Centillium Communications Delivers First Affordable Security and Wirespeed VPN to Business DSL Market.

Business Editors/High-Tech Writers

COMNET 2002

FREMONT, Calif.--(BUSINESS WIRE)--Jan. 29, 2002

Centillium's Palladia(TM) 300 SecureDSL Chipset Combines

ADSL Router, Networking and Security

Centillium Communications, Inc. (Nasdaq:CTLM), innovator of broadband communications technology, today announced the newest member of its Palladia chipset family, the Palladia 300 SecureDSL Network Router. Centillium's Palladia 300 product combines asymmetric digital subscriber line (ADSL), networking and security features into a single chipset, offering service providers business class security routers for small- to medium-size businesses.

Centillium's revolutionary chipset fills an important market need for both carriers and Internet service providers (ISPs). By integrating the Palladia 300 chipset, original equipment manufacturers (OEMs) can deliver business class security and wirespeed virtual private network (VPN) routers that enable ISPs to realize enhanced revenues by offering managed security services to small and medium businesses.

Centillium Communications' Palladia 300 chipset's unique design includes security features such as a firewall, denial of service attack prevention and a secure wirespeed VPN. The security processor and ATM Adaptation Layer 5 (AAL5) accelerator (an accelerator that provides higher throughput) are hardwired into the chipset, ensuring consistent high data throughput and dependability required for a business network.

"Small businesses are increasingly reliant on the Internet and require an easy-to-use premises networking solution that integrates security, the single most important networking issue facing businesses today," said Faraj Aalaei, chief executive officer and co-founder of Centillium Communications, Inc. "With the Palladia 300 chipset, OEMs can offer service providers a simple, secure network router with critical hardwired security functions and high-speed ADSL access services that meet the needs of small business users."

The total size of the security market at the systems level is expected to grow despite slumps in other areas of the networking market. According to International Data Corp. (IDC), security services are expected to exceed $17 billion by 2004, with an annual growth rate of 25 percent.

"Security is a major issue for any company, but high costs are a key obstacle for small and medium businesses. Centillium Communications' innovative Palladia 300 Secure Network Router chipset solves many of the problems for this market segment with its simplified design and resulting low costs with high performance to the end user," said Jon Cordova, an analyst at Infonetics Research. "Centillium's Palladia 300 Secure Network Router chipset is in an excellent position to take advantage of a growing ADSL market and help customer premise equipment (CPE) vendors integrate the security functionality in a simple form factor that end users are demanding."

About Centillium Communications

Centillium Communications, Inc. is combining technical innovation and customer commitment to make broadband communications a market reality. Centillium consistently delivers value to its customers by providing broadband networking systems for applications across all market segments. The company designs and markets communications chipset solutions for central office equipment, digital loop carrier (DLC) line cards, and customer premise equipment for Digital Subscriber Line (DSL), Voice over Packet (VoP) and Premise Networking. The Centillium Communications headquarters are located at 47211 Lakeview Blvd., Fremont, CA 94538. Additional information is available at www.centillium.com.

Forward Looking Statements

Except for historical information contained in this press release, the foregoing contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those indicated by such forward-looking statements based on a variety of risks and uncertainties, including the risks and uncertainties relating to actual quantities and timing of any orders received under any contract and the successful development and market acceptance of Centillium's new products. The company assumes no obligation to update these forward-looking statements to reflect events or circumstances after the date hereof. Information about potential factors that could affect Centillium's financial results is included in Centillium's most recent Annual Report on Form 10-K, and in our most recent Form 10-Q, which can be viewed at the Securities and Exchange Commission's website at www.sec.gov.

Note to Editors: Centillium Communications, Palladia and the Centillium logo are trademarks of Centillium Communications.

All other products or service names mentioned herein are the property of their respective owners.