Broadcom's Dual Receiver Chip Embeds Cable Modem Function into Advanced Set-top Boxes.

Business/High Tech Editors

IRVINE, Calif.--(BUSINESS WIRE)--May 3, 2000

Transforms the Set-top Box into a Fully Interactive, Two-Way

Residential Gateway for the Delivery of Video, Voice and Data

Broadcom Corporation (Nasdaq:BRCM), the leading provider of integrated circuits enabling high-speed broadband communications to and throughout the home and business, continues its leadership position in digital cable set-top box technology with the announcement today of the first set-top box transmission chip that will enable consumers to experience the convergence of advanced, next-generation interactive two-way television.

This chip will turn television set-top boxes into advanced two-way communications devices, allowing simultaneous access to hundreds of digital television channels and broadband Internet access. Additionally, this chip will enable entirely new types of media programming seamlessly blending broadcast video, interactive content and commerce. This enables content providers and advertisers to generate additional information and immediate online transactions, while providing consumers the ability to instantly customize the content that they receive based on their own personal preferences.

Providing further integration and performance at the silicon level, Broadcom's chip gives cable manufacturers a fully integrated, flexible front-end design solution compliant with the industry's most widely used cable modem standards and conditional access systems. It is the first single chip to integrate two digital receivers and a cable modem, enabling manufacturers to cost effectively build advanced interactive set-top boxes that can support the simultaneous viewing of high-quality television and video programming and Internet-based content -- web site, email, and e-commerce services. These advanced set-top boxes can also now serve as broadband residential gateways for distributing Voice over Internet Protocol (VoIP) telephony, video and data throughout the home.

"This device is the first set-top box chip to integrate cable modem functionality into the front-end of advanced interactive set-top boxes," said Rich Nelson, Broadcom's Director of Marketing, Cable-TV. "This device enables a cost-effective transition from one-way broadcast TV to fully two-way interactive TV."

"IDC believes that we are at the front end of a significant rollout period for interactive set-top boxes and services," said Kevin Hause, Director of IDC's Consumer Device research. "By the end of 2004, IDC forecasts that over 81 million interactive set-top boxes will be installed worldwide. Interactive capabilities could represent a potent growth opportunity for service providers in search of market differentiation and new revenue sources."

"Broadcom has already demonstrated its leadership in cable modem and cable set-top box technologies. With this new chip, the company leverages its expertise to enable an integrated, interactive solution that enhances the consumer's overall viewing experience and will ultimately drive mass market deployment of advanced, interactive set-top boxes," said Xavier Pucel, Semiconductor Research Manager with IDC.

The Broadcom(R) BCM3250 Advanced Set-top Box Transmission Chip combines Broadcom's core competencies in both digital cable set-top box and cable modem technology, providing manufacturers with a complete front-end solution that substantially reduces the bill-of-material costs of advanced set-top box designs. It incorporates support for both DOCSIS and DAVIC-based cable systems, enabling a single set-top box design to be used in networks throughout the world. This chip provides for interactive services and conditional access, as well as two in-band 64/256-QAM receivers, an out-of-band QPSK receiver and a QPSK/16-QAM upstream transmitter. All of the QAM transceivers comply with the major physical layer (PHY) standards used in cable plants around the world. The device also includes a peripheral unit for common set-top box devices such as IR remote, IR keyboard, LEDs and keypad. For design flexibility, the BCM3250 can be accessed via a processor interface or a Peripheral Component Interconnect (PCI) bus.

Broadcom is also announcing today the BCM93725 Advanced Set-top Box Home Gateway Reference Design, which is based on the BCM3250 and the Broadcom BCM7020 2D/3D Video-Graphics Chip for High Definition TV (HDTV)/ Standard Definition TV (SDTV). These two chips, combined with a high performance microprocessor, represent the industry's most integrated solution for advanced set-top boxes.

