Conexant and Huawei Announce Remote Management Software for DSL Networks; New Software Deployed in Field Trials by Two Chinese Service Providers.

Business Editors/High-Tech Writers

NEWPORT BEACH, Calif.--(BUSINESS WIRE)--Oct. 6, 2003

Conexant Systems, Inc. (Nasdaq:CNXT), a worldwide leader in semiconductor system solutions for digital information and home entertainment networks, and Huawei Technologies Co., a global developer and provider of telecommunications infrastructure, today announced a remote management software solution for digital subscriber line (xDSL) networks. The new software allows service providers to administer DSL networks from a central location, which significantly reduces customer service and support costs. Two service providers, China Telecom and China Netcom, are currently conducting field trials of the remote management software. The trials are expected to conclude in November.

Conexant and Huawei's jointly developed software will enable service providers to transparently and cost-effectively manage, configure, change, or add new xDSL services to their network from a central network management facility, without any performance degradation, service disruption, or new hardware. This simplifies the configuration process considerably, eliminates the need for an on-site technician, and saves the service provider both time and money while improving customer satisfaction.

"Managing end-to-end networks capable of delivering high-speed Internet and on-demand services and data from multiple service providers is an extremely complex and expensive process," said Chee Kwan, vice president of Broadband Access Products for Conexant. "Service providers are looking for a cost-effective, simple way to configure, activate, control, and account for these services in a way that fully satisfies the customer. We are pleased to work with Huawei on this exciting project, and are confident that the field trials of this technology will drive home the clear economic and service benefits our jointly developed, easy-to-use remote management solution provides."

"Service providers recognize that customer service and technical support are critical issues to ensuring the growth of broadband services, yet balancing this need with financial considerations is an ongoing challenge," said Guo Haiwei, vice president of marketing for Huawei. "These field trials are a strong indicator that service providers recognize the need for a remote management tool that will allow them to further improve the quality of their service offering, and facilitate the widespread deployment of xDSL in China and other countries in Asia. We are excited to work with China Telecom, China Netcom, and Conexant to establish a new milestone in DSL network management capabilities."

"With the rapid growth of xDSL broadband access services in China, operating and maintaining an effective network and providing efficient technical support for a large number of xDSL users are two of the biggest challenges for service providers," said Yiqun Wu, senior analyst for IDC China. "From a technical point of view, remote management is an innovative solution which will serve three key functions: remote diagnosis, configuration, and software upgrading. Service providers will benefit from cost-savings and customer satisfaction, and it should accelerate the development of xDSL."

About Remote Management

Today, service providers must configure modem devices before they are delivered to the end-user, which can be a complicated and time-consuming process. In addition, service technicians typically must be sent to assess and correct operational issues at a customer's home or business.

The advanced remote management software co-developed by Conexant and Huawei solves this challenge, automatically configuring the customer premise modem to the correct network parameters as soon as it is activated. This is accomplished by utilizing the simple network management protocol (SNMP) over the existing high-level data link control/embedded operations channel (HDLC/EOC), as opposed to Web-based remote management via data path or dedicated management permanent virtual circuit (PVC). This channel does not require an integrated TCP/IP stack, which eliminates the need to configure complex private virtual network, Internet protocol, and related parameters. In addition, this channel does not use the data path bandwidth of the end device, so there is no impact to network performance. And, unlike traditional methods, the new remote management software can be used to control modems even if the modem data channel is turned off or disabled.

A key benefit of the new remote management software is that it is extensible and compatible with all G.997.1-compliant technologies, including ADSL, SHDSL, and VDSL. This allows telecom providers to expand their service offering and support multiple versions of DSL technology on their network, without having to replace existing central office or customer premise equipment.

For end-users, this new software provides them with a "plug-and-play"-configured modem solution that is quick and easy to install. Maintenance issues are also minimized as the modem can be monitored and managed remotely, and new services can be transparently added through a simple software download as opposed to a physical service call.

About Conexant

Conexant's innovative semiconductor system solutions are driving digital home information and entertainment 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 leading integrated silicon solutions for cable, satellite, terrestrial data, and digital video networks.

Key products include digital subscriber line (DSL) and cable modem solutions, home network processors, broadcast video encoders and decoders, digital set-top box components and systems solutions, and dial-up modems. The company also offers a suite of wireless data and networking components solutions that includes HomePlug(R), HomePNA(TM), and WLAN (802.11) components and reference designs.

Conexant is a fabless semiconductor company and has approximately 1,450 employees. The company is headquartered in Newport Beach, Calif. To learn more, visit us at www.conexant.com.

About Huawei

Incorporated in 1988 and headquartered in Shenzhen, China, Huawei Technologies (http://www.huawei.com) is a private, high-tech enterprise fully owned by its employees. Huawei specializes in the research and development (R&D), production, and marketing of telecommunications equipment, providing customized network solutions for telecom carriers in fixed, mobile, optical network, and data communications network. Sales in 2002 reached US$2.7 billion.

Huawei products have been put into wide applications in over 40 countries and regions, including Germany, France, Spain, the U.K., Russia, Brazil, Egypt, Thailand, Singapore, and South Korea. Among Huawei's 22,000 employees, 46 percent are engaged in R&D. Each year Huawei invests no less than 10 percent of its revenue into R&D.

Safe Harbor Statement

This press 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: 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 ability to attract and retain qualified personnel; and the uncertainties of litigation, as well as other risks and uncertainties, including 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.

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