CommQuest to expand cellular chipset family, reveals plans for first complete GSM offering; company builds on the cost/integration breakthroughs of its AMPS/TACS "Parts Kit" chipset, and announces a highly flexible GSM solution that is the first to include embedded protocol software and a customizable user interface.

ENCINITAS, Calif.--(BUSINESS WIRE)--March 4, 1996-- CommQuest Technologies Inc. Monday announced that it is expanding its line of low-power, low-chipcount VLSI-based "Parts Kit" solutions for cellular handsets, and will debut later this year the most flexible and comprehensive three-chip, fully supported solution for the increasingly popular international Global System for Mobile Communications (GSM) standard for digital cellular communication.

CommQuest's GSM solution will be the first of its kind to include all necessary GSM protocol software and a broadly customizable user interface that will optionally allow OEMs to quickly and easily differentiate their products with such features as keypads, displays and other auxiliary functions.

CommQuest believes a growing number of OEMs wish to quickly and cost-effectively enter the cellular handset market with a "tailorable" product that supports the worldwide GSM standard. The company is currently engaging with these OEMs to develop GSM solutions based on the core VLSI silicon platform that CommQuest debuted in November.

This design included the company's unique, highly integrated all-digital implementation of the industry's widely adopted AMPS/TACS analog cellphone specification.

The new GSM offering is built on CommQuest's proprietary Communication Application Specific Processor (CASP(tm)) architecture and its associated, extremely flexible CommSyntax design methodology.

Together, these technologies dramatically reduce cost, chipcount and power consumption as compared to traditional DSP-based solutions. Additionally, by including embedded GSM protocol software that previously had to be licensed on a third-party basis, CommQuest removes what had until now been considered a steep market-entry barrier for GSM handset OEMs.

The total solution, including customizable user-interface software, gives OEMs unprecedented power and flexibility for designing highly complex, feature-rich GSM solutions, in either off-the-shelf or highly customized configurations for the rapidly emerging digital cellular telephone market.

"CommQuest is the first company to offer a `tailorable' product that integrates the control processor and embedded GSM protocol software, plus the audio interfaces, voice and channel coding, and radio-frequency functionality, all into a three-chip solution that features unprecedented application-specific programmability and easy migration to other designs as market requirements and standards evolve," said Robert Ochtel, director of business development for CommQuest's Wireless Products Business Unit.

"The `tailorable' CASP architecture represents a significant departure from past solutions," Ochtel explained. "First, it provides our handset customer OEMs the ability to tailor their underlying silicon according to the cost and feature requirements of the end market application.

"Secondly, CommQuest recognizes the fact that there are many diverse markets that are developing -- from standard 900 MHz products to Wireless Local Loop applications -- that are targeting the GSM standard for their underlying technology.

"By providing moderate- to high-volume customers with total flexibility from silicon through user interface design, CommQuest has in essence provided the customer with the ability to customize their end product as the market dictates."

"CommQuest is breaking new ground for hardware manufacturers by including the type-approved GSM protocol software in its GSM solution," said Gerry Kaufhold of ThorKa Research. "CommQuest has seen the value of supplying its customers with integrated software. Taking this approach with software is a very exciting business model that could have a tremendous impact on the industry.

"CommQuest has removed a substantial barrier to entry -- something that will help expand the market by making it easier for second-tier handset manufacturers to develop competitive products."

Core CommQuest Technology Enables Diverse GSM Design Directions

The tailorable GSM solution offers CommQuest the opportunity to address a multitude of emerging GSM-based markets. This includes standard 900 MHz GSM, low-cost 900 MHz GSM, GSM-based Wireless Local Loop markets, DCS1800 MHz/PCS1900 MHz, and dual-mode, dual-band technology markets where access to multiple technologies is necessary to optimize cellular service coverage.

CommQuest's core technologies are unique in their ability to provide application-specific programmability, and the company's GSM offering will be the first to include type-approved Layers 1,2, and 3 of the GSM protocol software that until now was only available to cell phone OEMs under expensive licensing arrangements.

Additionally, CommQuest's solution offers various options for the handset manufacturer to develop a market-specific User Interface (UIF). OEMs will be able to integrate a turn-key UIF or use CommQuest UIF development tools with which to develop differentiated products with customized keypads, displays and auxiliary functions.

