Obrem stays on after failure of proxy campaign at Micrel

23 May 2008

Obrem Capital Management has agreed to continue to be an investor in semiconductor maker Micrel despite its failure to get shareholder support for its board representation, chairman Ray Zinn, said in a statement.

Shareholders of Micreal Inc at a special meeting rejected Obrem Capital's proposals to remove Micrel's current board and replace them with its nominees as well as a proposal to rescind the company's shareholder rights plan.

A statement issued by California-based Micrel Inc's chairman Ray Zinn said the shareholders rejected all of the proposals made by dissident shareholder Obrem Capital Management the company's recent shareholders' meeting, in which it sought to oust its current board and replace it with its own members.

''The strong support extended by shareholders indicate their commitment to the company. After the special meeting, members of Micrel's board of directors met Andrew Rechtschaffen and Eric Gomberg of Obrem Capital. At the meeting, Rechtschaffen expressed his willingness to be a long term investor in Micrel,'' Zinn added.

"The meeting with Obrem management was open and friendly. Rechtschaffen indicated his intention to be a long term investor in Micrel. Both Obrem and the board are committed to moving forward in a positive way. We look forward to continuing the productive dialogue we enjoy with all of our shareholders," Zinn said.

Raymond D. Zinn is a co-founder of the company and has been its president, chief executive and chairman of its board of directors since the company's inception in 1978.