Telcordia Research Finds Rim Semiconductor's DSL Technology Delivers 200 Mbps; Former Bell Labs Validates Higher Delivery Speed and Better Data Quality of Rim Semiconductor's Products over VDSL2

Business Wire, August 28, 2006

PORTLAND, Ore. -- Rim Semiconductor's Embarq(TM) chips deliver up to 200 Mbps -- 100 percent faster than traditional VDSL2 technology. That is the conclusion of a research report from Telcordia Technologies, formerly Bell Labs. Telcordia found that semiconductors from Rim Semiconductor Company(TM) (OTCBB:RSMI), an innovator in video-over-copper technology, outperform VDSL2 chips in both speed and quality -- the two key technology issues for telecommunications companies trying to offer very high-speed data services, as well as video services, such as Internet Protocol Television (IPTV).

Overall, the study indicates that Rim Semiconductor offers better performance than competitive solutions to meet the demands of today's advanced broadband deployments. Specifically, Telcordia found that the Embarq product line delivers higher bit rates on both short and long copper loops than VDSL2 and higher data quality with fewer noise issues, improving the overall quality of service for end users. Embarq also coexists better with other technologies, including ADSL and fiber, due to its avoidance of low frequencies and its low power to avoid crosstalk, another issue impacting delivery quality.

"Rim Semiconductor has developed a new and very different very-high-speed DSL that achieves higher bit rates than VDSL2 on both short and long loops," says Dr. Kenneth J. Kerpez, senior scientist, Applied Research, Telcordia Technologies. "Carriers now have a powerful tool to offer a full range of services. The technology from Rim Semiconductor also has unique capabilities for carriers, including efficient modulation technology for higher speed transmission, and an on-the-fly adaptive equalization to limit noise that can cause service disruption on a line carrying IPTV signals."

Using accurate models of transmission systems and the copper telephone loop plant, Telcordia tested Rim Semiconductor's Embarq chips against VDSL2 profile 12a products that are being used by telecommunications carriers for new triple play services deployments. Detailed test observations include:

--Embarq achieves higher bit rates on short loops and long loops from 40% to more than 100% versus VDSL2 (12a), so carriers can offer IPTV services

--By including a low noise receiver, Embarq allows speeds as much as twice those of VDSL2 for better throughput for video-over-copper

--Embarq enables custom upstream or downstream data delivery, so very high downstream rates can be offered for residential video and high upstream speeds for business areas

--With its unique on the fly adaptive equalization, Embarq can adapt to time-varying noise instantaneously.

--Embarq is far more capable of handling time varying Repetitive Electrical Impulse Noise (REIN) resulting in a 50% performance improvement vs VDSL2.

--By avoiding low frequencies, Embarq allows coexistence with existing DSL type, as well as fewer crosstalk issues for fiber than from VDSL2 or ADSL2+

"Today's technology for IPTV deployments does not offer the speed and quality required for true high-definition video services," states Brad Ketch, president and chief executive officer of Rim Semiconductor Company. "Rim Semiconductor has been focused on developing innovative new technology to make IPTV a reality for consumers and for carriers. The Telcordia research validates the hard work of our engineering team and proves that there is a better DSL technology for next-generation video-over-copper deployments. We look forward to working with industry partners to bring Embarq to market."

About Rim Semiconductor

Rim Semiconductor Company (OTCBB:RSMI) develops technology for telecommunications companies to deliver demanding new video and data services with lower network costs. The company's chips allow data to be transmitted at greater speed and across extended distances over existing copper wire -- all with the highest quality of service -- for a better end-user experience. For more information, visit www.rimsemi.com.