Davicom Semiconductor Acquires Ethernet Switch Technology From NETiO Technologies.

SUNNYVALE, Calif.--(BUSINESS WIRE)--Jan. 4, 1998--Davicom Semiconductor, Inc. announced today that it has acquired Ethernet switch technology from NETiO Technologies, Inc.

Ting Herh, Chairman and Chief Executive Officer of Davicom, said, "We are very excited to add this technology to our portfolio of Ethernet products. Over the past year, NETiO has built a core technology for the implementation of Ethernet and Fast Ethernet switching semiconductors. We will leverage our current customer base and expect to address the needs of new customers with the products from NETiO."

David Lin, President and Chief Executive Officer of NETiO, said, "NETiO's products fill out Davicom's LAN product offering beyond network interface cards and hubs to include products for Ethernet switches. We look forward to successfully integrating our switch activities into Davicom's development activities. Once the development efforts are complete, we expect to benefit from Davicom's distribution capabilities and its relationship with semiconductor fabrication company, UMC of Taiwan."

Davicom Semiconductor, Inc. (www.davicom8.com), headquartered in Sunnyvale, California, designs, develops and markets cost-effective integrated circuit solutions for networking and communications applications. Davicom is a leading supplier of LAN and WAN chips, with product offerings including Ethernet and Fast Ethernet chips and chip sets, to international original equipment manufacturers of networking and communications equipment.

NETiO Technologies, Inc. is a development-stage company that has focused its efforts from inception in late 1997 on designing and developing 10/100 Mbps and Gigabit Ethernet LAN products to serve the Ethernet switching market.

This press release contains forward-looking statements that involve risks and uncertainties. Actual results, including the level of earnings of both Davicom and NETiO, and the success of this transaction may differ from the results discussed in the forward-looking statements. Factors that might cause such a difference include, but are not limited to, risks associated with technology acquisitions, such as difficulties in the assimilation of operations, technologies and products of the companies, and risks of entering new markets, competitive response, and a downturn in the networking and communications equipment industry.