Obrem Capital Sends Letter to Micrel (MCRL) Stockholders

May 5, 2008 12:20 PM EDT

Obrem Capital Management, LLC issued a letter to the stockholders of Micrel, Incorporated (NASDAQ: MCRL), again urging them to hold Micrel's Board of Directors accountable for the Company's decade-long underperformance by electing Obrem's director Nominees to Micrel's Board at a special meeting of stockholders to be held on May 20, 2008.

In its letter, Obrem Capital raises eight key questions it believes shareholders should ask Micrel's Management and Board. [jt]

See full text of letter here.


Dear Fellow Shareholder,

The vote to reclaim control of Micrel for the benefit of its shareholders, and away from an entrenched Board, is rapidly approaching. We have appreciated the opportunity to speak with many of you in recent weeks. Not surprisingly, both long-standing and newer shareholders have told us they recognize the failure of this Board and management team to create significant value for shareholders, despite their strident rhetoric to the contrary.

1) IN TRYING TO HIGHLIGHT MICREL'S SO-CALLED "VALUE CREATING RESULTS," WHY DOES MICREL NOT PROVIDE SHAREHOLDERS WITH A SIMPLE 5 OR 10 YEAR STOCK PRICE CHART?

Tellingly, management fails to mention Micrel's stock price performance over the past decade when attempting to recast its poor track record in a positive light. For all of the accomplishments Micrel claims to have made in the past few years, the shareholders have yet to see any benefit in the form of increased share price. Despite management's efforts to portray itself as accomplished and capable, it cannot escape the simple fact that it has destroyed significant shareholder value over the past decade.

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