Centillium's Broadband Optical Access Solutions Selected by OF Networks for Global FTTP Deployments.

CHICAGO & FREMONT, Calif. -- Companies Collaborate as Japanese Service Providers Prepare for Mass Deployment of Passive Optical Networks

Centillium Communications, Inc. (Nasdaq:CTLM), a leading provider of broadband access solutions, today announced an ongoing collaboration with OF Networks Co., Ltd. for the development of Gigabit Ethernet Passive Optical Networks (known as EPON in North America and GE-PON in Japan) equipment, as the companies prepare to support global mass deployment of new, high-speed optical access networks.

Initially targeting Japanese network and service provider deployments of Fiber-to-the-Premises (FTTP), the companies have worked closely together to define the features and functions required for Japan. As a result, OF Networks will design and deliver gigabit Passive Optical Network (PON) equipment powered by Centillium's recently announced EPON System-on-a-Chip (SoC) solutions -- Colt(TM) (CT-TPSMT02) and Mustang(TM) (CT-TPSMN02). Designed as highly-integrated mixed-signal EPON protocol processors, Centillium's Colt and Mustang processors provide a cost-effective, end-to-end solution for Optical Network Units and Optical Line Terminal equipment.

"Having worked closely with Centillium on several proposals for large-scale optical access network deployments, we are very pleased to announce a formal relationship between our companies," said Masayuki Oohama, president of OF Networks. "By integrating Centillium's Colt and Mustang processors into our EPON infrastructure equipment, OF Networks can now provide Japanese and global carriers with gigabit access speeds in accordance with the emerging IEEE standard 802.3ah. In addition, Centillium's high level of technology integration enables us to offer our customers advanced, state-of-the-art features in both our central office and customer premises equipment."

Armando Pereira, general manager of Centillium's Optical Business Unit added, "We are very pleased to be working closely with OF Networks. The collaboration between our companies highlights the value of Centillium's R&D efforts and demonstrates the continued success of our diversification strategy. While this is a positive step forward for both Centillium and OF Networks, the real winners are the carriers and end-users that will benefit from the high-speed access our technology will provide, propelling residential broadband to a new level of performance."

About OF Networks

Established as a joint venture between Oki Electric Industry Co. Ltd. (TSE:6703) and Fujikura Ltd. (TSE:5803) and headquartered in Chiba Japan, OF Networks develops, manufactures and markets optical-centric broadband access systems and equipment, including gigabit Passive Optical Networking (PON) equipment, gigabit Media Converters, VDSL systems and access routers. OF Networks' products are provided to the Japanese and worldwide markets through their parent companies, Oki Electric and Fujikura.

About Centillium's Optical Business Unit

Centillium's Optical Business Unit is leveraging the company's expertise in mixed-signal, system-on-chip (SoC) technology to enable first-mile optical broadband networks with products that target the emerging fiber-to-the-premises (FTTP) market. The business unit will deliver solutions that offer higher integration, broader functionality, smaller footprints and lower power consumption for both central office (CO) and customer premises equipment (CPE). These products include optical transceiver chipsets to control the bi-directional traffic on a fiber cable; FTTP chipsets to manage the high-speed protocols between the CO and the CPE terminals; and broadband service processors to facilitate in-premises networking and delivery of voice, video and data to the end-users.

About Centillium Communications

Centillium Communications, Inc. is a leading provider of broadband access solutions with innovative systems-level products for the consumer, enterprise and service provider markets. The Company's high-performance and cost-effective infrastructure and service-enabler products give its customers the winning edge in broadband access. Centillium Communications' products include mixed-signal integrated circuits and related hardware and software applications for Digital Subscriber Line (DSL) and Optical Networking equipment deployed in central offices and customer premises and Voice over Internet Protocol (VoIP) products for carrier- and enterprise-class gateways and consumer telephony. The Centillium Communications headquarters is located at 215 Fourier Avenue, Fremont, CA 94539. Additional information is available at www.centillium.com.

Forward Looking Statements

Except for statements of historical fact, this release includes statements that are forward-looking statements within the meaning of U.S. Federal securities laws, including statements relating to Centillium's products targeting the FTTP market, optical access deployment and the market for FTTP products. Actual results may differ materially from those indicated by such forward-looking statements based on a variety of risks and uncertainties, including without limitation the risks and uncertainties relating to rate and breadth of deployment of broadband access in general and optical access and Centillium's technology solutions in particular; Centillium's ability to establish, continue and expand on its relationships with communications equipment manufacturers, such as OF Networks; and the successful development and market acceptance of Centillium's new products and technology. Centillium undertakes no obligation to update forward-looking statements for any reason. Information about potential factors that could affect Centillium's financial results is included in Centillium's Annual Report on Form 10-K and in other documents on file with the Securities and Exchange Commission.

Centillium Communications, Centillium's logo, Colt and Mustang are trademarks of Centillium Communications, Inc.