Conexant Works With Cisco to Define Interconnection Standard That Cuts Costs of Deploying High-Speed Wide Area Networks.

NEWPORT BEACH, Calif.--(BUSINESS WIRE)--Nov. 10, 1999--

Conexant Systems, Inc. (NASDAQ:CNXT) today announced that it will provide Cisco Systems (NASDAQ:CSCO) with semiconductor solutions to support a new low-cost interface designed for interconnecting co-located Gigabit Switch Router (GSR) networking equipment at 9.952 Gbps (OC-192) data rates.

Together, with wide industry support, Cisco and Conexant will deliver a very short reach (VSR) interface based on parallel optics that will dramatically reduce customers' capital costs for deploying high-speed interconnections.

The VSR technology will be used in point of presence (POP), central office (CO) and portal sites to interconnect co-located equipment, such as high-speed gigabit and terabit routers, Dense Wavelength Division Multiplexing (DWDM) terminals and SONET/SDH Add-Drop Multiplexors (ADMs), over distances up to 400 meters.

In contrast to current serial optic links which cost many thousands of dollars, this new interface standard will enable the creation of 10 Gbps interconnect links for a significantly lower cost.

"Addressing the continuous demand for greater bandwidth, this technology will provide solutions for today's congested Internet, while delivering a foundation for lower-cost networks that are optimized for the new world of IP-to-optical transport," said Bill Swift, director of engineering at Cisco's Optical Internetworking Business Unit (OIBU). "Conexant's expertise in designing silicon for high-speed optical internetworking products provided key technology for developing and driving an interface standard to support these next-generation, gigabit IP-to-optical network infrastructures."

According to market estimates, 80 percent of all interconnects deployed with POPs, COs and portal environments are less than 400 meters long. Previously, co-located network equipment was connected using a serial interface, resulting in high cost and complexity.

As most serial optical links are used for longer reach interconnections (up to 160 kilometers), they are unnecessary for applications in which the networking equipment is co-located in buildings, POPs or central offices. In addition, as the data rate increases to OC-12 (622 Mbps) and higher, the lower-cost optics used, such as LEDs, reach their performance limits.

A serial optical module manufacturer then must move to high-speed laser technology, which is generally much more expensive and more sensitive to environmental changes. With VSR technology, service providers can leverage optical internetworking technology to cost-effectively interconnect co-located network equipment at 10 Gbps.

As a low-cost OC-192 alternative to expensive serial links, the new VSR interface proposal has the potential to enable customers to migrate their network infrastructures to 10 Gbps pipes at a fraction of the cost of traditional solutions.

"This collaboration with Cisco is further evidence of our commitment to increase network bandwidth and support feature-rich services on the Internet," said Warner Andrews, division director for Broadband Internetworking Solutions at Conexant. "With our recently-announced initiative to provide solutions for Cisco's Dynamic Packet Transport (DPT) solutions, and our leadership in xDSL and voice over IP (VoIP), we are enabling a host of next-generation Internet access and transport technologies."

The VSR interface specification was presented at the Optical Internetworking Forum (www.oiforum.com) meeting on October 19, 1999 in Los Angeles.

The contribution, co-authored by 14 industry-wide service providers, manufacturers and component suppliers, was adopted as a baseline document for the Optical Internetworking Forum's development of a specification for an OC-192 VSR interface based on parallel optics.

Conexant plans to release products supporting the VSR specification during the first half of 2000.

This press release contains statements relating to future results of the company (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 and market conditions, including, but 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 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 implementation of the company's diversification strategy; labor relations of the company, its customers and suppliers; timely completion of Year 2000 modifications by the company and its key suppliers and customers; 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. Other brands and names contained in this release are the property of their respective owners.

With revenues of approximately $1.5 billion, Conexant is the world's largest independent company focused exclusively on providing semiconductor products and systems 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 aligns its business into five product platforms: Network Access, Wireless Communications, Digital Infotainment, Personal Imaging, and Personal Computing. Conexant is a member of the Nasdaq-100 Index, which represents the largest and most active stocks listed on The Nasdaq Stock Market across major industry groups. For more information, visit Conexant at www.conexant.com.