VA TECH SAT Chooses NetSilicon for Fiber-Based Industrial Automation System; NET+ARM Enables Network Connectivity for Power Plant and Power Distribution Applications

Business Wire, Nov 21, 2000

WALTHAM, Mass.--(BUSINESS WIRE)--Nov. 21, 2000

NetSilicon, Inc. (Nasdaq: NSIL), the leading provider of Ethernet microprocessing solutions, has been selected by VA TECH SAT GmbH & Co., Vienna, Austria (trademark SAT Automation) to provide its NET ARM(R) system-on-a-chip embedded networking solution for VA TECH SAT's SATNET family of industrial networking products. NET ARM enables LAN and WAN connectivity and will be immediately deployed in the AM 1703 modular automation system for power plant and electrical distribution facilities and similar tough environments. VA TECH SAT is a worldwide leader in industrial and integrated process automation solutions.

"We needed a networking solution that could stand up to the rigors of the industrial and power-plant environments we typically serve, and that our engineers could quickly and easily integrate with our industrial automation systems," said Walter K. Eichelburg, marketing manager, VA TECH SAT. "NetSilicon's NET ARM was precisely the solution we required. Interfacing nicely with both our fiber- and copper-based network topologies, and compatible with industry standards, we are certain that users of our SATNET networking product line will benefit greatly from the process control networks we're enabling through NetSilicon."

NetSilicon's NET ARM solution, part of the NET Works(TM) family of embedded network products, provides vital control and connectivity functionality for VA TECH SAT's automation system products, including full network connectivity for 10/100 Ethernet LAN, WAN, and Internet. Additionally, NET ARM comes complete with all the hardware and software elements required for network connectivity embedded on a single microprocessor, including:

--TCP/IP software;

--HTTP server;

--CPU and network peripherals;

--Development tools and support;

--Real-time operating system

"VA TECH SAT is known for providing highly reliable, industrial strength, networked automation systems for rigorous production, manufacturing, and power generation environments, proving yet again that NetSilicon is up to even the most demanding network tasks," said Cornelius "Pete" Peterson, Chairman and CEO, NetSilicon. "Equally as important, by satisfying all their networking needs on a single integrated chip, NetSilicon has allowed VA TECH SAT to design, develop and deliver their products more quickly and at a lower cost while applying key engineering resources to more important product development efforts."

The VA TECH SAT's AM 1703 modular automation unit is designed on a standards-based architecture, providing a scalable platform even for direct use in the high-EMI environments of electric power switchyards. NET ARM interfaces with the AM 1703's high-speed fiber optic network infrastructure, ensuring fast, reliable dataflow, real-time communication and optimum operations. The AM 1703 will initially be deployed at a large power plant currently under construction in China and also several electric power grids in Europe and Africa.

NetSilicon's NET Works family of system-on-chip networking solutions allows design organizations to transform electronic devices into network appliances by providing simple, cost-effective connectivity, saving time and money in product development and helping ensure rapid time-to-market.

About NetSilicon

NetSilicon, Inc. (NASDAQ: NSIL) is a leading provider of Ethernet microprocessing solutions to manufacturers building intelligent, network-enabled devices. These solutions integrate system-on-silicon and software to provide a complete platform for Internet- and Ethernet-connected products. The NET Works platform allows manufacturers to shorten their time to market, reduce development risk, lower costs, and free their engineers from the difficult task of integrating multi-vendor networking components. NetSilicon is enabling device intelligence and connectivity in a broad range of industries including office imaging, industrial automation, telecommunications, building controls, security and point of sale. NetSilicon's solutions are paving the way for the device-centric networks of tomorrow. For more information, visit www.netsilicon.com or call 800-243-2333.

About VATECH SAT

VA TECH is a globally operating, Austrian-headquartered technology-engineering group that provides value to customers over the entire plant life cycle. Leading international positions are held in the Metallurgy, Hydro Power Generation, Power Transmission and Distribution, Water Systems and Industrial Services businesses. In 1999, VA TECH achieved sales of EUR 3.4bn according to IAS with a work force of 20,600 employees. VA TECH is listed on the Vienna, London and New York (ADR: VATHY) stock exchanges. VA TECH SAT is the automation business unit of VA TECH and operates in many European and Asian countries and is ISO 9001 certified.

For more information visit www.sat-automation.com or www.vatech.co.at.

Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements that involve risks and uncertainties. The forward-looking statements in this release concerning NetSilicon's product's ability to provide network connectivity and local intelligence are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially due to a variety of factors, including without limitation the company's ability to develop, produce, and market products that incorporate new technology on a timely basis, that are priced competitively and achieve significant market acceptance; higher expenses associated with the development and marketing of new products; changes in product mix; risks of dependence on third-party component suppliers; inventory risks due to shifts in market demand; the presence of competitors with broader product lines and greater financial resources; intellectual property rights and litigation; needs for liquidity; and the other risks detailed from time to time in the company's reports filed with the Securities and Exchange Commission.