Broadcom and Lucent Technologies Joint Home Networking Proposal Selected as New 10 Mbps Home Networking Specification - Home Phoneline Networking Alliance's HomePNA 2.0 10 Mbps standard - Industry Trend or Event

Cambridge Telcom Report, August 2, 1999

New technology proposed in March 1999 by Lucent Technologies (NYSE: LU) Microelectronics Group and Epigram, Inc. is now the basis for the Home Phoneline Networking Alliance's (HomePNA) 2.0 standard for 10 Megabit per second (10 Mbps) home networking technology. Epigram, Inc., then an independent corporation and co-submitter of the proposal, is now a wholly owned subsidiary of Broadcom Corporation (Nasdaq: BRCM).

Several companies have already announced they expect to ship products equipped with 10 Mbps high speed home networking this year. High-speed home networking gives consumers the benefits of networking home PCs and intelligent devices, enabling home users to simultaneously access high-speed Internet services from two or more computing or entertainment devices using an existing in-home telephone line, as well as a single modem and Internet service provider.

The HomePNA is a consortium of more than 90 companies from the PC, consumer electronics, and network equipment manufacturing industries that aim to deliver easy-to-use, affordable, high-speed networking solutions over existing telephone wires. Lucent and Epigram are HomePNA members.

"This is great news for the PC and consumer electronics providers looking to capitalize on the high speed home networking marketplace," said Mike Wolf, an industry analyst for Cahners In-Stat Group. "Increasing consumer demand for broadband set top boxes, Internet appliances and modems underscore the need for 10 Mbps speeds. The new HomePNA 10 Mbps specification blends the combined communications semiconductor and home networking expertise of Lucent Technologies and Broadcom Corporation." Cahners In-Stat Group believes the U.S. home networking marketplace will grow to $1.4 billion by 2003, with the vast majority based on products using HomePNA specifications.

"Tuesday's selection of this 10 Mbps home networking technology -- only about a year after the concept hit the industry's radar screen -- is proof of how bullish the industry is about home networking applications and their multiple benefits of greater versatility, reliability and higher speeds to consumers," said Tony Grewe, director of strategy and business development with Lucent's Microelectronics Group. "Home networking technology progressed from a concept introduced a year ago to a real world, viable technology. I am not aware of any other technology for consumers in this industry that has raced along at such a frenetic pace."

"Our aggressive schedule for developing products to the 10 Mbps specification will enable systems manufacturers to make products available for families and small businesses later this year," said Jeff Thermond, vice president and general manager of Broadcom's Home Networking Division. "This new standard culminates more than 100 man-years of high speed home networking research and development by Epigram and Broadcom. We are pleased that the HomePNA unanimously selected the Broadcom and Lucent joint technology proposal as the basis for its 10 Mbps phoneline networking specification."

The Home Phoneline Networking Alliance is an incorporated, non-profit association of more than 90 industry-leading companies working together to help ensure adoption of a single, unified phoneline networking industry standard and rapidly bring to market a range of interoperable home networking solutions. For a complete list of HomePNA members, go to http://www.homepna.org.

Broadcom Corporation is a leading provider of highly integrated silicon solutions that enable broadband digital transmission of voice, data and video content to and throughout the home and within the business enterprise. Using proprietary technologies and advanced design methodologies, the company designs, develops and supplies integrated circuits for some of the most significant broadband communications markets, including the markets for cable set-top boxes, cable modems, high-speed office networks, home networking, direct broadcast satellite and terrestrial digital broadcast, and digital subscriber line (xDSL). Broadcom is headquartered in Irvine, Calif., and may be contacted at 949-450-8700 or at http://www.broadcom.com.

Lucent's Microelectronics Group designs and manufactures integrated circuits and optoelectronic components for the computer and communications industries. More information about Lucent's Home Wire home networking solutions and WildWire Asymmetrical Digital Subscriber Line technologies can be found at http://www.lucent.com/micro.> Lucent Technologies designs, builds and delivers a wide range of public and private networks, communications systems and software, data networking systems, business telephone systems and microelectronic components. Bell Labs is the research and development arm for the company. For more information on Lucent Technologies, headquartered in Murray Hill, NJ., visit its web site at http://www.lucent.com.