Conexant First to Combine Interactive Television Capability and Broadband Internet Connectivity in Single-Chip Solution.

Business Editors & High-Tech Writers

NEWPORT BEACH, Calif.--(BUSINESS WIRE)--Feb. 05, 2001

Conexant's Cable Set-Top Box Solution Offers Industry-Leading Features,

Including Support For Popular Personal Video Recording Applications,

Coupled With Unmatched Flexibility For Global Manufacturers

Conexant Systems, Inc. (Nasdaq:CNXT) Monday announced an industry-leading, single-chip digital cable transceiver solution that combines simultaneous cable-modem functionality and interactive cable broadcast capability for set-top box applications.

In addition, the CX24420 provides the necessary features to support multiple broadcast demodulation necessary for personal video recording (PVR) functionality, which lets consumers record, pause, rewind and fast-forward a television program in real-time.

Conexant's solution not only provides the ideal platform for enhancing the features of next-generation digital set-top boxes, but also enables OEMs to reduce the bill-of-materials (BOM) cost of cable set-top boxes by at least $130 -- more than a 25 percent reduction for typical designs.

In addition, Conexant's cable set-top box chip gives manufacturers flexibility to support multiple global standards, and to easily upgrade their products via the product's software media access controller (MAC) to accommodate new standards.

The CX24420 leverages the company's extensive cable-modem portfolio, particularly its programmable MAC technology. Conexant's success and pedigree in DOCSIS and DVB/DAVIC MAC technology provided a strong foundation for the development of the chip, which helps customers develop interactive, standards-compliant system solutions in the shortest time possible.

In addition, the CX24420 is designed to seamlessly interface with the company's single-chip MPEG-2 solutions -- as well as its silicon tuner implementations -- to provide a complete end-to-end solution for cable set-top boxes.

"Our latest set-top box device is truly a design breakthrough that combines cable TV with Internet connectivity and is configured to integrate with Conexant's home-networking technologies including voice over IP (VoIP) solutions. The chip will enable a new generation of advanced home gateways and interactive set-top appliances," said Anthony Simon, director of marketing for cable set-top platforms in Conexant's Digital Infotainment Division.

"In addition, the CX24420 delivers a full-featured solution to support the current and emerging cable television standards throughout North America, Europe and Japan. Our solution not only gives manufacturers the flexibility they need to quickly design products for an ever-changing marketplace, but also provides a reduced-cost solution that will bring high-end, set-top box functionality within reach of mainstream consumers for the first time."

According to technology research firm Cahners In-Stat Group, cable-modem functionality is expected to become a standard feature in high-end set-top boxes over the next two years, and digital cable set-top box shipments are poised to grow from 10.3 million in 2000 to 15.7 million in 2003.

"We believe that home-gateway solutions, combining simultaneous digital video and Internet connectivity in a single device, will be a key driver of set-top box market growth in the next several years," said Mike Paxton, senior analyst with In-Stat.

"By integrating multiple functions into a cost-effective, single-chip offering, Conexant's silicon solution is an ideal enabler for this new class of set-top appliances."

The CX24420 is the only solution available with integrated quadruple demodulator paths together with dual return channel paths -- enabling it to manipulate two input video streams for PVR applications and simultaneously support in-band, cable-modem functionality -- as well as a transceiver supporting out-of-band interactive TV functionality. The device's unique processor and memory architecture enable this simultaneous multi-function capability.

This architecture also eliminates the need for consumers to add expensive cable-modem, network-interface modules (NIMs) into their set-top boxes. In addition, the solution further helps reduce costs through integrated analog blocks, as well as integrated I/O interfaces such as peripheral component interconnect (PCI), Ethernet and universal serial bus (USB).

To meet the needs of global manufacturers, Conexant's cable set-top-box chip supports a variety of set-top box and cable-modem standards including DVS-178, DVS-167, DOCSIS 1.0/1.1, EuroDOCSIS 1.0, DVB, and DAVIC 1.2 and 1.5.

Packaged in a ball grid array (BGA), the CX24420 will be priced at $45 in quantities of 100,000 units. Samples will be available this month, with production volumes available in calendar Q3 2001.

About Conexant Systems, Inc.

With revenues of $2.1 billion in fiscal 2000, Conexant is the world's largest independent company focused exclusively on providing semiconductor solutions for communications electronics. With more than 30 years of experience in developing communications technology, the company draws upon its expertise in mixed-signal processing to deliver integrated systems and semiconductor products for a broad range of communications applications.

These products facilitate communications worldwide through wireline voice and data communications networks, cordless and cellular wireless telephony systems, personal imaging devices and equipment, and emerging cable and wireless broadband communications networks.

The company organizes its activities into two business areas: Internet infrastructure, which consists of the Network Access products, and personal networking, comprised of Digital Infotainment, Personal Imaging, Wireless Communications and Personal Computing products. Conexant is a member of the S&P 500 and Nasdaq-100 Indices. For more information, visit Conexant at www.conexant.com.

Conexant's Digital Infotainment Division is a leading provider of semiconductor systems for broadband and broadcast communications applications. Addressing the convergence of PCs with consumer entertainment products, the division's broad portfolio includes cable and wireless modems, IP telephony products, digital set-top boxes and digital broadcast and video solutions for personal computing appliances.

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: maintaining a consistent and reliable source of energy; 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 and extent of utilization of manufacturing capacity; pricing pressures and other competitive factors; changes in product mix; fluctuations in manufacturing yields; 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 Internet infrastructure and personal networking 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 those 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.