Conexant and Simac Broadband Technologies Announce Plans for First Cable Modem Chips to Support Digital Video Broadcasting 2.0 Standards

Business Wire, March 8, 1999

NEWPORT BEACH, Calif.--(BUSINESS WIRE)--March 8, 1999--

Collaboration Will Now Allow Conexant to Sell

Industry's First Cable-modem Chips to Support Both U.S.

and European Standards for High-Speed Internet Access

Conexant Systems Inc. (Nasdaq:CNXT) and Simac Broadband Technologies BV Monday announced they will jointly develop the industry's first single-chip cable modem solution to support the latest Digital Video Broadcasting (DVB) 2.0 standards for high-speed Internet access.

The collaboration will now enable the first cable-modem chips to support both European and U.S. standards.

Simac will use Conexant's recently announced InfoSurge CN9414 programmable cable-modem chip and Simac's extensive DVB cable-modem expertise to develop a family of competitively-priced cable-modem products that will debut in the third calendar quarter of 1999. Simac's first product will be a dedicated high-speed Internet modem, and will be followed by cable modems offering additional services such as telephony. The collaboration will also enable Conexant to offer other cable-modem manufacturers the first programmable, single-chip cable modem and associated reference design, a total solution that will include all the software necessary to support both U.S. and European cable-modem standards.

"Conexant's programmable CN9414 chip is the first solution which allows us to implement both current and future versions of the ETS 300800 cable-modem standard," said J. H. Streng, general manager of Simac Broadband Technologies. "In this way, we meet the Euromodem requirements as formulated by EuroCableLabs and the European Cable Communications Association, which represents European cable operators with a combined total subscriber base exceeding 40 million."

Until now, most cable-modem chips have only supported U.S. standards for the cable modem's Media Access Controller (MAC), but Conexant's CN9414 MAC can be programmed to support multiple industry standards and new feature sets. A leader in DVB technology, Simac will work with Conexant on software that runs on the CN9414, for Simac's DVB 2.0-compliant cable modem.

"Our announcement with Simac Broadband Technologies illustrates the compelling advantages of the CN9414 chip's programmable architecture," said A.C. D'Augustine, senior vice president and general manager for Conexant's Digital Infotainment Division. "The ability to create cable modems that can support both European and U.S. industry standards will be a key benefit for manufacturers who want to participate in the rapidly evolving worldwide cable-modem market."

The collaboration between Conexant and Simac is also aimed at enabling European cable operators to offer their subscribers significantly lower-cost products than were previously available. Conexant's highly integrated chip is the first to include a microprocessor and other key functions that would otherwise be expensive add-on requirements for building a complete cable-modem product. Conexant estimates that modem manufacturers who use the CN9414 chip can cut product costs by as much as 25 percent as compared to alternative chips.

"It is critical for European cable operators that there be early availability of competitively priced cable modems which are compliant with the Euromodem specification," said Thomas Stevens, director of operations at Palet Kabelcom, a leading European cable operator. "Together with Castel, our partner in @Home Nederland, we actively participated in the formulation of the Euromodem specification. We believe that the arrival of low-cost, industry-standard modems will provide a significant boost to the European cable modem market."

Conexant Systems Inc. is the $1.2 billion company that was created when Rockwell International spun off its semiconductor systems business to shareowners in December 1998. Conexant is the world's largest independent company focused exclusively on providing semiconductor products for communications electronics. With more than 30 years of experience in developing analog modem technology, the company draws upon its expertise in mixed-signal processing and communications technology to deliver integrated systems and semiconductor products for a broad range of communications applications. These products facilitate communications worldwide through wireline voice and data communications networks, cordless and cellular-wireless telephony systems, personal imaging devices and equipment, and emerging cable and wireless broadband communications networks. The company aligns its business into five product platforms: Personal Computing, Personal Imaging, Wireless Communications, Digital Infotainment, and Network Access.

Certain matters discussed in this news release regarding future cable modem solutions and digital broadband products may constitute forward-looking statements, such as discussions of product release dates, product availability, market acceptance and customer demand. Such forward-looking statements involve certain risks and uncertainties, including the timely release of products by manufacturing suppliers, the availability of components and technologies from partners, suppliers and licensors, the acceptance of applicable technologies, the impact of competitive markets, products and pricing, and other risks detailed from time to time in the company's SEC reports, including the reports on Form 10-Q for the quarter ending Jan. 1, 1999. Actual results may vary materially.