Broadcom Announces European Launch of First EuroDOCSIS Residential Gateway Chip with VoIP Telephony and Home Networking Technology.

Business Editors/High Tech Writers

Broadband Communications Europe Show 2000

LONDON--(BUSINESS WIRE)--Oct. 18, 2000

Broadcom (Nasdaq:BRCM)

Revolutionary IC Offers European Cable Operators Open-Standards-Based

Delivery of Primary Line VoIP Telephone, High-Speed "Always On"

Internet Access, Streaming Audio and Video and Home Networking

Services

Broadcom Corporation (Nasdaq: BRCM), the leading provider of integrated circuits enabling broadband communications, today announced the European launch of the industry's most advanced single-chip EuroDOCSIS residential gateway chip, with features including Voice over Internet Protocol (VoIP) telephony, home networking, and IP security technology.

The Broadcom(R) BCM3352 is the world's first European Data Over Cable Service Interface Specification (EuroDOCSIS) residential gateway that directly addresses primary-line IP cable telephony. The comprehensive capabilities of this highly integrated chip will pave the way for European cable operators to transition into multi-service broadband providers of multi-line VoIP telephony, high-speed, always-on Internet access, audio and video streaming, and secure networking of PCs and peripherals throughout the home.

The EuroDOCSIS standardization process is moving forward rapidly, as evidenced by the approval on October 6th of the European Telecommunications Standards Institute (ETSI) of a DOCSIS Radio Frequency Interface, including EuroDOCSIS. The ratification reinforces European commitment to this internationally compatible standard, as already approved by the equivalent North American body, the Society for Cable Television Engineers-Digital Subscriber Services.

In September, Broadcom demonstrated its clear leadership position in EuroDOCSIS cable modem technology when tCom Labs in Ghent, Belgium announced its latest round of certifications. Major manufacturers who received EuroDOCSIS certification for Cable Modem Termination Systems (CMTS) and cable modems based on Broadcom chips include 3Com, Askey, Dassault, Ericsson and Motorola.

"High-speed Internet access over cable is exploding in Europe," said Tim Lindenfelser, Vice President and General Manager of Broadcom's Broadband Communications Business Unit. "With its support for EuroDOCSIS and DOCSIS, the BCM3352 will usher in broadband IP telephone and data connections as regular, simple-to-use services offered by cable companies worldwide."

Andre du Croix, General Manager of Deltakabel Telekom, a leading provider of cable modem solutions and part of Lucent Technologies, commented, "Primary line VoIP telephony represents a tremendous growth opportunity for cable and the advanced capabilities and low power consumption of the BCM3352 will provide just the catalyst the European market needs for rapid deployment of VoIP services."

Frost & Sullivan's "World IP Telephony Equipment Market" report predicts that the world market for IP equipment will grow from US$279 million in 1998 to US$10 billion by 2005. The report forecasts that 32% of this revenue from IP equipment will come from European markets.

"The BCM3352 is providing MetaVector Technologies with the leading edge technology to meet the cost, power, and feature requirements for our cable modem products," said Jos Huybrighs, Technology Manager of MetaVector Technologies. "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."

The BCM3352 Four-Channel QAMLink(R) VoIP/Home Networking Residential Broadband Gateway achieves an unprecedented level of integration. It combines Broadcom's industry-leading and proven system-on-a-chip expertise in DOCSIS/EuroDOCSIS broadband cable modems, HomePNA 2.0 home networking, a 200 MIPS VoIP Digital Signal Processor (DSP), a 4-channel IP optimized voice CODEC, and IP security technology into a single-chip solution.

Integrated into this chip, Broadcom's 32 megabit per second (Mbps) iLine20(TM) HomePNA technology expands 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), carrier access, 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 1-949-450-8700 or at www.broadcom.com. Broadcom customers in Europe may contact us in The Netherlands at 31-30-608-4500 or in the UK at 44-114-241-4832.

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 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, recent and forthcoming 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.

Note to Editors: Broadcom(R), QAMLink(R), iLine20(TM) and the pulse logo are trademarks of Broadcom Corporation and/or its affiliates in the United States and certain other countries. All other trademarks mentioned are the property of their respective owners.