Merix Corporation completes $10 Million convertible debt financing

Merix Corporation announced the completion of its sale of an additional $10,000,000 aggregate principal amount of its 4% Convertible Senior Subordinated Notes due 2013 pursuant to the exercise of the option by the initial purchaser granted to it in connection with the initial offering of the notes.

The notes were sold to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"). Merix has received total gross proceeds of $70 million from the sale of notes in this offering and the initial offering, which closed on May 16, 2006.

Merix used the proceeds from the sale to retire $25 million principal amount of 6.5% convertible debentures due May 2007 and will also repay $30 million of bank debt incurred in Asia in connection with the acquisition of Merix' Asian operations. The remaining proceeds are expected to be used to further reduce debt or for other corporate purposes.