Conexant Announces Profitability Ahead of Schedule With Second-Quarter Results; Expansion Platform Businesses Up 18 Percent Sequentially

Business Wire, April 21, 1999

                         Conexant Systems Inc.
                        Selected Corporate Data
                              (Unaudited)

Business Platform Overview
                                     Three Months Ended,
($ in thousands)           3/31/99          12/31/98         3/31/98
                       % of              % of            % of
                       Sales    Revenue  Sales  Revenue  Sales Revenue

Personal Computing      47%    $149,557   52%  $152,277   55% $149,225

Personal Imaging         7%      20,611    6%    16,016   10%   26,797

Digital Infotainment    13%      42,644   13%    39,444   13%   36,384

Network Access          15%      47,021   14%    41,727   10%   28,483

Wireless Communications 18%      57,099   15%    45,214   12%   33,352

Sales by Region

Americas                32%    $102,044   38%  $112,332   43% $117,536

Europe                  11%      33,794   11%    33,577   14%   37,832

Japan                   13%      41,318   10%    29,422   13%   37,405

Asia-Pacific            44%     139,776   41%   119,347   30%   81,468



                                          Three Months Ended,
Other Data                         3/31/99      12/31/98    3/31/98

Depreciation and Amortization      $52,422      $51,764     $48,433

Capital Expenditures                18,522       14,845      79,808


                        Conexant Systems Inc.
                Consolidated Statements of Operations
             ($ in thousands, except for per-share data)
                             (Unaudited)

                                            Three Months Ended,
                                     3/31/99  12/31/1998/a  3/31/1998/a


Net sales                           $316,932     $294,678   $274,241
Cost of sales                        186,677      216,754    152,611

Gross margin                         130,255       77,924    121,630
Research & development                68,802       71,109     80,652
Selling, general & administrative     48,893       64,016     68,819
Amortization of intangibles            2,063        2,064      2,771
Special charges -
 Rockwell retained assets                 --       20,000         --
Special charges - other                   --       17,906         --

Operating earnings (loss)             10,497      (97,171)   (30,612)
Other income (expense), net              383         (143)     1,926

Income (loss) before income taxes     10,880      (97,314)   (28,686)
Provision (benefit) for income taxes   3,263      (40,191)   (13,075)

Net income (loss)                     $7,617     $(57,123)  $(15,611)

Basic and diluted earnings per share   $0.08
Weighted average shares:
Basic                                 94,979
Diluted                               97,732

Pro forma, basic and diluted:
Loss per share                                     $(0.60)    $(0.16)
Weighted average shares                            94,935    100,100

(a) Certain reclassification entries have been made to prior periods
for consistency purposes.


                 Condensed Consolidated Balance Sheets
                           ($ in thousands)

                                 3/31/99    12/31/1998/a    9/30/98
Current Assets:                (Unaudited)   (Unaudited)

Cash and cash equivalents       $159,099       $13,282      $14,000
Restricted cash                       --        64,000           --
Accounts receivable              145,961       135,780      166,386
Inventories                      146,661       142,050      200,926
Assets held for disposal              --            --       42,346
Other current assets             101,523        99,541      163,294

Total current assets             553,244       454,653      586,952
Property, plant & equipment,
 net                             651,074       682,968      713,400
Other assets                     112,200       115,303      118,178

Total assets                  $1,316,518    $1,252,924   $1,418,530

Total current liabilities       $314,361      $259,885     $330,263
Other long-term obligations       90,833        95,967       78,892
Total shareholders' equity       911,324       897,072    1,009,375

Total liabilities and
 shareholders' equity         $1,316,518    $1,252,924   $1,418,530

(a) Certain reclassification entries have been made to the prior
period for consistency purposes.