Conexant Updates Fourth Fiscal Quarter Outlook.

RED BANK, N.J. -- Conexant Systems, Inc. (Nasdaq:CNXT), a worldwide leader in semiconductor solutions for broadband communications, enterprise networks and the digital home, today announced that it expects revenues for its fourth fiscal quarter, which ends Friday, October 1, 2004, to be in a range of $210 million to $215 million due primarily to excess channel inventory in Asia that is a result of lower-than-expected demand. The company anticipates that pro forma non-GAAP earnings per share (EPS) will range from a loss of $0.02 to a loss of $0.01, compared to the guidance range of pro forma non-GAAP income of $0.00 to $0.02 per share established in July.

"Conexant's lowered fourth fiscal quarter expectations are a direct result of excess channel inventory in our service-provider and PC-related businesses," said Armando Geday, Conexant's chief executive officer. "Ongoing softness in customer demand, reduced product lead times and price erosion also resulted in weakness in our turns business.

"For our fourth fiscal quarter, we expect gross margin to be at the low end of the range of 40 to 42 percent that we anticipated in July, and we expect to reduce pro forma operating expenses by considerably more than the $3 million to $4 million we anticipated in July, to a level approaching $95 million from $104.4 million last quarter."

The company will report fourth fiscal quarter financial results toward the end of October 2004 on a date to be announced. At that time, the management team will hold its regular conference call for editors, analysts and investors and provide more detail on fourth fiscal quarter results.

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 with annual run-rate revenues of approximately $1.0 billion. The company has approximately 2,400 employees worldwide, and is headquartered in Red Bank, N.J. To learn more, please visit us at www.conexant.com.

Safe Harbor Statement

This press release contains statements relating to our future results (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: 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 uncertainties of litigation; and the risk that the businesses of Conexant and GlobespanVirata will not be integrated successfully, as well as other risks and uncertainties, including those detailed from time to time in our Securities and Exchange Commission filings. These forward-looking statements are made only as of the date hereof, and we undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

Conexant is a registered trademark of Conexant Systems, Inc. Other brands and names contained in this release are the property of their respective owners.