Centillium Communications to Acquire vEngines, a Leading Developer of Voice-Over-Packet Single Chip Solutions.Business Editors/High-Tech Writers FREMONT, Calif.--(BUSINESS WIRE)--Oct. 5, 2000 Combination of vEngines' vIPER and Centillium's ACE Architectures Increases Centillium's Lead in the Voice-Data Convergence Market Centillium Communications, Inc. (Nasdaq:CTLM CTLM Imaging Computed tomography laser mammography A diagnostic technique using lasers to produce a 3-D cross-sectional image of the breast without x-rays. See Mammography. ) today announced the acquisition of privately held vEngines, Inc. for total consideration of approximately $43 million of newly issued Centillium common stock and stock options. The transaction will be accounted for as a purchase and is expected to close in December 2000. vEngines develops high-density voice processing The computerized handling of voice, which includes voice store and forward, voice response, voice recognition and text to speech technologies. semiconductor products which bridge circuit switched voice and data networks. This leading technology compresses voice traffic, converting it into digital packets, which can then travel on data networks. vEngines' targeted customer base includes communications equipment manufacturers that provide carrier and access voice gateways and remote access servers. With this acquisition, Centillium strengthens its position as the market leader in supporting true convergence The angle at which one meridian is inclined to another on the surface of the Earth. See also convergence. of circuit switched voice networks with Asymmetric Transfer Mode (ATM), Internet Protocol See Internet and TCP/IP. (networking) Internet Protocol - (IP) The network layer for the TCP/IP protocol suite widely used on Ethernet networks, defined in STD 5, RFC 791. IP is a connectionless, best-effort packet switching protocol. (IP) and Frame Relay networks. Centillium's Entropia products enable any network to interwork with any network, so that service providers can utilize existing data networks for voice traffic with no interruption in service or reduction in quality to the end user. In addition to the support for true convergence, Centillium's Entropia product supports 256 channels of voice processing as well as multiplayer processing for ATM, IP and Frame Relay all in the same device. As a result, service providers can transmit high volumes of revenue generating voice traffic on the more efficient and cost effective data networks, with no degradation in quality of service. "The acquisition of vEngines further extends Centillium's leadership in the Voice-Over-Packet integrated circuit market," said Faraj Aalaei, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Centillium Communications. "By delivering the Entropia chip, Centillium has already established itself as the market leader with the most integrated, highest density solution. The acquisition of vEngines will accelerate the introduction of our next generation products that will allow us to sustain our market lead." "The combination of vEngines' vIPER architecture with Centillium's ACE (Asynchronous Refers to events that are not synchronized, or coordinated, in time. The following are considered asynchronous operations. The interval between transmitting A and B is not the same as between B and C. The ability to initiate a transmission at either end. Computing Engine) architecture in the Entropia Voice-Over-Packet product line will substantially enhance Centillium's industry-leading solutions for the high-growth voice-data convergence market," said Basant Khaitan, CEO and co-founder of vEngines. "vEngines' highly experienced engineering teams in the U.S. and India will serve as a base for further expansion of Centillium Communications' integrated circuit and associated software design efforts." About vEngines, Inc. Basant Khaitan and Shankar Narayan founded vEngines, Inc. to develop leading edge voice processing integrated circuits for emerging Voice-Over-Packet networks. The Company has developed the vIPER architecture that offers an unmatched level of integration and port density. vEngines, which currently employs 28 professionals, has development operations in Santa Clara, California Santa Clara, California (IPA: /ˌsæntəˈklærə/) , founded in 1777 and incorporated in 1852, is a city in Santa Clara County, in the U.S. state of California. and Bangalore, India. ICICI ICICI Industrial Credit and Investment Corporation of India Ventures, INC3Ventures and several prominent Silicon Valley entrepreneurs funded the Company. About Centillium Communications Centillium Communications, Inc. is combining technical innovation and customer commitment to make broadband communications a mass-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, DLC (1) (Data Link Control) See data link and OSI. (2) (Data Link Control) The data link layer protocol (layer 2) that is used in IBM's SNA networking. See SNA, data link protocol and Microsoft DLC. line cards, and customer premise equipment for Digital Subscriber Line See DSL. (communications, protocol) Digital Subscriber Line - (DSL, or Digital Subscriber Loop, xDSL - see below) A family of digital telecommunications protocols designed to allow high speed data communication over the existing copper telephone lines between end-users and (DSL DSL in full Digital Subscriber Line Broadband digital communications connection that operates over standard copper telephone wires. It requires a DSL modem, which splits transmissions into two frequency bands: the lower frequencies for voice (ordinary ), home networking and Voice-Over-Packet. Centillium Communications, Inc. is 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 the contract and the successful development and market acceptance of Centillium's new products. Information about potential factors that could affect Centillium's financial results is included in Centillium's prospectus and will be included in Centillium's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and Quarterly Reports on Form 10-Q Form 10-Q See 10-Q. , which will be filed with the Securities and Exchange Commission. Note to Editors: All other products or service names mentioned herein are the property of their respective owners. |
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