Ikanos Ships over 200,000 VDSL-DMT Ports Wordlwide; Milestone Comes Shortly After the Company Begins Volume Production of Its Silicon Solution.

Business Editors/High-Tech Writers

FREMONT, Calif.--(BUSINESS WIRE)--Feb. 12, 2003

Ikanos Communications, developer of Smart Silicon For Profitable Broadband(TM), today announced that it has shipped over 200,000 ports of its SmartLeap(TM) 8100 Very High Bit Rate Digital Subscriber Line-Discrete Multi-Tone (VDSL-DMT) chipsets since volume production began less than four months ago. About 95 percent of the ports represent deployable lines. With other chip technologies, only about half the ports shipped translate into lines deployed resulting in huge inventory. Ikanos is the only vendor shipping production chipsets for a performance of over 65 Mbps in the entire VDSL market, enabling carriers to accelerate the VDSL deployment and stay ahead of their competition.

Ikanos' silicon solution is gaining considerable customer traction worldwide, with the majority of shipments going to equipment vendors in Asia, including Japan, Korea, and China, and in Europe. Ikanos, which is on track to ship one million ports by middle of 2003, is working with top vendors to ensure that carriers and operators worldwide can use VDSL-DMT solutions to deploy very-high-bandwidth, triple-play services--voice and video, data, and high-speed Internet access -- to the mass market.

Ikanos has already established strong customer relationships with top equipment vendors around the world. In 2002, the company announced customer wins with Sumitomo Electric Industries  (Japan), NEC (Japan), Hyundai Networks (Korea), ZyXEL (Taiwan), and VDSL Systems (Scandinavia), where major broadband deployments are under way and several other major customers are to be announced.

Ikanos' standards-based solution is instrumental to the mass deployment of VDSL-DMT equipment and services. Vendors are turning to Ikanos chipsets because DMT is more attractive to carriers than products that employ chipsets based on VDSL-Quadrature Amplitude Modulation (VDSL-QAM). DMT offers higher speeds, longer reach, better performance under noisy conditions, and adaptability to emerging applications such as Ethernet in the First Mile (EFM). In addition, DMT is standard for ADSL transmission, so VDSL-DMT chipsets can easily migrate into carriers' existing infrastructure.

"In the few months since we started volume shipments, we have ramped up the sales of VDSL-DMT chipsets considerably at the expense of VDSL-QAM," said Richard Sekar, vice president of marketing, Ikanos. "We are very pleased to see the kind of momentum the VDSL-DMT is gaining worldwide since carriers recognize the technical benefits that DMT offers compared to QAM-based solutions. Ikanos is at the forefront of the evolution to VDSL-DMT and demand for our chipsets is growing rapidly."

Ikanos' high-performance VDSL-DMT chipset is the first to support all international VDSL-DMT standards for North America, Europe, and Asia, as well as the ATM and Ethernet protocols, in a single chipset. Equipment vendors use the Ikanos chipsets to develop end-to-end solutions for the Metro Fiber Extension (MFE), Multi-Tenant/Multi-Dwelling Unit (MxU) and Central Office/Remote Terminal (CO/RT) markets, while slashing time to market and lowering development, manufacturing, and inventory costs. The chipsets are based on a highly integrated architecture that allows Ikanos to offer industry-leading port density and enables the design of smaller, simpler products with lower chip counts. The integrated architecture has also allowed Ikanos to dramatically reduce the Bill of Material (BOM) for system vendors. Vendors can thus provide solutions to carriers at competitive prices, allowing carriers to shorten the return on their VDSL investment.

About Ikanos Communications

Founded in 1999 and based in Silicon Valley, Ikanos Communications has created a new class of silicon that serves the entire range of worldwide broadband markets and applications with a single programmable chipset. Ikanos' industry-leading solution includes the SmartLeap(tm) 8100, SmartLeap(tm) 8800 A/VDSL for broadband access concentrators and the CleverConnect(tm) 150 for Customer Premise Equipment. These chipsets form an end-to-end broadband solution that enables access equipment vendors to serve many different customers while slashing time to market and lowering development, manufacturing, and inventory costs. Ikanos also offers the Ikanos Programmable Operating System(tm) (iPOS), which consists of firmware and APIs. iPOS enables equipment vendors to dynamically configure LRFE, EFM, VDSL-DMT 998, VDSL-DMT 997, VDSL-DMT Flex, and ADSL-DMT on Ikanos chipsets.

Ikanos Communications provides comprehensive offerings that encompass silicon, embedded software, reference designs, high-level APIs, and extensive documentation. Ikanos is a member of, and contributes to, ANSI, the IEEE 802.3 EFM Study Group, DSL Forum, and ITU-T. For additional information about Ikanos Communications, please visit the company's Web site at www.ikanos.com or contact Connie Henry at 1.510.438.6276 or [e-mail].

Note to Editors: Ikanos Communications, Ikanos, and the Ikanos logo design are trademarks of Ikanos Communications.