Soitec announces the successful early amortization of its 2018 OCEANEs with a 98.74% conversion rate

• Early reduction of debts by €41.8 million and equity reinforcement by nearly the same amount
• Share capital increased by 3.48%
• Positive net cash position

Bernin (Grenoble), France, August 9, 2017 - Soitec, a world leader in generating and manufacturing revolutionary semiconductor materials confirms, as announced on July 7, 2017, the successful early amortization, effective as of August 8, 2017, of all the outstanding bonds convertible into and/or exchangeable for new or existing shares issued by the Company on September 18, 2013 and expiring on September 18, 2018 (ISIN code FR0011566793, mnemonic "YSOIA") (hereinafter the « OCEANEs »)^[1].

As of July 7, 2017, 16,205,264 OCEANEs were outstanding, representing approximately 40.5% of the initially issued OCEANEs, as almost all others have been bought-back in June 2016, as announced by the Company on June 6, 2016.

The holders of the OCEANEs had the option up to and including July 28, 2017 either to exercise their shares allocation right to obtain 0.066 ordinary share of €2.00 par value per OCEANE, or to receive a cash reimbursement of their OCEANEs, at par value, i.e. €2.58 per OCEANE, plus accrued interests since the last interest payment date, representing a total amount of €2.64823 per OCEANE.

Almost all the OCEANEs holders have opted for shares allocation.

As a consequence, 16,001,014 OCEANEs, i.e. 98.74% of the OCEANEs outstanding as of July 7, 2017 have been converted into 1,056,057 ordinary shares of €2.00 par value. The balance, i.e. 204,250 non-converted OCEANEs, has been reimbursed in cash for an approximate total amount of €541,000.
After the early amortization process, the Company's share capital has been increased by €2,112,114, i.e. by about 3.48%.

It now amounts to €62,758,749.70 and is divided in 31,367,567 ordinary shares of €2.00 par value each (ISIN code FR0013227113, mnemonic "SOI") and of 236,157 preference shares of €0.10 par value each, not listed^[2].

This process gives to Soitec the opportunity to early reduce its debts by €41.8 million, to reinforce its equity by nearly the same amount, and to have a positive net cash position.

About Soitec

Soitec (Euronext, Paris) is a world leader in designing and manufacturing innovative semiconductor materials. The company uses its unique technologies to serve the electronics markets. With more than 3,000 patents worldwide, its strategy is based on disruptive innovation to answer its customers' needs for high performance, energy efficiency and cost competitiveness. Soitec has manufacturing facilities, R&D centers and offices in Europe, the U.S. and Asia.

Soitec and Smart Cut are registered trademarks of Soitec.

Soitec is a French joint-stock corporation (Société Anonyme) with a share capital of €62,758,749.70, having its registered office located at Parc Technologique des Fontaines - Chemin des Franques - 38190 Bernin (France), and registered with the Grenoble Trade and Companies Register under number 384 711 909.

For more information, please visit www.soitec.com and follow us on Twitter: @Soitec_EN

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Disclaimer

This announcement may not be published, distributed or circulated in the United States of America. The early redemption undertaking may not be accepted in or from the United States of America or any other jurisdiction in which said redemption could be unlawful or subject to restrictions, nor may it be addressed to persons residing in the United States of America or in any such jurisdiction. No document pertaining to this early redemption may be directly or indirectly transmitted in such jurisdictions or to such persons. This announcement is not an offer to purchase securities in the United States of America or solicitation of an order to sell securities in the United States of America or in any other jurisdiction where such offer or solicitation would be illegal.