Ikanos Port Shipments Surpass 5 Million Worldwide; Ikanos Maintains Leadership Position as Analysts Predict Strong Growth for VDSL Shipments Through 2008.

FREMONT, Calif. -- Ikanos Communications today announced that shipments of its Fiber-Fast(TM) Broadband chipsets have exceeded 5 million ports worldwide since volume production began in 2002. Carriers in Korea and Japan are now deploying equipment based on the fourth-generation Ikanos solutions, and carriers in Europe and North America are evaluating Ikanos chipsets as they plan deployment of new broadband services. Most recently, Ikanos introduced highly programmable Very-High-Bit-Rate Digital Subscriber Line 2 (VDSL2) chipsets for Central Office (CO) and Remote Terminal (RT) deployments and the Fx(TM) 100100 fiber extension product, the first to offer symmetric 100 Mbps performance over carriers' existing telephone lines.

According to the recent DSL semiconductor research report released in November 2004 by In-Stat MDR, "DSL ICs: Further, Faster, Cheaper," the sales growth rate of VDSL ports will outpace the sales growth rate of ADSL ports through 2008.

"VDSL ICs are by far the fastest growing segment of the overall DSL IC market. In-Stat MDR predicts that ADSL shipments will slow through 2008, while VDSL shipments will climb from 6.9 million ports in 2003 to 47.5 million ports in 2008," said Sam Lucero, industry analyst, In-Stat MDR. "As the only company currently deploying VDSL-DMT solutions, Ikanos Communications is in a unique position to enable carriers to meet consumer demand for high-bandwidth services today."

"We believe that Ikanos has become a dominant force in broadband silicon because we have consistently been first to market with solutions that enable carriers to provide high-bandwidth services to their customers," said Rajesh Vashist, president and CEO of Ikanos. "Ikanos has been shipping its Fiber-Fast broadband products since 2002, and our current chipsets are the culmination of four generations of product development experience."

Ikanos' programmable chipsets are currently deployed or in field tests in major carrier networks worldwide, including Japan, Korea, Europe, and North America.

Ikanos Products Include:

The Fx(TM) and FxS(TM) Family of Chipsets for the Fiber Extension Market

--Fx 100100, 10050, and Fx 7030 chipsets for Optical Network Units (ONU), Optical Line Terminals (OLT), switches, routers, and concentrators.

--Fx 100100S-4 and 10050S Subscriber Located Equipment (SLE) for ONTs.

The SmartLeap(TM) and CleverConnect(TM) Family of Chipsets for the VDSL Market

--SmartLeap 9400, 8100 and 8800 A/VDSL for DSLAMs and Central Office (CO)-to-Remote-Terminal (RT) deployments. Integrates VDSL-DMT and Ethernet in the First Mile (EFM) in a single programmable chipset solution.

--CleverConnect 600 and 300 for Customer Premise Equipment (CPE).

The Ikanos Programmable Operating System (iPOS(TM)) integrates a Real-Time Operating System (RTOS) kernel and management Application Programming Interfaces (APIs) that enable equipment vendors to easily tailor chipsets to specific application requirements.

About Ikanos Communications

Ikanos Communications is a leading developer and provider of highly programmable chipsets that enable Fiber-Fast(TM) broadband access over telephone companies' existing copper lines with transmission rates up to 100 Mbps. We believe Ikanos' silicon solutions enable OEM equipment vendors to serve many different customers while accelerating time to market and reducing costs.

(C) 2005 by Ikanos Communications. Ikanos Communications, Ikanos, the Ikanos logo design; Fx SmartLeap and CleverConnect are trademarks of Ikanos Communications. All Rights Reserved.

Cautionary Statement

This press release contains forward-looking statements that involve substantial risks and uncertainties, including statements relating to the expected growth of the market for our products. These forward-looking statements are subject to a number of assumptions, uncertainties, and risks, including the growth of the fiber-fast broadband market, the selection of carriers and other customers of VDSL over ADSL ICs, competition within the fiber-fast broadband market and competition from other technologies. You should not rely upon forward-looking statements as predictions of future events. We cannot assure you that the events and circumstances reflected in the forward-looking statements will be achieved or occur, nor do we undertake any obligation to update any forward-looking statements for any reason after the date of this press release.