ClariPhy Communications Enters 10G Telecom Market with Advanced Maximum Likelihood Sequence Detection Technology.

Integrated CMOS MLSD Engine Creates Large Market Expansion Opportunity

IRVINE, Calif. -- ClariPhy Communications, Inc., a fabless semiconductor company specializing in high speed communications ICs, today announced that it has expanded its market focus to include 10G telecommunications (telecom) networks. ClariPhy's Maximum Likelihood Sequence Detection (MLSD) based Electronic Dispersion Compensation (EDC) engine, implemented in a single-chip CMOS form factor, is perfectly suited to enable data rate increases from 2.5G to 10G in carrier networks cost-effectively and without sacrificing performance or reach. Based on estimates from industry analyst firm CIR, optical transponder shipments are expected to grow by almost 40 percent per annum over the next five years, with the total dispersion compensation market reaching $755M by 2012.

Carriers today seek to upgrade their optical networks to 10G while simultaneously improving performance and lowering the overall cost of installing and maintaining these networks. EDC technology is being rapidly integrated into 10G equipment based on its ability to improve performance through impairment mitigation. Specifically, MLSD-based EDC enables the use of lower cost optical components and extends the reach of optical links through the compensation of impairments found in the components and fiber optic cabling.

Lawrence Gasman, CIR President and Chief Components Analyst commented: "In our recent report 'Opportunities in Dispersion Compensation: Electronic, Optical and Tunable,' we highlight the increasing importance of dispersion compensation and the need for higher performing dynamic dispersion compensation. EDC components including ClariPhy's CMOS MLSD device have a compelling proposition and are well timed for the emerging opportunity in metro, long haul, and ultra long haul networks."

According to ClariPhy's CEO, Dr. Paul Voois, "Our engineering team has extensive experience in telecom product development. Entering the telecom market represents a logical expansion of our initial enterprise focus, while building upon our core value proposition of using CMOS-based digital signal processing to reduce the cost and improve the performance of optical communications. We have demonstrated significant performance advantages in enterprise applications and we expect to do the same in the telecom space."

ClariPhy has completed product evaluations with the industry's leading optical transponder vendors. Based on this activity, ClariPhy has defined a family of products which will enable vendors to leverage MLSD to complement the technologies they have pioneered such as advanced lasers and modulators, advanced modulation techniques, and emerging transponder form factors for the diverse set of telecom market segments.

"Bookham has pioneered Indium Phosphide modulator technology over many years," said Adam Price, Director of Product Line Management at Bookham. "We believe technology advancements, rapid maturation, and cost reduction is the recipe for success in the optical communications market. We commend ClariPhy on developing a low cost CMOS MLSD IC that complements technologies similar to our own advanced product developments."

"Sumitomo Electric Industries  (SEI) has a long heritage of pioneering many optical technologies over the past two decades," said Hideaki Nishizawa, General Manager, Transmission Devices Laboratories of SEI. "Looking forward, we see great promise for the use of MLSD based EDC devices with our 10G products and support ClariPhy's development efforts."

ClariPhy will attend ECOC 2007 held in Berlin, Germany on September 17-19. Parties interested in meeting with ClariPhy can contact John O'Neill, VP of Marketing at [phone] or [e-mail].

About ClariPhy

ClariPhy Communications, Inc. is a fabless semiconductor company developing high-speed ICs targeting 10-Gbit/s networks in enterprise backbone, enterprise data center and telecom environments. ClariPhy's ICs enable IT and network management to significantly improve network performance and lower cost. ClariPhy's investors include Norwest Venture Partners (NVP), Onset Ventures, Allegis Capital and Pacific General Ventures. ClariPhy has executive offices in Irvine, California and a development center in Cordoba, Argentina. For more information, please visit www.clariphy.com.