Intel to Acquire Telecom Component Products Division of Stanford Telecommunications; Intel to Build on New Capabilities to Enter Cable and Broadband Wireless Market Segments.

SANTA CLARA, Calif.--(BUSINESS WIRE)--Sept. 23, 1999--

Intel Corporation today announced it has entered into a definitive agreement to acquire the Telecom Component Products (TCP) division of Stanford Telecommunications, Inc. in an all-cash transaction.

Stanford Telecom's cable and broadband wireless silicon expertise will support Intel's goal to become the premier supplier of communications silicon for the Internet economy.

The Sunnyvale, Calif.-based TCP division of Stanford Telecom provides silicon components for head-end equipment used by cable companies and broadband wireless service providers as well as customer premise equipment (CPE) such as cable modems and set-top boxes. Stanford's silicon components will also add new wide-area network (WAN) solutions at the physical, formatting and switching layers of Intel's Internet Exchange (IX) Architecture announced September 1. The IX Architecture is a set of "blueprints" for designing networking and telecommunications equipment using reprogrammable silicon.

Stanford's TCP business became available for purchase as a result of the pending merger between Stanford Telecom and Newbridge Networks. Under the agreement, Newbridge will retain Stanford's Wireless Broadband Products (WBP) and Satellite Personal Communications (SPC) groups.

"The acquisition of Stanford Telecom's cable and broadband wireless silicon division provides Intel with additional key silicon building blocks necessary to supply the rapidly growing bandwidth demands created by the Internet and e-commerce," said Mark Christensen, vice president and general manager of Intel's Network Communications Group. "Stanford's silicon components will strengthen our capabilities as a leading provider of broadband technology for voice, data and video applications."

"The cable and broadband wireless market segments share similar technical challenges," said Conrad Lewis, executive vice president, Access Products Group, Newbridge Networks. "We believe the combination of Stanford's silicon technology and Intel's technical and marketing strengths will help overcome these challenges to accelerate the deployment of cable and broadband wireless solutions industry-wide.

"As the industry leader in broadband wireless solutions, Newbridge looks forward to building on Intel's silicon technology and working with Intel to drive down costs and promote industry-standard specifications."

Upon completion of the merger, Stanford's TCP division will be integrated into Intel's Network Communications Group. The companies do not anticipate any immediate changes to either of their product lines. Specific financial terms of the acquisition were not disclosed.

About Intel

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

About Stanford Telecommunications

Stanford Telecom designs, manufactures and markets advanced digital communications products and systems to establish or enhance communications via terrestrial wireless, satellites and cable. Stanford Telecom was founded in 1973 and maintains headquarters in Sunnyvale, Calif. News and information are available at www.stelhq.com. About Newbridge Networks

Newbridge designs, manufactures, markets and services wide area networking solutions for Internet service providers; local, long-distance, and wireless communications companies; cable television carriers; and corporate customers in more than 100 countries. Newbridge customers include the world's 350 largest telecommunications service providers and more than 10,000 corporations, government organizations and other institutions. Founded in 1986, the Canadian company employs more than 6,000 people on six continents. News and information are available at www.newbridge.com.

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