Broadcom Adds VoIP Telephony and Home Networking Technology to Industry-Leading DOCSIS Cable Modem Chip.

Business Editors and Technology Writers

IRVINE, Calif.--(BUSINESS WIRE)--Sept. 19, 2000

Revolutionary IC Enables Cable Operators Worldwide to Effectively

Deliver Primary-Line VoIP Telephone, High-Speed "Always On" Cable

Modem and Home Networking Services Using a Single Device

Broadcom Corporation (Nasdaq:BRCM), the leading provider of integrated circuits enabling broadband communications, today announced the BCM3352, the world's first single-chip Data Over Cable Service Interface Specification (DOCSIS) cable modem solution that addresses the ultra low power, extreme temperature, and 99.999% reliability requirements for primary-line Internet Protocol (IP) cable telephony.

"This breakthrough single-chip solution represents a significant step in the creation of the residential broadband gateway, a device that will enable entire new classes of consumer services and applications, from basic phone service to new household information appliances," said Dr. Henry T. Nicholas III, President and CEO of Broadcom Corporation. "Our chip now opens the way for the deployment of low-cost broadband IP gateways, permanently attached to the side of homes, that deliver four lines of primary line digital telephone, IP video, home networking, and `always on' cable modem Internet services over cable systems and home phone lines."

The Broadcom(R) BCM3352 Four-Channel QAMLink(R) VoIP/Home Networking Residential Broadband Gateway IC will usher in broadband IP cable telephone, home networking, and broadband data connections as regular, simple to use, services offered by cable companies worldwide. Integrated HomePNA 2.0 technology eliminates wiring for additional telephone lines and high-speed data connections by providing a broadband connection over every existing phone line, and to every telephone jack connection in the home.

"The BCM3352 will make digital broadband telephone and high-speed data services as easy as plugging into the existing telephone line," said Tim Lindenfelser, Vice President and General Manager of Broadcom's Broadband Communications Business Unit. "Now every cable operator in the world can provide easy to manage "plug and play" access to broadband cable services through the use of this DOCSIS cable modem IC."

"The future of cable modems will become a significant opportunity as the integrated modem chips that are used in this customer premise equipment is projected to grow from $140 million in 1999 to $570 million in 2003," said Sean Lavey, Senior Research Analyst with IDC. "Broadcom's introduction of the BCM3352 is a leading example of the type of advanced integration that will continue to occur in order to jumpstart the voice-enabled cable modem and home networking market."

"Broadcom's BCM3352 is at the forefront in the technology race for integrated broadband VoIP and home networking gateways," said Dan Moloney, Senior Vice President and General Manager of the IPNS Business Unit of the Motorola Broadband Communications Sector. "This highly integrated chip will help to enhance manufacturability and enable us to meet the industry price targets for our IP telephony products while providing superior performance and features."

The Broadcom BCM3352 achieves an unprecedented level of integration. It combines Broadcom's industry-leading and proven System-on-a-Chip expertise in DOCSIS broadband cable modems, HomePNA 2.0 home networking, a 200 MIPS Voice over Internet Protocol (VoIP) Digital Signal Processor (DSP), a 4-Channel IP optimized voice CODEC, and IP security technology into a single-chip solution. The BCM3352 also supports the EuroDOCSIS specification, enabling customers to deploy products in the European market.

In addition, the BCM3352 attains the ultra low-power, high-performance, and outdoor temperature requirements outlined in the PacketCable(TM) specification and by major Multiple System Operators (MSOs), providing cable operators with the affordable gateway solution they are seeking for VoIP telephony, high-speed Internet service, home networking, and other IP services.

"The BCM3352 is providing Arris Interactive with the leading edge technology to meet the cost, power, and feature requirements for our PacketPort line of cable telephony products," said Oscar Rodriguez, COO and President of Arris Interactive. "Broadcom's unique ability to successfully integrate all of these technologies into a single chip now makes it economical for wide-scale deployment of IP telephony and home networking gateways."

"A BCM3352-based product will enable Comcast to offer a complete set of IP Broadband services to our customers with a single product," said Steve Craddock, Vice President, New Media Development of Comcast Corporation. "Primary line VoIP telephony is a huge growth opportunity for Cable and the BCM3352 is enabling this to be a reality."

The BCM3352 chip integrates Broadcom's 32 megabit per second (Mbps) iLine20(TM) HomePNA technology to expand the bandwidth capacity of existing home telephone wiring, enabling consumers to receive multiple digital services from their cable operator without any additional wiring. Real-world applications that will benefit from the single-chip solution include:

-- Lower Cost Digital Local and Long Distance Telephone Service Using Cable

-- Four (4) Cable Telephone Lines using one (1) telephone wire

-- Always-On "Plug and Play" high-speed Broadband Internet access on any phone
line and any telephone jack

-- "Work at Home" using the integrated advanced IP Security (IpSec) VPN
Processor

-- Multiple PC Networking

-- PC Video Conferencing

-- PC Telephony

-- Printer Sharing

-- Broadband IP Video Services

-- Networked MP3 Digital Audio

-- Home Security Monitoring

-- Home Energy Management

-- Wireless PC, Webpad, and Phone Connectivity

-- Firewall Internet Content Filtering

-- Home Network and Internet Gaming

The BCM3352 is currently sampling and is included as part of the BCM93352V reference design. The chip is priced at $59 in 100K quantities and is offered in a 484-pin plastic BGA package.

About Broadcom

Broadcom Corporation is the leading provider of highly integrated silicon solutions that enable broadband digital transmission of voice, video, and data. 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 local, metropolitan and wide area networks, home networking, Voice over Internet Protocol (VoIP), residential broadband gateways, direct broadcast satellite and terrestrial digital broadcast, optical networking, digital subscriber lines (xDSL) and wireless communications. Broadcom is headquartered in Irvine, Calif., and may be contacted at 949/450-8700 or at www.broadcom.com.

Safe Harbor Statement of Broadcom Corporation under the Private SecuritiesLitigation 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 BCM3352 product 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 cable modems, VoIP telephony and home networking; 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 the manufacturing yields of our third party semiconductor foundries and other problems or delays in the fabrication, assembly, testing or delivery of our products; our ability to specify, develop or acquire, 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 residual "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 Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, recent Current Reports on Forms 8-K and 8-K/A, 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.

Broadcom(R), QAMLink(R), iLine20(TM) and the pulse logo are trademarks of Broadcom Corporation and/or its subsidiaries in the United States and certain other countries. PacketCable(TM) is a trademark of CableLabs Inc. All other trademarks mentioned are the property of their respective owners.