The reference platform includes a number of devices that enable the set-top to be used as a gateway for the delivery of broadband services to and throughout the home. Supporting components include Broadcom's HomePNA 2.0 iLine10(TM) chipset, capable of 10 Mbps transmission of voice, video and data over existing standard telephone lines, a Voice over IP (VoIP) module supporting 4 lines of compressed voice, a 10/100 Mbps Ethernet controller, and an IEEE 1394 interface for connection to consumer electronic products. For networks requiring telephony return path, the BCM93725 includes a V.90 softmodem. In addition, the reference design is configured for an internal Hard Disk Drive (HDD) for digital video recording and playback.

The BCM93725 Reference Design supports simultaneous viewing of television programming and Internet content on the screen in either HDTV or SDTV formats. This capability provides consumers with a true interactive environment, allowing them to access Internet content, such as a web site, while simultaneously watching a television program. Consumers can also access email as well as have video teleconferencing capabilities from their television.

In addition, the BCM93725 includes the Point of Deployment (POD) interface, a part of the OpenCable(TM) transmission standard, which will help expedite the retail distribution of cable set-top boxes.

The BCM3250 is packaged in a 256-pin TBGA and is priced at $45 in 100K quantities. The chip is now available in sample quantities.

About Broadcom

Broadcom Corporation is the leading provider of highly integrated silicon solutions that enable broadband digital transmission of voice, video and data to and throughout the home and within the business enterprise. Using proprietary technologies and advanced design methodologies, the company designs, develops and supplies integrated circuits for a number of the most significant broadband communications markets, including the markets for cable set-top boxes, cable modems, high-speed office networks, home networking, Voice over Internet Protocol (VoIP), residential broadband gateways, direct broadcast satellite and terrestrial digital broadcast, and digital subscriber line (xDSL). Broadcom is headquartered in Irvine, Calif., and may be contacted at 949/450-8700 or at www.broadcom.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:

This release may contain forward-looking statements based on our current expectations, estimates and projections about our industry, management's beliefs, and certain assumptions made by us. Words such as "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates," "may," "will" and variations of these words or similar expressions are intended to identify forward-looking statements. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Therefore, our actual results could differ materially and adversely from those expressed in any forward-looking statements as a result of various factors.

Important factors that may cause such a difference for Broadcom in connection with the BCM3250 and BCM93725 products include, but are not limited to, the timing and successful completion of technology and product development through volume production; the rate at which our present and future customers and end-users adopt Broadcom's technologies and products in the markets for advanced set-top box products; delays in the adoption and acceptance of industry standards in the foregoing markets; the timing of customer-industry qualification and certification of our products and the risks of non-qualification or non-certification; the timing, rescheduling or cancellation of significant customer orders; the loss of a key customer; the volume of our product sales and pricing concessions on volume sales; silicon wafer pricing and the availability of foundry and assembly capacity and raw materials; the qualification, availability and pricing of competing products and technologies and the resulting effects on sales and pricing of our products; intellectual property disputes and customer indemnification claims; fluctuations in our manufacturing yields and other problems or delays in the fabrication, assembly, testing or delivery of our products; our ability to specify, develop, complete, introduce, market and transition to volume production new products and technologies in a timely manner; the effects of new and emerging technologies; the effectiveness of our product cost reduction efforts; the risks of producing products with new suppliers and at new fabrication and assembly facilities; problems or delays that we may face in shifting our products to smaller geometry process technologies and in achieving higher levels of design integration; the risks and uncertainties associated with our international operations; our ability to retain and hire key executives, technical personnel and other employees in the numbers, with the capabilities, and at the compensation levels needed to implement our business and product plans; changes in our product or customer mix; the quality of our products and any remediation costs; the effects of natural disasters and other events beyond our control; the level of orders received that can be shipped in a fiscal quarter; potential business disruptions, claims, expenses and other difficulties resulting from "Year 2000" problems in computer-based systems used by us, our suppliers or our customers; general economic conditions and specific conditions in the markets we address; and other factors.

Our recent Annual Report on Form 10-K, forthcoming Quarterly Report on Form 10-Q, recent Current Reports on Form 8-K, and other Securities and Exchange Commission filings discuss some of the important risk factors that may affect our business, results of operations and financial condition. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.

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