Europe.

Rutronik Elektronische Bauelemente and the semiconductor manufacturer Microchip are set to expand their successful 10-year cooperation across Europe On December 5, within the framework of a management meeting of both companies, the partners settled their general European franchise contract, which goes into effect as of 2006

In future, Rutronik will represent Microchip not only in Germany, Austria, Switzerland, Italy, UK, Ireland, Poland, the Czech Republic, Slovakia, Slovenia, Romania and Hungary, but also in Benelux, France, Spain, Sweden, Finland, Denmark, and Norway as a 'Design-in Distributor'.

Microchip meanwhile will shift its focus to local and European distributors with design-in competence, as provided by Rutronik.

The broadband distributor is convincing thanks to its European-wide local presence, FAE competence in application design, and system solutions as well as numerous value added services.

The franchise agreement covers the complete Microchip product range of 8- and 16-bit microcontrollers, high-end analogue products in the fields of thermal management, power management, linear, mixed signal and interface and serial EEPROMs.

Rutronik regards this franchise expansion as a decisive success towards harmonising its Linecard and its wish to offer an extensively identical product range across the entire continent.

As Thomas Rudel, vice president sales and marketing, explained: "Above all, the paradigm shift at Microchip to a European distributor with a design-in focus reinforces our position as a system and solutions provider in the market and consequently with customers.

Not only does our sales network cover all of Europe, but we are also represented in each subsidiary with field application engineers.

We provide individual, local support for customers developing their applications." "With regard to pan-European interests, the strategies of our companies dovetail.

Furthermore, with its technical competence, Rutronik fulfills our premise of pushing the design-in competence of our distribution partners much more into the foreground.

We are expecting this to produce even better consulting and support for customers and consequently additional sales potential with regard to new customers and expanded markets," said Paul Breault, vice president Worldwide Distribution, Microchip.

Through its most recent expansion, Rutronik was able to close the last few gaps in the continent and as a result has advanced to become one of our most important sales channels in all of Europe.

* European-wide franchises - in the last three months, Rutronik has succeeded in decisively expanding its franchises to the pan-European level.

By September, European-wide agreements had been signed with Epson Europe Electronics and a number of manufactures in the area of electrical engineering.

With Sharp, the broadliner gained one of the worldwide leading display manufacturers - also European-wide.

In November, the broadliner signed a pan-European agreement with Sony Ericsson, with which it wants to conquer the promising M2M market in Europe.

* About Microchip - Microchip Technology (NASDAQ: MCHP) has its headquarters in Changler/Arizona (USA) and is a leading provider of microcontroller and analog semiconductors.

Its components provide low-risk product development, lower total system cost and faster time to market for many different customer applications worldwide.

Microchip offers outstanding technical support along the entire delivery chain.

* About Rutronik - Rutronik Elektronische Bauelemente is one of Europe's leading broadband distributors for active, passive and electromechanical components in addition to displays and embedded boards.

The markets that the company primarily targets include the automotive, telecommunications, consumer goods and industrial electronics industries.

Wide-ranging services, competent transfers of expertise in the areas of product development and design, as well as logistics and supply chain management solutions round off its customer and future-oriented range of goods and services.

The company, established by Helmut Rudel in Ispringen/Germany in 1973, employs about 1,000 staff throughout Europe and is looking to achieve sales of EUR 430 million in fiscal year 2005.

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