Conexant Enters Fiber Optic Access Market with World's Most Integrated and Lowest Cost System-on-a-Chip; Solution Targets Fiber-to-the-Home and Fiber-to-the-Neighborhood Applications.

NEWPORT BEACH, Calif. -- Conexant Systems, Inc. (NASDAQ:CNXT), a worldwide leader in semiconductor solutions for broadband communications, enterprise networks and the digital home, marked its entry into the fiber access market with its integrated Xenon system-on-a-chip (SoC) solution. The device is targeted at optical network terminals (ONTs) on the client-side of broadband passive optical networks (BPONs). PON networks provide cost-effective, high-speed "last mile" broadband connections to homes and businesses over a fiber optic cable, and are an evolutionary step from coaxial cable or copper-based connectivity solutions. The Xenon system solution can also be used in conjunction with Conexant's Accelity VDSL/VDSL2 chipset to provide fiber-to-the-neighborhood (FTTN), enabling the cost-effective delivery of triple-play voice, video and data services. Xenon is the first in a family of planned devices for PON networks, and is currently being deployed by service providers worldwide.

"We have leveraged our system design expertise and technical leadership position in DSL to deliver the world's most integrated and lowest system cost broadband passive optical network semiconductor solution," said Akram Atallah, vice president and general manager of Broadband Access for Conexant. "PON provides broadband network operators with a next-generation solution for the delivery of bandwidth-intensive, voice, video and data services to the home. Further, our Xenon PON device can be used with our VDSL chipsets to provide operators with an economical, high-performance solution that allows them to quickly deliver products to a larger, existing subscriber base."

According to industry analyst firm IDC, the market for PON chipsets is expected to approach $150 million by 2009. "The PON semiconductor market is finally ready for prime time, and highly integrated chip solutions can help to drive adoption," said Allen Leibovitch, program manager, semiconductors at IDC.

PON networks are being deployed by operators worldwide to deliver next-generation services. FTTN networks provide a cost-effective method to bring fiber to the neighborhood, and then use VDSL technology to deliver higher rates to the home over existing copper wire.

The Xenon processor integrates a standard-compliant ITU G.983 BPON MAC/framer and network processor into a single device for bridging and router applications. The single-chip solution is based on a high-performance dual-ARM9 core network processor. Xenon supports downstream data rates of 622 megabits per second (Mbps) and upstream rates of 155 Mbps. An optimized version for multiple dwelling unit (MDU) applications provides 25 percent greater throughput, and seamlessly interfaces to Conexant's Accelity VDSL/VDSL2 chipset.

The device includes support for Conexant's ISOS(TM) suite of communications software, which accelerates the integration of new features, reduces customer development costs, streamlines product development, and reduces time to market. The flexibility of the ISOS platform and rich feature set also allows equipment developers to customize products to meet the needs of their subscriber base. In addition, Xenon includes support for quality of service (QoS), Voice over Internet Protocol (VoIP), and IP video multicasting in triple-play applications.

In addition to the Xenon framer/processor, Conexant offers a comprehensive suite of components including Ethernet bridge/routers, 802.11 WLAN solutions, VoIP coprocessors and network processors for HomePlug(SM) powerline applications. Complete Xenon ONT reference designs that include an Ethernet router and VoIP coprocessors are also offered.

Conexant is the market and technology leader in DSL chipsets, and has shipped more than 130 million DSL ports to customers around the globe. The company's central office (CO) and customer premise equipment (CPE) semiconductor solutions include a full range of standards-based integrated circuits, software and reference designs for asymmetric and symmetric DSL applications. Additional products include a highly integrated, multi-application CO network processor for the next-generation of intelligent DSL access equipment.

Packaging and Pricing

The Xenon processor is packaged in a 528-pin plastic ball grid array (PBGA) and priced at $29.90 each in quantities of 10,000.

About Conexant

Conexant's innovative semiconductor solutions are driving broadband communications, enterprise networks and digital home networks worldwide. The company has leveraged its expertise and leadership position in modem technologies to enable more Internet connections than all of its competitors combined, and continues to develop highly integrated silicon solutions for broadband data and media processing networks.

Key products include client-side xDSL and cable modem solutions, home network processors, broadcast video encoders and decoders, digital set-top box components and systems solutions, and dial-up modems. Conexant's suite of networking components includes a leadership portfolio of IEEE 802.11a/b/g-compliant WLAN chipsets, software and reference designs, as well as solutions for applications based on HomePlug(SM) and HomePNA(TM). The company also offers a complete line of asymmetric and symmetric DSL central office solutions, which are used by service providers worldwide to deliver broadband data, voice, and video over copper telephone lines.

Conexant is a fabless semiconductor company that recorded more than $900 million in revenues in fiscal year 2004. The company has approximately 2,400 employees worldwide, and has headquarters in Newport Beach. To learn more, please visit the company at www.conexant.com.

Safe Harbor Statement

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