Conexant Expands Video Processing Product Portfolio With Introduction of a Low Power MPEG-2 Audio/Video Encoder.

Business Editors & High-Tech Writers

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NEWPORT BEACH, Calif.--(BUSINESS WIRE)--Sept. 30, 2002

Multi-Chip Functionality in a Single Chip Reduces Design and

Manufacturing Costs for Next-Generation Digital Video Products

Conexant Systems, Inc. (Nasdaq:CNXT), a worldwide leader in semiconductor system solutions for communications applications, today announced a new low power MPEG-2 audio/video encoder, further expanding its video processing product offering.

The CX23416 incorporates the functionality of up to three different chips in a single device, enabling manufacturers to improve video quality while simplifying designs and reducing manufacturing costs.

"Our new MPEG-2 encoder is ideally suited for use in personal computers, set-top boxes, and exciting new products such as personal video recorders and recordable digital video disks," said Greg Fischer, vice president of marketing for Conexant's Broadband Communications Segment.

"This is the first product to result from our recent MPEG technology acquisition. The strength of our combined technology portfolio and engineering teams enables us to deliver a highly integrated device at a price point that will allow consumer electronics and personal computer companies to dramatically reduce the cost of designing and manufacturing their next-generation digital video products."

The market for Moving Picture Experts Group (MPEG)-compliant video encoder products is expected to grow dramatically in the next few years. "We expect the consumer market for MPEG-2 encoders and codecs to grow from less than a million units in 2001, to more than 30 million units in 2006," said Michelle Abraham, a senior analyst for industry analyst firm In-Stat/MDR.

"Chip solutions such as Conexant's new device will enable MPEG-2 encoding to move into new areas such as digital video recorders, as well as other emerging applications."

The CX23416 includes several features that provide end-users with the best possible picture. For example, pre-filtering improvements include built-in noise filters that dynamically improve images in the pre-processing stage while reducing elementary stream bit rates. Other features include an increased motion search range, the de-coupling of motion estimation from encoding, and an adaptive quantization scheme.

The device requires 550 milliwatts of power in full operation, and 1 milliwatt of power in standby mode.

Conexant also provides software support for the CX23416, including an on-chip API function call layer and binary and source code examples. Evaluation boards are also available.

Pricing and Availability

The CX23416 MPEG-2 encoder is priced at $21 in OEM quantities. The device is sampling now with volume production scheduled for November of 2002. The CX23416 is packaged in a 23mm 233-ball grid array (BGA).

Note to Editors: Additional technical information available upon request.

About Conexant

Conexant Systems, Inc., a worldwide leader in semiconductor system solutions for communications applications, leverages its expertise in mixed-signal processing to deliver integrated systems and semiconductor products through two separate businesses.

The Broadband Communications business develops and delivers integrated solutions that enable digital entertainment and information networks for the home and small office. Mindspeed Technologies(TM), the company's Internet infrastructure business, designs, develops and sells a complete portfolio of semiconductor networking solutions that facilitate the aggregation, transmission and switching of data, video and voice from the edge of the Internet to linked metropolitan area networks.

Conexant, headquartered in Newport Beach, Calif., delivered revenues of $1.1 billion for fiscal 2001. The company is a member of the Nasdaq-100 market index. To learn more, visit us at www.conexant.com or www.mindspeed.com.

Safe Harbor Statement

This news release contains statements relating to future results of Conexant (including certain projections and business trends) that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected as a result of certain risks and uncertainties. These risks and uncertainties include, but are not limited to: global economic and market conditions, such as the cyclical nature of the semiconductor industry and the markets addressed by the company's and its customers' products; demand for and market acceptance of new and existing products; successful development of new products; the timing of new product introductions; the availability of manufacturing capacity; pricing pressures and other competitive factors; changes in product mix; product obsolescence; the ability to develop and implement new technologies and to obtain protection for the related intellectual property; the successful separation of the company's broadband communications and Internet infrastructure businesses; the ability to attract and retain qualified personnel; labor relations of the company, its customers and suppliers; and the uncertainties of litigation, as well as other risks and uncertainties, including but not limited to the security and safety risks of our employees and of company facilities and those risks and uncertainties detailed from time to time in the company's Securities and Exchange Commission filings. These forward-looking statements are made only as of the date hereof, and the company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

Note to Editors: Conexant and Mindspeed are trademarks of Conexant Systems, Inc. Other brands and names contained in this release are the property of their respective owners.

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