Connect One Receives Second Patent for Its Pioneering Internet Connectivity Technology.

Business Editors/High Tech Writers

SANTA CLARA, Calif.--(BUSINESS WIRE)--May 23, 2001

Patented Technology Opens Doors of the Internet to Millions of

People Through a Wide Range of Everyday Devices

Connect One Semiconductors, Inc., the leading manufacturer of Internet peripheral chips, today announced that it has received a second patent from the US Patent and Trademark Office (Patent Number 6,216,156) for the method and apparatus of connecting a wide range of everyday devices, including data modems, telephones, answering machines, fax machines, information appliances and PBXs, to the Internet and other networks for messaging applications.

The patent is a continuation of Patent Number 5,826,026 received by Connect One in 1998, further substantiating Connect One's position as a leading supplier to the emerging Internet device/appliance market.

According to International Data Corp., the market for Internet appliances will grow to more than $40 billion in 2005, from about $7 billion in 2000. Survey data compiled by IDC also indicates that 7.7 million US households in June 2000 owned non-PC digital devices that receive data from the Internet and other digital networks. "Connect One's patent covers a wide range of devices that can benefit from Internet connectivity," said Randy Giusto, vice president of mobile and desktop research for IDC, Framingham, MA. "Our research confirms that the market for these kinds of devices, wired and wireless, will explode over the next few years."

The heart of Connect One's patented technology is its iChip(TM) Internet Controller(TM), a peripheral chip that mediates the Internet connection between a host device's processor and a LAN, dial-up or wireless modem. iChip is a complete off-the-shelf solution that includes all the hardware and software necessary to run the Internet protocols for sending and receiving e-mail messages and Web pages, and for opening and closing socket interfaces. Connect One's Internet-enabling technology reduces the time, cost and complexity of designing Internet connectivity into everyday devices. By 2005, IDC predicts a market of well over 100 million devices such as Web tablets, Internet gaming consoles, iTV-enabled devices, handheld devices and other emerging technology products.

"Receipt of this patent is significant for Connect One," said Amir Friedman, Connect One president and CEO. "It means our customers will feel more secure knowing that they have protected technology in their next-generation devices. As manufacturers continue to introduce these types of Internet-enabled products using our iChip, Connect One's vision of bringing the Internet within the reach of hundreds of millions of people will finally become a reality."

For patent details, please visit http://www.delphion.com/details?pn=US06216156__

About Connect One

Connect One develops and manufactures chips, software, and hardware that enable manufacturers of industrial, commercial and consumer devices to reduce the time, cost and complexity of connecting devices to the Internet. Connect One is privately owned, with offices in Santa Clara, CA and Kfar Saba, Israel. For further information, please visit the company's Web site at http://www.connectone.com or send an e-mail to [e-mail].

iChip, iChip LAN, iLAN, Internet Controller, iModem, iWare, Fax Messenger, AT+i and Connect One are trademarks of Connect One, Ltd.