Broadcom Announces Multifunction 'Internet on a Chip' Products For Home, Office and Remote Networking; Gateway Computer is First PC OEM Vendor to Feature High Speed Home Networking.

Business Editors/High-Tech Writers

COMDEX Fall 2000

LAS VEGAS--(BUSINESS WIRE)--Nov. 13, 2000

Broadcom Corporation (Nasdaq:BRCM), the leading provider of integrated circuits enabling broadband communications, today announced its 'Internet on a Chip' strategy and new products to deliver several networking functions in a single chip package.

This strategy reduces the cost to OEMs of providing multiple options for Internet connectivity by broadband networking over existing home phoneline and conventional Ethernet while providing facilities for legacy V.90 dial up modem access. The net result is concurrent Internet access anywhere in the home or small office to all applications including shared Internet access to cable or DSL, streaming audio and video, multi-user Internet gaming, shared peripherals, and Voice over Internet Protocol (IP).

The first products delivering on the 'Internet on a Chip' strategy are the Broadcom(R) BCM4211 and BCM4413. The BCM4211 integrates HomePNA 2.0 16 Megabit per second (Mbps) home networking and V.90 software modem interfaces, enabling Internet communications connectivity at the lowest total system cost. The 3-in-1 BCM4413 integrates HomePNA 2.0 at 32 Mbps, 10/100 Ethernet MAC/PHY and V.90 software modem interfaces to provide a low-cost universal access solution for consumer and small office Internet communications connectivity. The BCM4413 also represents the most complete implementation of the HomePNA 2.0 specification to date as well as the third generation of Broadcom HomePNA silicon for the growing home networking market.

"Broadcom has a networked vision for our OEM customers and their users of delivering Internet connectivity everywhere and with any device," said Jeff Thermond, Vice President and General Manager of Broadcom's Home Networking Business Unit. "Our 'Internet on a Chip' strategy makes this vision a reality for the more than 25 million multiple PC households and millions of portable PC owners who connect to the Internet at home, on the road or in the office. Our first two system-on-a-chip home networking products deliver Internet connectivity at higher speeds and lower total cost. These chips represent the first of many advances from Broadcom that will provide increasing levels of integration at lower costs in this space."

The first shipping customer of Broadcom's 'Internet on a Chip' strategy is Gateway Computer, as jointly demonstrated with Gateway, America Online and Transmeta Corporation in New York City on November 10 (see "Gateway Launches 'Connected Home' With AOL, Broadcom and Transmeta" press release, Nov. 10, 2000). The four companies unveiled an array of new products and services that quickly accelerate the proliferation of both connected PCs and non-PC Internet appliances to deliver on the vision of the Internet-connected home today.

As part of the November 10th announcement, Gateway announced a strategic supply relationship with Broadcom as a key enabler of its Connected Home initiative. Gateway is already shipping Gateway Select and Performance consumer desktop PCs with Broadcom's BCM4211 silicon systems as standard equipment. This home networking system enables customers to easily and seamlessly connect Gateway PCs, Gateway Connected Music Players and Gateway Connected Touch Pad with Instant AOL Internet appliances to the Internet and each other via existing telephone lines and phonejacks in the home at broadband speeds of 10 Mbps and higher.

"We've said for some time that networking is a key element in our vision of the connected home, and we're proud to partner with a technology leader like Broadcom to help bring that vision to life here and now. The companies are very aligned in their strategic vision and look forward to working on several additional projects to bring this vision to millions of consumers," said Jeff Weitzen, President and Chief Executive Officer of Gateway.

The BCM4211 -- Internet Communications Connectivity at the Lowest

Total System Cost

The Broadcom BCM4211 PCI/MSI iLine10(TM) controller with integrated HomePNA 2.0 and V.90 software modem interfaces delivers Internet communications connectivity at the lowest total system cost. By integrating both HomePNA 2.0 and V.90, the BCM4211 dramatically lowers the cost per function. Integrated HomePNA 2.0 allows ubiquitous high-speed connectivity to cable, DSL and fixed-wireless broadband pipes throughout the house and eliminates hundreds of dollars in installation costs. The BCM4211 contains a PCI 2.2-compliant interface to both HomePNA 2.0 and V.90 functions for easy installation in PCs, as well as a flexible 16-bit Microprocessor Slave Interface (MSI) for embedded systems, such as Internet appliances and home gateways.

Other benefits include:

-- Fully integrated iLine10 MAC/PHY and V.90 modem device for use in PCI/Mini
PCI adapters, LAN on Motherboard and Internet appliances/broadband gateways

-- Each interface operates concurrently as a separate function, providing
independent communication channels while saving valuable OEM board space and
card slots

-- Modem function allows low-cost V.90 backup to broadband connection

-- WHQL-certified drivers for Windows 98, Windows ME and Windows 2000 for both
functions

-- All drivers are portable for embedded operating systems

The BCM4413 -- Low-Cost Universal Access Solution; Complete

Internet Communications Connectivity

The Broadcom BCM4413 PCI/MSI iLine32(TM) controller with integrated HomePNA 2.0, 10/100 Ethernet MAC/PHY and V.90 software modem interfaces provides complete Internet communications connectivity. The BCM4413 system-on-a-chip dramatically lowers the cost per function and allows ubiquitous high-speed connectivity to cable, DSL and fixed-wireless broadband pipes in the office, on the road or throughout the house. This chipset offers the industry's first iLine32 (32 Mbps) implementation of the HomePNA 2.0 standard by taking advantage of the specification's higher modulation characteristics -- actual maximum speed is an remarkable 32 Mbps on existing household phonelines.

Other benefits include:

-- Fully integrated iLine32 MAC/PHY, 10/100 Ethernet MAC/PHY and

V.90 modem device for use in PCI/Mini PCI adapters, LAN on

Motherboard, Internet appliances/broadband gateways and voice

adapters

-- Each of the three interfaces operates concurrently as a

separate function, providing completely independent

communication channels using a single PCI interrupt and card

slot

-- Low external BOM combined with the single chip integration

provides OEM cost reductions, while saving valuable OEM board

space and limited card slots

Pricing and Availability

The BCM4211 is available immediately and priced at $17.35 in 50,000 piece quantities. The BCM4413 is sampling to OEMs today and priced at $20.60 in 50,000 piece quantities. Another component of Broadcom's 'Internet on a Chip' strategy is the BCM3352 Cable Modem Home Gateway (see "Broadcom Adds VoIP Telephony and Home Networking Technology to Industry-Leading DOCSIS Cable Modem Chip" press release dated Sept. 19, 2000). The BCM3352 is the first single-chip Data Over Cable Service Interface Specification (DOCSIS) cable modem chip with integrated iLine32 communications for a total broadband home gateway system-on-a-chip that also offers primary-line IP cable telephony.

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 949/450-8700 or at www.broadcom.com.

Safe Harbor Statement of 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 BCM4211, BCM4413, and BCM3352 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 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; general economic conditions and specific conditions in the markets we address; and other factors.

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