Amati and Motorola Announce Next Step in ADSL DMT Licensing Agreement; Decision Capitalizes on Amati's Leadership in ADSL DMT Technology and Motorola's Expertise in Mixed-Signal Technology.SAN JOSE San Jose, city, United States San Jose (sănəzā`, săn hōzā`), city (1990 pop. 782,248), seat of Santa Clara co., W central Calif.; founded 1777, inc. 1850. , Calif.--(BUSINESS WIRE)--April 29, 1996--Amati Communications Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :AMTX) and Motorola today jointly released plans by Amati to develop Asymmetric Digital Subscriber Line/Discrete Multi-Tone (ADSL/DMT) modem products based on the Motorola ADSL See DSL. ADSL - Asymmetric Digital Subscriber Line chip. The combination of Amati's DMT See DSL. expertise and Motorola's semiconductor experience will permit the design of cost-effective, standards-based ADSL solutions for interactive multimedia via plain old telephone service (POTS) lines. This announcement is the result of a long-standing relationship between the two companies. In April 1995, the initial agreement between Amati and Motorola for the licensing of the Amati patented DMT technology was announced. Prior to that, the companies worked together to make DMT the industry standard. The Motorola ADSL IC is a highly integrated chip solution incorporating DMT and is designed to lower per line costs for high speed over copper applications. Amati expects that its new ADSL/DMT products will cost-effectively provide a wide range of interactive services to the home over existing copper wiring. These services can include broadcast video, video-on-demand, interactive services, Internet access See how to access the Internet. and work-at-home applications. Amati has been a leader in providing modem technology in many early ADSL/DMT trials and tests. The new Motorola-based Amati products are expected to meet the established DMT standards set by the ANSI (American National Standards Institute, New York, www.ansi.org) A membership organization founded in 1918 that coordinates the development of U.S. voluntary national standards in both the private and public sectors. It is the U.S. member body to ISO and IEC. and ETSI (European Telecommunications Standards Institute, Sophia Antipolis technical park, Nice, France, www.etsi.org) A non-profit membership organization founded in 1988, dedicated to standardizing information and communication technologies (ICT) throughout Europe. committees. Amati owns the patents on the standards for implementation of ADSL/DMT. Based on the license agreement between Amati and Motorola and with the support of the Amati design team, Motorola was able to announce the release of an ADSL/DMT integrated circuit integrated circuit (IC), electronic circuit built on a semiconductor substrate, usually one of single-crystal silicon. The circuit, often called a chip, is packaged in a hermetically sealed case or a nonhermetic plastic capsule, with leads extending from it for to the market in early 1997. It will be built specifically to support DMT standard requirements. The new Amati ADSL/DMT products will be developed for several high speed applications: a high-speed ADSL/DMT modem for video-on-demand and broadcast video services; a stand-alone modem with integrated data interface; a shelf-based ADSL concentrator for high-speed data service access, and an ADSL/DMT core module that will enable ADSL/DMT technology to be incorporated into existing network equipment, allowing network equipment manufacturers to easily add ADSL/DMT compatibility. Amati President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. James Steenbergen said, "The agreement with Motorola underscores our commitment to accelerating the use of high-speed ADSL technology for data access over existing copper networks. We are convinced that Motorola's technology combined with our DMT product experience will significantly reduce future user costs and therefore greatly enable ADSL/DMT as a viable technology for delivery of interactive services to local loop customers." Debbie Salle, ADSL Business Development Manager for Motorola's MOS (1) (Metal Oxide Semiconductor) See MOSFET. (2) (Mean Opinion Score) The quality of a digitized voice line. It is a subjective measurement that is derived entirely by people listening to the calls and scoring the results from Digital-Analog IC Division, said, "Motorola and Amati believe that DMT offers superior performance and can be implemented at a lower cost than competing technologies. Both companies are committed to this technology and intend to be strong players in ADSL." The new Amati products, which are expected to be released starting in 1997 for initial tests and trials with service providers, reflect the next generation of the technology presently incorporated into Amati's existing Overture 8 modem design. The Overture 8 has most recently been used in an international 6 Mbps trial in Australia for a service offering broadcast video to the home by Telstra (Telecom Australia). These tests involve transmission over copper cable of broadcast quality, real-time video at distances greater than 10,000 feet. The Overture 8 is capable of data transmission rates greater than 6 Mbps downstream and up to 640 Kbps of upstream data transport. Amati is also participating in tests of 2 Mbps and 4 Mbps video-on-demand (interactive video) services being offered by PTT's in Europe and the Asia-Pacific with companies including Philips, Italtel, Tadiran, and Samsung. The new generation of Amati products is also intended to cost-effectively handle these relatively low-speed video requirements as well. As part of the growing demand for high speed services for on-line data access, Amati is participating in trails such as the GTE GTE General Telephone & Electronics GTE Génie Thermique et Énergie (French) GTE Gas Turbine Engine GTE Global Tropospheric Experiment GTE Geothermal Energy GTE Gas Turbine Efficiency plc (Sweden & USA) Internet access trial. As a strategic participant in such tests using ADSL/DMT for high speed data services, Amati believes the Motorola-based products will contribute to the growth of the Internet services marketplace by combining higher bandwidth availability with lower subscriber costs. Having 1995 worldwide sales of $8.54 billion, Motorola's Semiconductor Products Sector is the largest U.S.-based broad line supplier of semiconductor solutions. Motorola is one of the world's leading providers of communications, semiconductors, and advanced electronic systems, components, and services. Motorola's 1995 sales were $27 billion. Amati is a leading developer of advanced transmission equipment utilizing DMT technology for the ADSL, Very High-Speed Digital Subscriber Line See DSL. (communications, protocol) Digital Subscriber Line - (DSL, or Digital Subscriber Loop, xDSL - see below) A family of digital telecommunications protocols designed to allow high speed data communication over the existing copper telephone lines between end-users and (VDSL See DSL. VDSL - Very high bit-rate Digital Subscriber Line ) and cable modem markets. Amati is also a provider of network connectivity systems for the internetworking and OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and marketplaces. The company's connectivity products include local area network gateways, client based workstation software and network data communications interfaces. -0- Note to Editors: 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 a number of risks. Please see the Company's prospectus/proxy statement dated October 16, 1995, and other reports files pursuant to the Securities Exchange Act of 1934 for additional disclosure regarding such risk factors. CONTACT: Amati Communications Benjamin W. (Tac) Berry, 415/903-2398 or Simon/McGarry Public Relations public relations, activities and policies used to create public interest in a person, idea, product, institution, or business establishment. By its nature, public relations is devoted to serving particular interests by presenting them to the public in the most Carol Felton, 408/746-0911 clfelton@aol.com or Capital Relations, Inc. for Motorola Kathleen Gawel or Lisa Zylstra, 805/494-0830 gawel@caprel.com |
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