U.S. Robotics Unveils New Products, High-growth Strategy At CES

Business Wire, Jan 6, 2001

Busines & Technology Editors

ROLLING MEADOWS, Ill.--(BUSINESS WIRE)--Jan. 6, 2001

Company Announces Strategic Partnership with Broadcom, Wireless

and Broadband Products, Corporate Headquarters

U.S. Robotics, the world's No. 1 selling modem brand, today announced new products marking its entry into the high-growth markets of wireless networking and broadband Internet access.

The company also announced a strategic agreement with Broadcom Corporation, its corporate headquarters in Schaumburg, Ill., and the location of its new Emerging Business Unit in Orange County, Calif.

"U.S. Robotics' extensive heritage of Internet access solutions, brand strength and channel presence has created an ideal foundation for the expansion into the emerging high-growth markets," said Van M. Andrews, President and CEO of U.S. Robotics. "We are focused on maximizing profitability and capturing share in emerging markets while bringing a full portfolio of Internet access products to our customers. We are pleased to announce the first of many products beyond the analog and ISDN space, and a significant relationship with Broadcom Corporation."

Strategic Alliance with Broadcom

Broadcom Corporation is the leading provider of highly integrated silicon solutions that enable broadband digital transmission of voice, video and data. Through this relationship, U.S. Robotics will bring cable modems and Home Phoneline Networking Alliance (HomePNA) compliant home networking products to market during the second quarter of 2001. U.S. Robotics also plans to develop future cutting edge communications technologies, based on Broadcom's chips.

Broadband Products

U.S. Robotics will be shipping cable and DSL modems by the beginning of the second quarter of 2001.

"Broadband Internet access is the next logical step for U.S. Robotics," said Len Landi, Product Line Manager for U.S. Robotics. "We have the knowledge and expertise necessary to connect users to the Internet with the same reliability and quality we have brought to the ISDN and analog marketplace."

U.S. Robotics will show beta-units of several broadband products at CES including the U.S. Robotics ADSL USB Modem. This product is multi-mode, supports G.DMT as well as G.lite and is expected to ship during the second quarter of 2001 along with the U.S. Robotics ADSL Ethernet Router. U.S. Robotics based this DSL modem on a chipset solution from GlobeSpan, Inc., a leading provider of integrated circuit, software and system designs for DSL applications. U.S. Robotics will continue to work with GlobeSpan on future DSL products.

The U.S. Robotics Ethernet Cable Modem will also be shown as a beta unit at CES. The modem is DOCSIS 1.0 certified and will be upgradeable to DOCSIS 1.1. Both this model and a USB Cable modem are planned for Q2 2001.

Wireless Products

As part of its suite of wireless products, U.S. Robotics is now shipping the U.S. Robotics Wireless PC Card and Wireless PCI Adapter. The company will also soon begin shipping the U.S. Robotics Wireless Access Point. The products are based on the 802.11b wireless standard and provide an affordable wireless connectivity solution for the SOHO and home environment. Wireless products are immediately available from www.usr.com. They will be available in stores within Q1.

U.S. Robotics' Wireless PCI Adapters or PC Cards do not require an access point, making wireless networking more affordable to end users. Customers can create a peer-to-peer network that allows up to three computers to simultaneously share Internet access, files, and printers if they are attached to PCs on the network. Users desiring to network more than three computers can connect up to 20 using the U.S. Robotics Wireless Access Point.

Location

U.S. Robotics Corporation, has selected Schaumburg, Ill, as the location of its new corporate headquarters. The company's Core Business Unit, which will be focused on analog modem technologies and other high-volume products, will be based in Schaumburg. Roy A. Wainwright, formerly Vice President and General Manager of FastComm Communications, will serve as the business unit's Vice President and General Manager.

U.S. Robotics' Emerging Business Unit will be based in Orange County, Calif., and will focus on leading edge technology opportunities. A general manager and site for that division will be selected by the end of January. "Orange County provides access to an excellent talent base for our Emerging Business Unit," Mr. Andrews said. "Our proximity to the leading technology companies in both Orange County and Silicon Valley also allow us better opportunities to forge strategic relationships in order to expand U.S. Robotics' presence in high-growth markets."

"With the selection of our facilities and the completion of our senior management team, U.S. Robotics is positioned to amplify our solid lead in dial-up Internet access and to aggressively pursue new market opportunities in cable, DSL and wireless," Mr. Andrews said. "We will unlock the powerful brand equity of U.S. Robotics as we explore different methods to connect our customers to the information they need every day."