"CommQuest has concluded that most manufacturers that are targeting GSM-based products, whether they are standard 900 MHz GSM markets or PCS1900 markets, are targeting unit volumes of 500K to 1MU-per-year quantities," said Luis Pineda, senior product line manager for GSM at CommQuest.

"This dictates a certain level of customization, whether it is in the user interface, protocol software or the underlying silicon. CommQuest intends to leverage its core competencies in silicon architecture, design tools, type-approved GSM protocol software and customizable interface to meet these customer requirements.

To complete the spectrum of its GSM offerings, CommQuest's standard 900 MHz `Parts-Kit' can also be purchased with off-the-shelf turn-key user interface and protocol software."

GSM Market Poised for Rapid Growth in Digital Cellular, PCS and Dual-Mode Applications

The GSM standard has been adopted for cellular communications in 90 countries throughout the world with over 12 million subscribers. GSM has also been adopted by 10 Personal Communication Services (PCS) providers and is expected to be broadly deployed in the United States by late 1996.

At the same time, as various new GSM markets develop (including DCS1800 MHz in Europe and PCS1900 MHz in the United States), the ability to offer highly integrated, dual-mode, dual-band technology products may be a market necessity.

Here, CommQuest, with its CASP architecture and CommSyntax design methodology, will be able to offer customers single-chip solutions that integrate AMPS and other technologies in combination with its GSM technology. Today, CommQuest is the only company that has available a digital AMPS hardware solution and the associated protocol software that can be easily integrated into dual-mode AMPS/GSM solutions for PCS applications.

CommQuest is currently engaging with key customers to develop tailored GSM-based Parts-Kit products, and expects to ship first products in Fall 1996. The Parts-Kit is composed of three chips: The CQT201 GSM-VDP ASIC, the CQT202 Audio/RF Interface ASIC and the CQT203RF Transceiver.

CommQuest's GSN CASP(tm) based "Parts-Kit" chipset will be priced at $90 per chipset per quantity of 1,000. CommQuest's low-chipcount Parts Kit includes:

o The GSM-VDP ASIC (CQT201) is a single digital CMOS IC based on CommQuest's CASP architecture integrating a MIPS R3000 microprocessor, as well as the traditional baseband functionality incorporating modulation, demodulation, frame and burst processing, equalization, encryption/decryption and voice coding. The CQT201 integrates ETSI compliant layer 1, 2 and 3 software. The CQT201 is housed in a 176 pin plastic thin quad flat pack (TQFP).

o The Audio/RF Interface ASIC (CQT202) implements single bit, sigma-delta sampling converters for the audio and RF interfaces to minimize power consumption. The CQT202 also includes on-chip UHF and VHF synthesizers and a multiplexed A/D converter for various control signals to further reduce system costs. The CQT202 Audio/RF Interface ASIC is packaged in a 80-pin thin quad flat pack (TQFP).

o The Transceiver RFIC (CQT203) is single chip for the radio implementation with various power management modes. The CQT203 contains the receive path (two down conversions), the transmit path (I/Q modulation, up converter and PA driver with +7 dBm output), UHF/VHF VCOs and an on-chip pre-scalar. The CQT203 comes in 49 pin thin quad flat pack (TQFP).

For more information about CommQuest and its products, please contact Robert Ochtel at: 619/633-1618 or via Internet at: [e-mail].

Founded in March 1991 and located in Encinitas, Calif., CommQuest develops and markets state-of-the-art system solutions for digital communication markets. Current products include CommQuest's AMPS/TACS "Parts Kit" chipset solution, CQM-248/CQM-2000 family of general purpose commercial satellite communication modems, the LDRM/MDRM EHF modem chipset and satellite simulator and the Direct Audio Broadcast (DAB) modem. CommQuest currently has 120 employees.

Note to Editors: Photographs of the "Parts Kit" solution are available upon request. More information on CommQuest's Core Competencies and the CASP architecture, as well as quotes from leading industry analysts, are available upon request.

CONTACT: CommQuest Technologies Inc.

Robert Ochtel, 619/633-1618

[e-mail]

or

The Benjamin Group Inc.

Kelly Odle/Carolyn Fromm, 714/753-0755

kodle or [e-mail]