Intel Invests in Trillium Digital Systems; First Investment from Intel Communications Fund.

SANTA CLARA, Calif. and LOS ANGELES--(BUSINESS WIRE)--Sept. 16, 1999--

Intel Corporation and Trillium Digital Systems, Inc. today announced that Trillium has become the first company to receive an equity investment from the recently created Intel Communications Fund.

Intel created the $200 million Communications Fund to invest in companies supporting Intel's key programs and initiatives in voice and data communications.

Trillium will optimize and port its communications software for telephony, the Internet, wireless and broadband networks, to Intel's recently announced network processor and the Internet Exchange (IX) Architecture. The combination of Trillium software and Intel communications silicon will allow systems developers flexibility and reduced time to market for building networking gear with "off the shelf" hardware and software building blocks. In addition, Trillium will optimize selected communications software for embedded Intel Architecture (IA) processors to deliver a broad range of network services to the Internet.

"Trillium's award-winning line of communications protocol software solutions, optimized for the IX Architecture and Intel's embedded IA processors, will make a strong combination," said Jeff Lawrence, president and CEO, Trillium Digital Systems. "We're very enthusiastic about this new relationship with Intel. Equipment manufacturers will realize significant benefits from products that have been optimized to work with Trillium and Intel products."

"The rapid growth of the Internet is fueling increased demand for new functions and features to be quickly deployed in networking equipment," said Mark Christensen, vice president and general manager, Intel Network Communications Group. "Investing in and working with companies like Trillium, that share our vision for communications, allows us to accelerate the effort to help build smarter networks."

Intel's equity investment is part of a round of private financing received by Trillium. Specific financial terms of the investment by Intel were not disclosed.

The Intel Communications Fund was designed to make minority equity investments of typically less than $10 million. The Communications Fund is managed and funded by Intel.

Intel, the world's largest chip maker, is also a leading manufacturer of computer, network and communications products. Additional information about Intel is available at http://www.intel.com.

Trillium Digital Systems is The World's Source for Communications Software(TM), providing solutions for telephony, Intelligent Networks, Internet, wireless and broadband networks. Trillium solutions consist of communications software, support and value-added software integration, customization and consulting services for SS7, ATM, H.323, MPLS, IP, Wireless, ISDN, Frame Relay, V5 and X.25/X.75 technologies. Trillium also offers complementary solutions for fault-tolerance/high-availability, protocol interworking, Java and Software on Silicon(TM). Founded in 1988, Trillium has licensed its source code software to more than 250 companies for use in more than 400 projects worldwide. Additional company and product information is available on the Web at http://www.trillium.com.

Note to Editors: Trillium and Trillium Digital Systems are registered trademarks of Trillium Digital Systems, Inc. TAPA, Software on Silicon, and The World's Source for Communications Software are trademarks of Trillium Digital Systems, Inc. Other trademarks are trademarks (registered or otherwise) of the respective trademark owners.