VLSI to Support Microsoft Interactive PC/TV Initiative With Data Security Processor Chips; VLSI GhostRider Chip to Secure Electronic Commerce, Intellectual Property and Privacy Over New Consumer Medium

Business Wire, Jan 9, 1997

SAN JOSE, Calif.--(BUSINESS WIRE)--Jan. 9, 1997--VLSI Technology Inc. (NASDAQ:VLSI) announced today the development of data encryption technology supporting Microsoft's vision for entertainment-oriented PCs.

VLSI's new encryption technology will initially be integrated into the forthcoming GhostRider(TM) security chip, enabling secure distribution of pay-per-view television, consumer and business software and complete electronic commerce services.

"Our relationship with Microsoft confirms VLSI's leading position in hardware encryption products," said Neil Shea, director, secure products group. "As electronic commerce and communication becomes more commonplace, assuring security for individuals and companies becomes ever more crucial. We're delighted to participate with Microsoft in providing secure solutions for this new market."

"Microsoft's long-term objective of integrating personal computers with television will require the support of many companies involved in technology convergence," said George Moore, product unit manager, Personal Business Systems Group, Microsoft. "VLSI strengthens the PC/TV platform by delivering hardware data security solutions that help us all reach common goals."

VLSI is working with a number of companies in the PC industry to deliver products to the market, including ComStream, DIRECTV(R), Hughes Network Systems, and Samsung. VLSI will introduce the GhostRider chip at the RSA Data Security Conference to be held Jan. 28-31, 1997 in San Francisco.

Essential Enabling Technology

Introducing a new communications medium only makes sense if content providers can use it to expand their businesses and if end users recognize it as a conduit to easily access things they want -- entertainment, information and services. VLSI's proven approaches to data security create the trust necessary for content providers to offer their goods on the market.

In return, end users gain access to new information products and services along with the ability to make transactions without exposing themselves to theft, fraud and privacy violations. Data security has emerged as an essential enabling technology for PC/TV infrastructure, assuming equal status with digital communications, microprocessors and software standards.

VLSI Advantages: Experience, Speed, Strength and Standards

VLSI approaches the PC/TV data security opportunity as an acknowledged leader in digital cryptography ICs. VLSI began its involvement in the data security market supplying cryptography ICs to data security-conscious companies. With the rise of data networking, often carrying economically valuable information, VLSI focuses on applying data encryption and key management technologies to commercial markets.

VLSI's security IC architecture vastly strengthens data security and privacy by performing all security encryption/decryption on a dedicated chip, closed to outside intrusion. VLSI security ICs integrate an on-chip RISC processor and encryption/decryption engine. These functional system blocks (FSB(TM)) accelerate cryptographic processing and relieve main CPUs of data security processing overhead.

While traditional approaches to data security stress software solutions, software-only data security has proven vulnerable to attack. In addition, software security algorithms typically run on the same microprocessors used to manage other data. This often slows down overall computer performance, particularly when using strong, mathematically intense cryptographic algorithms or decrypting huge chunks of data like video.

VLSI's standard and custom security processor chips developed for the PC/TV will include a triple-DES (Data Encryption Standard) encryption building block and can maintain a real-time throughput fast enough for full-motion MPEG-II broadcast-quality video. In terms of cryptographic strength, VLSI believes it would be economically impractical to decrypt PC/TV-borne data protected by VLSI's data security processor chips in the absence of keys or other assistance.

About VLSI Technology Inc.

VLSI Technology Inc. designs and manufactures System-Level Silicon(TM) solutions based on its FSB functional system blocks(TM) library. Targeting its offerings toward the communications, consumer digital entertainment and computing markets, the company offers its customers advanced system-level integration capabilities. The company is based in San Jose, with 1995 revenues of $720 million, and approximately 3,000 employees worldwide. Visit VLSI's homepage at http://www.vlsi.com . -0-

Note to Editors: FSB, functional system block, GhostRider and System-Level Silicon are trademarks of VLSI Technology Inc. All other brand or product names are trademarks and/or registered trademarks of their respective owners.

CONTACT: VLSI Technology Inc., San Jose

Martin Chorich, 408/922-5155

martin.chorich@sanjose.vlsi.com