UNITED STATES SECURITIES AND EXCHANGE COMMISSION

          Litigation Release No. 15846 / August 12, 1998

          Accounting and Auditing Enforcement
          Release No. 1066 / August 12, 1998

          UNITED STATES v. CHAN DESAIGOUDAR AND STEVEN J. HENKE, United
          States District Court for the Northern District of California,
          No. CR 97-0294 VRW.

          On July 15, 1998, after a five-week criminal jury trial in San
          Francisco prosecuted by the U.S. Attorney for the Northern
          District of California, two former officers of California Micro
          Devices Corporation ("Cal Micro") were convicted of securities
          fraud in connection with a stock collapse that cost shareholders
          more than $100 million.  Chan Desaigoudar, former chairman and
          chief executive officer of Cal Micro, and Steven J. Henke, the
          Company's former vice president, treasurer and principal
          financial officer, were each convicted of six felony charges of
          fraud, making false statements to the Securities and Exchange
          Commission and insider trading.  Sentencing is scheduled for
          October 13, 1998 before U.S. District Judge Vaughn Walker.  Cal
          Micro is now operating under new management.

          The Securities and Exchange Commission has previously filed
          settled enforcement actions against four former Cal Micro
          officers, including the Company's former president, its former
          chief accounting officer, and two former vice-presidents of
          production.

          For additional information see Litigation Release Nos. 15690
          (March 31, 1998) and 14776 (January 4, 1996); Accounting and
          Auditing Enforcement Release Nos. 1022 (March 31, 1998) and 750
          (January 4, 1996).