Conexant Teams With NDS to Bring New Digital TV Services to Consumers and Broadcasters.

Business Editors & High-Tech Writers

NEWPORT BEACH, Calif.--(BUSINESS WIRE)--April 23, 2001

Companies Will Collaborate On Development And Marketing Of Advanced

Set-Top Box Platform

Conexant Systems, Inc. (Nasdaq:CNXT), a worldwide leader in semiconductor system solutions for communications applications, today announced that it has joined forces with NDS Group plc (Nasdaq:NNDS) to develop a new interactive set-top box reference design platform.

Designed to bring the latest interactive services to consumers and enhance revenue opportunities for broadcast operators, the set-top box reference platform will be optimized for emerging personal video recording (PVR) applications. The Conexant/NDS PVR reference design will enable the creation of high-performance, low-cost satellite and cable set-top boxes that are based on Conexant's complete system solutions.

As part of the arrangement, Conexant will integrate NDS' advanced XTV(TM) PVR technology -- which allows consumers to record, pause, rewind and fast-forward encrypted television programs in real-time -- into its interactive TV decoder chipsets and will develop device drivers that support NDS' XTV system software.

In addition, the two companies have agreed to participate in joint marketing and business development programs to support sales of the combined platform. The Conexant/NDS solution will be available later this year to set-top box manufacturers.

"We are pleased to extend our relationship with NDS, and to collaborate on the development and marketing of next-generation set-top box solutions," said Eric Rayel, director, technical marketing for Conexant's Digital Infotainment Division. "Our combined leadership will enable the creation of cost-optimized set-top platforms specifically designed for emerging interactive PVR applications."

"Conexant is an important NDS IC technology partner and its solutions are an ideal complement to our XTV platform," said Dr. Jas Saini, vice president Consumer Devices, NDS Group plc. "We look forward to working with Conexant to bring to market new set-top box solutions that allow broadcasters to deliver a new array of interactive services to consumers."

A value-added platform that incorporates digital reception and content protection, NDS' XTV technology extends business opportunities for broadcast operators by enabling them to exploit new and existing business models for content stored on the disk in the set-top box. XTV technology offers increased pay-per-view and rental opportunities, and enhances the promotion of premium content to viewers, allowing them to pay when viewing, rather than when recording. In addition, it enables consumers to personalize their viewing, scheduling and recording.

Conexant interactive TV decoder chipsets offer an ideal hardware platform for XTV combining advanced CPU, core logic and graphics performance in a low cost single chip form factor. Next generation ICs from Conexant will integrate NDS' XTV functionality for optimized PVR system performance and features.

Offering a combination of leading-edge performance and low bill-of-materials costs, Conexant's set-top box ICs provide a comprehensive silicon and software solution for OEMs designing PVR-enabled set-top products. Conexant's set-top box portfolio includes cable modems, silicon tuners, demodulators, TV encoder chips and analog modems.

About Conexant Systems, Inc.

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

Conexant's personal networking business is focused on digital infotainment, personal imaging, wireless communications and personal computing products that are used in mobile communications and the broadband digital home.

Mindspeed Technologies is focused on Internet infrastructure products including WAN transport, multiservice access and broadband access for applications that extend from the edge of the Internet all the way to its optical core.

Conexant has headquarters in Newport Beach and delivered revenues of $2.1 billion for fiscal 2000. The company is a member of the S&P 500 and NASDAQ-100 indices. To learn more, visit the company at www.conexant.com.

About NDS

NDS Group plc is a leading supplier of open conditional access software and interactive systems for the secure delivery of entertainment and information to television set-top boxes and personal computers. The company also develops security solutions for broadband Internet multicasting applications. See www.nds.com for more information.

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.

Note to Editors: Additional technical information is available.

Conexant is a trademark of Conexant Systems, Inc. XTV and Videoguard are trademarks of NDS plc. Other brands and names contained in this release are the property of their respective owners.