Magnolia Broadband Appoints Former Nokia Executive to Board of Directors

Magnolia Broadband, Inc., a fabless semiconductor company and innovator of radio frequency (RF) solutions for the cellular industry, today named Osmo Hautanen, a former Nokia executive, to its board. Hautanen will advise and support Magnolia's efforts to further develop and maintain the company's leadership position in providing its handset diversity technology to wireless carriers and industry OEMs.

Hautanen is a recognized leader in technology, telecommunications and private equity communities. During his 18 year tenure as an executive at Nokia, Hautanen was instrumental in developing the U.S. and Latin American markets. He also served as the CEO of Fenix LLC, the holding company for Union Pacific Corporation's extensive portfolio of technology assets.

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As the president of the consulting company Cosmos Consulting, Inc., Mr. Hautanen has built a portfolio of active management and advisory positions with publicly held companies as well as notable venture backed businesses like Silicon Laboratories, Mesh Networks and Idedic.

"We welcome Mr. Hautanen's counsel as we continue our focus on delivering world-class handset diversity technology to the global marketplace," said Haim Harel, CEO of Magnolia Broadband. "Mr. Hautanen's telecom expertise and exceptional success in helping a wide variety of companies grow will contribute to Magnolia's future success."

"I am excited to be a part of a successful organization that is poised to further expand and grow its leadership in a technology market with such potential," said Hautanen. "Magnolia's DiversityPlus(TM) is an exceptional technology platform that is well-positioned to respond to the growing demand for antenna diversity architectures in mobile devices."

About Magnolia DiversityPlus(TM)

Magnolias' DiversityPlus(TM) is a chipset and technology platform designed to exploit antenna diversity architectures in mobile terminals. The new architecture extends cellular phone battery life and improves coverage, capacity and data rates of existing cellular networks.

Through DiversityPlus, Magnolia is the first to improve both transmission and reception capabilities in mobile terminals using dual antenna inputs and outputs to create more robust signals through its diversity algorithm processing. Cell phones powered by DiversityPlus will have longer battery life and enable carriers to improve coverage and data throughput, as well as serve twice as many subscribers with the same infrastructure.

DiversityPlus is initially targeted to wireless service providers using CDMA technology, however, Magnolia is planning to expand to other markets including WCDMA, Wi-Fi, Wi-Max and EDGE. Magnolia is currently shipping engineering samples, with full production slated for the second half of 2004.

About Magnolia Broadband

Magnolia is an innovative developer of semiconductors for the wireless industry and the first company to provide diversity antenna technology using unique RF chipset products that incorporate both transmit and receive diversity. By using a unique RF (Radio Frequency) chipset product and algorithm, it incorporates a novel way of combing RF signals from two antennae for both transmit and receive signals in the mobile terminal, enabling carriers to serve twice as many subscribers within the same wireless infrastructure while boosting phone coverage, data rates and battery performance. Carriers and consumers also benefit from more reliable connections, improved quality of service while having small impact on cost.

Leading CDMA carriers and mobile terminal manufacturers have tested Magnolia's technology. Since its inception in 2001, Magnolia has raised $17 million in capital from notable investors like Draper Fisher Jurvetson Gotham, ECentury Capital Partners, SCP Private Equity Partners, Selway Partners and Silverstar Holdings. Magnolia has filed numerous patents related to its core technology and partnered with semiconductor industry notables such as Jazz Semiconductor, and Amkor Technology. For more information, go to www.magnoliabroadband.com.

DiversityPlus(TM) is the trademark of Magnolia Broadband Inc.

Magnolia Contact information Joseph Dans Director of Accounts Fusion Public Relations 570 Seventh Avenue New York, NY 10018 (212) 651-4215 joseph.dans@fusionpr.com