CopperGate Communications Buys HomePlug AV Powerline Technology from Conexant Systems, Inc

Business Wire, May 7, 2008

Leads way towards next home networking standard, G.hn

TEL AVIV, Israel & NEWARK, Calif. -- CopperGate Communications, the Everywire Home Networking Company[TM], today announced the purchase of the HomePlug AV business from Conexant Systems, Inc. (NASDAQ:CNXT). CopperGate is now the first semiconductor company with home networking technologies supporting all three wire types - coax, phone and power lines.

CopperGate acquired the HomePlug AV business from Conexant including all relevant power line technology and silicon products, related patents, appropriate licenses, and requisite personnel. Former Conexant employees will become part of the CopperGate team and will expand the company's R&D initiatives in Southern California. The terms of the deal were not disclosed.

CopperGate is already the leading provider of HomePNA compliant chipsets, the dominant coax and phone wire standard for IPTV installations and the company remains strongly committed to the HomePNA standard.

"Adding power line technology to our HomePNA coax and phone line technology opens up many new markets globally and better prepares the company for the exciting new ITU home networking standard, G.hn," said Gabi Hilevitz, Chief Executive Officer of CopperGate. "We are not limited to a single wire, a single technology standard or a single way of thinking. Now, service providers globally will receive greater choice, flexibility, capability and value from one leader - CopperGate."

G.hn is the working group name for the next generation global home networking standard being created within the ITU-T. With G.hn, coax, phone wires and power lines will all be supported by a single standard. Today, there are twenty-five active global members of G.hn including AT&T, Verizon, France Telecom, Intel and TI and the group recently began meeting monthly due to strong interest and increased contributions. The G.hn foundation specification is expected by the end of 2008.

"It's very important that power line technology is now being included in international standards bodies like the ITU and IEEE, helping to promote a common power line networking approach worldwide," said Jaime Fink, Vice President of Technology and Strategy, 2Wire, Inc. "CopperGate's acquisition of power line technology should help accelerate delivery of the 3-wire capable G.hn standard that carriers want."

"For a number of years, it has been In-Stat's position that service operators desire to use multiple existing-wire mediums to offer them flexibility and cost-effectiveness for video distribution deployments. The capability to use two mediums (a pair) is an advantage compared to one medium, and three mediums 'beats a pair,'" observed Joyce Putscher, Principal Analyst at market research firm In-Stat.

"We at iSuppli are very bullish on G.hn. It makes a lot of sense for the market and with the Conexant acquisition, CopperGate appears to now have all the pieces necessary to become an early leader with compliant products in the market," added Steve Rago, Principal Analyst at the market analyst firm iSuppli. "It's pretty significant news."

About CopperGate

CopperGate Communications, the Everywire Home Networking Company[TM] develops high performance chipsets for broadband access and networking for high fidelity home entertainment applications such as HD-enabled IPTV, multi-room DVRs, and video on demand (VOD). As a leader in multi-wire home networking, only CopperGate is capable to offer both HomePNA and HomePlug technology for use in individual homes and multi-dwelling and multi-tenant units (MDU/MTU) worldwide. CopperGate chipsets have been deployed by leading triple-play service providers representing nearly 100 million lines and have already connected over 15,000 miles of coax. Founded in 2000, CopperGate is headquartered in Tel Aviv, Israel with offices in the United States, Taiwan, Korea, China and Japan.

For more information, please visit www.copper-gate.com.

Reader Contact Information

North America:

CopperGate Communications, 39899 Balentine Drive, Suite 355, Newark, CA 94560

Tel: 510-656-8500, info@copper-gate.com.

Europe and Asia:

CopperGate Communications, 34 Habarzel St., 69710 Tel Aviv, Israel

Tel: +972 3-644-4488, info@copper-gate.com.

Everywire Home Networking Company is a trademark of CopperGate Communications in the U.S.A. and other countries. All other trademarks mentioned herein are believed to be trademarks of their respective owners.