Microtune's New MT2060 Silicon Tuner Breaks the Power Barrier For VoIP Cable Phone Services.

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Business Editors/High-Tech Writers

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PLANO, Texas--(BUSINESS WIRE)--April 26, 2004

Microtune Offers the Lowest-Power Single-Chip Tuner from a Product

Family with a Certified DOCSIS Pedigree; Slashes RF Cost, Space and

Power for Carrier-Grade Digital Cable Phone Service.

Addressing the critical radio frequency (RF) power and pricing issues central to the rollout of Voice over Internet Protocol (VoIP) cable phone services, Microtune(R), Inc. (Nasdaq:TUNE) today introduced a single-chip tuner that cuts RF costs by 25%, space by 25% and power by 40% compared to its previous generations. When integrated into subscriber premise equipment, the new MicroTuner(TM) MT2060 enables cable operators to deliver primary-line telephony that meets carrier-class levels of quality, service and reliability.

The MT2060 delivers the price/performance, power efficiency and reliability required in DOCSIS(TM)-based telephony modems and PacketCable(TM)-based embedded multimedia terminal adapters (E-MTAs). It can also be integrated into performance-hungry consumer devices -- multi-tuner digital set-top boxes, DVB-T and DVB-C set-top boxes, PC/TVs and flat-panel LCD TVs.

Fabricated in silicon germanium for very high performance, the MT2060 is a complete broadband tuner with integrated intermediate frequency (IF) filter, low-noise amplifier and input controls. It is packaged into a miniature, multi-functional 1/4-inch square chip that operates with a 3.3-volt supply. The tuner consumes only one watt of power and features a software-selectable operating mode that dissipates a mere 800 milliWatts, the lowest power for a high-performance silicon tuner in the industry.

"Cable telephony forms an integral part of cable operators' triple play of video, voice, and data services, and it is now poised to reach the majority of U.S. cable TV subscribers," explained Mike Paxton, senior analyst with technology research firm In-Stat/MDR. "Power is a critical issue for cable modems and other consumer access products that utilize VoIP for primary-line telephony service. A tuner that consumes only one watt of power will be an important step forward for RF technology in VoIP cable products."

"Microtune is a leading supplier of tuners for broadband communications applications, including circuit-switched cable telephony," said James A. Fontaine, Microtune's President and CEO. "We brought this market experience, backed by RF technology deployed in millions of DOCSIS-certified cable modems, to the development of the MT2060. With it, we are driving the high performance of our field-proven, DOCSIS-certifiable dual-conversion architecture into a very low-power tuner. We are also the first in the industry to integrate the first IF filter into a dual-conversion tuner, driving down costs."

"With the MT2060," Mr. Fontaine added, "we provide a robust, low-BOM cost RF solution that can help drive the cable adoption of VoIP digital phone services. At the same time, we have taken the first technology step in developing low power tuners for other new classes of applications, such as handheld TVs."

Low Power without Sacrificing Performance

The MT2060 is engineered to deliver low power without sacrificing performance. Based on Microtune's patented dual-conversion tuner architecture, it delivers low phase noise, low noise figure and high linearity. It offers immunity to interference in cable networks with severe differences in signal strength across the input frequency band, ensuring quality signals across the entire system. These technical parameters are required to ensure not only minimum distortion in voice applications, but also reliability in high-speed Internet connections and clear, crisp pictures in video applications.

With its high levels of integration, the MT2060 allows for simplified and cost-efficient system design, compact architectures and reduced RF circuit footprint and bill of materials (BOM) costs. As an implementation and time-to-market advantage, the MT2060 interfaces directly to all standard demodulator chips, eliminating the need for customized products.

Industry Comment on the MT2060

"Terayon is committed to developing industry-leading cable access products that offer aggressive integration, performance, power- and cost-reduction roadmaps," said Stuart Friedman, Vice President and General Manager, Subscriber Products, Terayon Communications Systems, Inc. "Backed by our extensive DOCSIS experience, we provide high-quality voice and data solutions with the broadest range of features and standards support. Microtune's new MT2060 tuner provides key electronics that will support the continued evolution of our cable modem products and further enable us to serve the VoIP market with advanced, competitive offerings."

"Cable telephony offers the cable industry an effective strategy for providing growth and earnings, and ARRIS has played a major role in helping worldwide operators deliver primary line telephony to their subscribers," said ARRIS Broadband President Jim Lakin. "As we develop a broad line of new VoIP products to serve this emerging market, power and cost are critical considerations. Microtune's new MT2060 tuner enables subscriber premise equipment that helps meet the rigorous demands of toll-quality VoIP."

"As a leading supplier of VoIP silicon and software solutions worldwide, TI offers a comprehensive range of solutions with features that enable customers to quickly develop and deploy their VoIP equipment," said Dennis Rauschmayer, Director of Cable Broadband Marketing at Texas Instruments Incorporated. "Microtune's new MT2060 works seamlessly with TI's VoIP gateway products to provide a simple, high-performance, low-power implementation."

Price and Availability

The MT2060 tuner is sampling now and is priced at $5.00 in quantities of 10,000. Initial production is planned for Q3, 2004. To simplify evaluation and design, Microtune also offers a MT2060 Evaluation Board and Cable/Telephony Modem Reference Design.

For More Information

For more information about the MT2060 tuners and Microtune's complete suite of radio frequency (RF) solutions, visit Microtune's website at www.microtune.com.

About Microtune

Microtune, Inc. is a silicon and subsystems company that designs and markets radio frequency (RF)-based solutions for the worldwide broadband communications and transportation electronics markets. Inventors of the MicroTuner(TM) single-chip broadband tuner, Microtune offers a portfolio of advanced tuner, amplifier, and transceiver products that enable the delivery of information and entertainment across new classes of consumer electronics devices. The Company currently holds 29 U.S. patents for its technology. Founded in 1996, Microtune is headquartered in Plano, Texas, with key design and sales centers located around the world. The website is www.microtune.com.

Microtune Forward-Looking Statements 

All statements in this press release other than statements of historical fact are forward-looking statements that are subject to risks and uncertainties that could cause such statements to differ materially from actual future events or results. Such forward-looking statements are generally accompanied by words such as "plan," "if," "estimate," "expect," "believe," "could," "would," "anticipate," "may," or other words that convey uncertainty of future events or outcomes. These forward-looking statements and other statements made elsewhere in this release are made in reliance on the Private Securities Litigation Reform Act of 1995. Factors which could cause actual results to differ include the Company's ability to introduce new products, achieve design wins, forecast revenue and manage inventory levels, control and budget expenses, protect its proprietary technology and intellectual property, and successfully prosecute and defend the various lawsuits, any of which may cause the Company's financial results to fluctuate. Readers are referred to the reports and documents filed by Microtune with the Securities and Exchange Commission from time to time, including its Form 10-K for the year ended Dec. 31, 2003.

EDITOR'S NOTE: The Data over Cable Systems Interface Specification (DOCSIS) and PacketCable are industry standards, developed by CableLabs(R), for developing interoperable cable modems and access devices.

Microtune is a registered trademark and MicroTuner, MicroStreamer and VideoCaster are trademarks of Microtune, Inc. All other company and/or product names may be trade names, trademarks and/or registered trademarks of the respective owners with which they are associated. Features, pricing, availability, and specifications are subject to change without notice.

Copyright (C) 2004 Microtune, Inc. All rights reserved.

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