ITEX-BASED ADSL MODEMS NOW SHIPPING TO MAINLAND CHINA.

Integrated Telecom Express, Inc. ("ITeX" ) (Nasdaq: ITXI), a provider of ADSL integrated circuits and software, has disclosed that ADSL modems powered by its full-rate Apollo 3 PCI chipset are currently shipping in volume into Mainland China. Destined for use by China Telecom, the ITeX-based modems are manufactured and marketed by QxComm, Inc., a major modem and LAN equipment supplier based in Beijing.

Significantly, the ITeX-based modem from QxComm is the industry's first ADSL PCI modem solution certified by the Quality Supervision & Testing Center for Data Communication Products, a branch of the Chinese government's Ministry of Information Industry. This certification is necessary before modem products can be distributed and approved for use by telephone companies in China.

"We expect our ITeX-based modems to play a key role in the rapid deployment of ADSL technology over the vast copper telephone network in China," said Mr. Dong Bing, Chairman of QxComm. He noted that QxComm enjoys strong brand recognition in China as well as extensive channel relationships with PC OEMs and system integrators. He added, "With the integration of ITeX's telco-approved ADSL technology into our modems, we are well positioned to enable broadband Internet access across the entire China Telecom network."

"We are pleased that QxComm has selected our popular Apollo 3 chipset to accelerate ADSL modem deployment in China," said Mr. Jow Peng, VP of Marketing for ITeX. He continued, "The early and rapid certification of our Apollo 3 chipset underscores its high performance, stable operation, and industry-wide interoperability with Central Office equipment, in addition to its patented auto-configuration capability for different ADSL standards." Mr. Peng expects ITeX's easy-to-use software to further enable deployment of broadband access as the market moves towards self-installation by ADSL subscribers.

Apollo 3 is fully compliant with ANSI T1.413 Issue 2, G.dmt and G.lite standards. It is capable of operating at up to 8 Mbps downstream from the Central Office to Customer Premises Equipment and 800 Kbps upstream. ITeX supplies software drivers that support all standard wide area network (WAN) protocols including Bridged Ethernet over ATM, Classical IP over ATM, PPP over ATM, and PPP over Ethernet. Extensive operating system support includes Windows 95/98/2000/Me/NT4.0 and Linux. Windows XP support is underway. ITeX has shipped close to 2 million Apollo family chipsets worldwide.