RadiSys Corporation has announced the successful completion of its previously announced acquisition of Convedia Corporation, and so Convedia has become a wholly owned subsidiary of RadiSys. Convedia Corporation is the global leader in IP media processing technologies and IP media server products. Pursuant to the terms of the arrangement agreement, RadiSys paid $105 million in cash at closing.

RadiSys could pay up to an additional $10 million in cash determined by a contingent formula tied to achieving certain profitability goals during the 12-month period beginning 1st October 2006.

In connection with the closing, the Compensation and Development Committee of RadiSys' Board of Directors approved the RadiSys Corporation Stock Plan for Convedia Employees.

The maximum number of initial and ongoing new hire shares of common stock that may be granted under this plan is 365,000.

The Committee awarded Convedia employees 169,300 stock options, 5,800 restricted stock awards and 132,905 restricted stock units in accordance with this plan.

Approximately 106 Convedia employees received these awards under this plan.