Conexant Works With HP to Deliver Complete OEM Color Multifunction Products; Industry Leaders Collaborate to Satisfy the Demand For Color Communications.

Business Editors & High-Tech Writers

NEWPORT BEACH, Calif.--(BUSINESS WIRE)--July 31, 2000

Conexant Systems Inc. (Nasdaq:CNXT) Monday announced plans to work with Hewlett-Packard Co. to provide a low-cost turnkey color multifunction product (MFP) with color fax and Internet connectivity.

The combination of Conexant's recently announced MFC2000 multi-function solution and HP's award-winning inkjet technology will provide OEMs with everything needed to reduce development costs, time-to-market and footprint size -- on devices from standalone fax machines to multi-function (fax/copy/scan/print) devices.

Conexant's integrated system-on-a-chip design, complete with firmware and software, provides the heart of the alliance's multi-function color solution. The HP printing modules provide PhotoREt II color-layering technology for photo-quality color printing, along with related design and firmware.

HP's reference design guides OEM customers already using monochrome fax solutions through the simple process of swapping out old monochrome modules and replacing them with new color components.

According to CAP Ventures, a consulting firm in Norwell, Mass., color fax capability will become standard on all fax capable inkjet multi-function devices within the next few years. "Now that market leaders such as HP and Canon have added color fax capability to their printer products, mainstream fax vendors must take notice and do the same," said Virginia Renz Higgins, a facsimile and image communications analyst with CAP Ventures.

Additionally, Barry Tepper, CAP Ventures' senior consultant for multifunction peripherals, said, "Color fax is starting as a product differentiator, but as the public realizes they can communicate high-quality color images with the traditional ease of fax without spending much money on the equipment, color fax will become a checklist item."

"Market demand is clearly shifting from monochrome to color communications," said RanDair Porter, Conexant's MFP business director. "This solution will pave the way for a new generation of affordable multifunction and standalone fax products that will enhance color productivity in consumer and SOHO environments. We're helping OEMs make full-color solutions accessible to a broad range of users."

"The possibility of transforming monochrome fax and MFP products into devices that produce cost-effective color faxes, copies and prints will be a reality with the solution offered by HP and Conexant," said Gary Sciarappa, OEM sales manager for HP's Specialty Printing Systems (SPS) Operation. "The relationship with Conexant underscores HP's drive to expand color beyond desktop publishing and bring it to fax and multi-function products."

For more than 30 years, Conexant has been a leading supplier of fax/modem devices. With more than 1 million V.34-compliant fax modems shipped, Conexant leads the industry in fax-enabled solutions, and powers three out of every four fax machines worldwide.

For more information on HP inkjet facsimile printing solutions, contact Gary Sciarappa, OEM sales manager, at 858/655-3729 or [e-mail], or visit www.hp.com/oeminkjet. For more information on Conexant's solutions, visit the Conexant Web site at www.conexant.com.

About Conexant Systems Inc.

With a revenue run-rate of approximately $2 billion per year, 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 aligns its business into five product platforms: Network Access, Wireless Communications, Digital Infotainment, Personal Imaging and Personal Computing. Conexant is a member of the S&P 500 and Nasdaq-100 Indices. For more information, visit Conexant at www.conexant.com.

Safe Harbor Statement

This news 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.