Amati Communications and Texas Instruments Define New Generation of ADSL Technology and System Design; World's Most Powerful DSP and Most Advanced ADSL Combine to Develop Highest Speed Commercial Solution For ADSL Services.

SAN JOSE, Calif.--(BUSINESS WIRE)--Mar. 4, 1997--Amati Communications Corporation (NASDAQ: AMTX), and Texas Instruments Incorporated (NYSE: TXN), are jointly developing technology to meet the requirements of the most advanced data services in the world. The companies are combining the most powerful Digital Signal Processing (DSP) technology, the industry standard Asymmetric Digital Subscriber Line (ADSL) technology, as well as jointly developed software from both parties. The result will be a flexible solution for ADSL designs that not only offers the fastest path to system implementation, but also provides a highly cost effective and versatile solution for system architectures.

The technology will utilize Texas Instruments' new TMS320C6x DSP generation which offers 10 times the performance of any DSP in history. Boasting low cost, 1600 MIPS and an ultra-efficient C compiler, the TMS320C6x offers a whole new level of productivity and efficiency for system designers through the use of advanced software development tools.

The C6x, combined with TI's networking systems expertise, will enable a new level of flexibility in system design for future high speed data communications applications such as ADSL.

Combined with TI's DSP will be Amati's standards-based DMT software capabilities. Amati introduced a DSP-based solution for standard ADSL several years ago and has constantly been improving the core software to meet the ever increasing demands for higher speeds and longer copper loops in an architecture that offers lower costs and superior ADSL performance.

The combination of Amati's ADSL technology and TI's DSP expertise offers an exciting answer to the question of how ADSL can be implemented for various applications such as Intranet/Internet and video markets.

"We believe the TI announcement of their C6x technology is an exciting step forward for ADSL designers. Combine the TI technology with the advanced core technology developed over the years by Amati and you can see how ADSL will truly be a ubiquitous service offering. Such a service has to start with truly universal technology based on standards," said James Steenbergen, President and CEO of Amati. "Amati and TI working together and offering a packaged solution means more ADSL standard designs, more ADSL applications and more ADSL users."

"With the development of TI's TMS320C6x product line, we will be able to quickly deliver a robust, standards-based ADSL solution to customers," said Greg Waters, director of TI's Networking Business Unit. "In addition, customers will receive a fully interoperable, programmable, and easy-to-use technology which will combine Amati's experience and TI's end-to-end networking silicon solutions."

Amati is participating in tests of ADSL services at speeds from 1.5 Mbps up to 8 Mbps for services ranging from Internet access to video broadcast. The worldwide trials include services being offered by PTTs in Europe and Asia-Pacific, with companies such as Philips, Italtel, Tadiran and Samsung.

Among the international trials underway are broadcast video at 6 Mbps in Australia and data and video applications at 8 Mbps in France. In the US, Amati is also providing ADSL/DMT equipment in GTE's current Internet access trials in Washington and Texas.

Amati Communications Corporation

Amati is a leading developer of advanced transmission equipment utilizing DMT technology for the ADSL, Very High-Speed Digital Subscriber Line (VDSL) and cable modem markets. Amati has led the world in providing commercial ADSL products, including the Overture 8 for Internet Access, the modem that set the standard for performance, and the Allegro, the first ADSL access concentrator for both data and video services. Amati holds the ADSL/DMT patents and has licensed the technology to companies such as Nortel and Motorola. Amati is also a provider of network connectivity systems for the internetworking and OEM marketplaces. The company's connectivity products include LAN gateways, client-based workstation software and network data communications interfaces. Amati's World Wide Web site is at www.amati.com .

Texas Instruments

An industry pioneer and the worldwide leader in digital signal processing solutions, Texas Instruments celebrates the 15th anniversary of its first DSP in 1997. TI provides innovative DSP solutions to more than 20,000 customers worldwide in the computer, communications, consumer, automotive, military and industrial markets. TI was recognized by IEEE for technical excellence in the design and application of DSPs by receiving the 1996 IEEE Corporate Innovation Recognition Award.

TI offers a unique breadth of digital and mixed-signal products and technologies, hardware and software development tools, design information services and global support. Texas Instruments Incorporated, headquartered in Dallas, TX, is a high-technology company with sales or manufacturing operations in more than 30 countries.

TI products and services include semiconductors; defense electronics systems; software productivity tools; mobile computing products and consumer electronics products, electrical controls; and metallurgical materials. More information about TI's TMS320C6x is located on the World Wide Web at http://www.ti.com/sc/C6x .

Statements made in this press release which are not historical, including statements regarding product demonstration, product capabilities and markets, are forward looking statements and as such are subject to number of risks. Please see the Company's Annual Report and Form 10-K for the 1996 fiscal year and other reports filed with the Securities and Exchange Commission for additional disclosure regarding such risk factors.

CONTACT: Simon/McGarry Public Relations

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Benjamin W. (Tac) Berry, 408/879-2035

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Texas Instruments

Marcia Pickett, 972/480-2050