Microtune Introduces the Industry's First Commercially Available RF-NIU Subsystem, Enabling the Market for Mainstream Cable Telephony Applications.

Business Editors & High Tech Writers

DALLAS--(BUSINESS WIRE)--July 9, 2001

Microtune(TM), Inc. (NASDAQ: TUNE) today introduced the industry's first commercially available and standards-based radio frequency (RF) `home gateway' solution for enabling primary-line cable telephony via broadband cable networks. Called the MT4950, the product is a new class of RF subsystem that, when integrated into a network interface unit (NIU), delivers integrated voice, video and data services. Based on Microtune's RF proprietary silicon, tuner cores and new patent-pending technologies, the MT4950 is designed to break the RF price/performance barriers for cable equipment suppliers in fueling the growth of the cable telephony market.

Microtune also announced today the MicroStreamer(TM) MT1540, the newest member of its MicroStreamer family of amplifiers. Integrated into the MT4950 to transmit return data via the cable network, the MicroStreamer MT1540 is optimized to meet the severe performance and power requirements of cable telephony applications.

Based on a hybrid circuit-switched/Internet Protocol (IP) architecture, the MT4950 RF-NIU provides for price-competitive, carrier-class voice services today, while offering a migration path to future standards-based Voice over IP (VoIP) platforms. The MT4950, unlike existing, proprietary solutions, supports both circuit-switched and DOCSIS-based implementations.

"Microtune's MT4950 RF-NIU is an important stepping stone in the development of the cable telephony market," said Mike Paxton, a cable industry analyst at Cahners In-Stat Group. "For the first time, OEMs that supply cable customer premises equipment can forego the significant investment in time and money needed to develop complex RF-NIU transceiver technology."

According to Cahners In-Stat Group, worldwide cable telephony subscribers will rise to 20 million in 2005.

The NIU, along with specialized servers, head-end, transport and switching equipment, is one of the critical building blocks for the delivery of multiple types of cable traffic to the home. Resembling a utility box, the NIU is located on the outside of the residence. The MT4950 serves as the critical RF communications hub for the NIU, providing the RF broadband links from the cable drop to multiple access devices (telephones, set-top boxes, cable modems) inside the home. In effect, the MT4950 represents the convergence of cable modem and traditional circuit-switched telephony functions integrated into a full-featured RF home gateway device.

Packaged in a small 2" x 4" form factor, the MT4950 integrates a DOCSIS-based tuner and the new, higher-performance MT1540 upstream amplifier along with the functions of a network bias tap, high-voltage safety capacitors, primary lighting protection and network coupler into a single, cost-effective RF subsystem. It offers full two-way communications capability to provide high-quality reception and transmission of analog and digital signals, whether generated as IP or continuous bit-streaming data. It enables telephony data to be extracted from the RF broadband signal, and permits video and data to be relayed to set-top boxes or cable modems, all without a degradation of service or loss of quality.

"Microtune's integrated off-the-shelf RF solution can make it economically feasible for cable operators to deliver lifeline telephone services powered over their HFC networks," said Will Strauss, president of Forward Concepts. "The MT4950 and its pioneering RF silicon address the power and technical challenges that previously limited the market to expensive proprietary NIU solutions. With this latest introduction, Microtune continues to strengthen its position as an RF industry leader in cable broadband solutions."

The MT4950 RF-NIU is engineered to deliver the industry's highest-performance integrated tuner solution with the lowest power consumption, meeting the complex, discriminating requirements of integrated video, voice and data services. The MT4950 manages RF bandwidth for optimum efficiency. Features for low insertion/high return loss, low phase noise, low conducted emissions, low upstream harmonics and extended operating-temperature ranges provide for improved signal purity, translating into higher data throughput. As a result, the NIU enables cable operators to provide telephony voice services with public-switched telephone network quality, with minimum call distortion or unacceptable pauses (latency), and without diminishing the quality of the TV picture or Internet surfing speed.

To ensure minimum network power consumption, a critical parameter in cable telephony designs, the MT4950 typically cuts the required power by up to 50% compared to existing proprietary solutions. It also offers network powering capabilities to handle the backup power required for `lifeline' support, enabling the telephone to operate even when power is lost to the residence.

Of critical importance, with temperature compensation and thermally robust circuit designs, the MT4950 operates over extreme temperature ranges in demanding outside environments. Featuring safety capacitors, a high-current bias tap, and creepage and clearance spacing, the MT4950 also meets stringent UL and ETSI safety regulations to provide for lightning and surge protection. Both safety compliance and `lifeline' support are features critical for primary-line telephone service.

INNOVATIVE RF TECHNOLOGIES FOR THE NIU

Engineered as a scalable, robust and feature-rich system, the MT4950 deploys unique RF technology invented by Microtune to meet highly specialized performance, power and cost parameters of cable telephony applications. The company developed the MicroStreamer MT1540 and engineered it to offer high 67 dBmV linear output power capable of overcoming coupler and diplexer losses. The chip is also designed to deliver the industry's best harmonic distortion performance, ensuring high performance of the upstream path, and to provide the industry's lowest power consumption for a high-power amplifier.

Additionally, Microtune developed an innovative RF interface to the network, including high-grade F-connectors, network coupler, safety capacitors and bias tap, that is based on patent-pending technology. The system housing was designed to provide a ridged mechanical structure to support two industrial-grade, SCTE-compliant F-connectors. The F-connectors, designed as low-cost, mass-production insertable, low loss, SCTE SP 401 outdoor F- connectors, are also based on patent-pending technologies.

In order to meet the strict DC power consumption requirements, Microtune also developed an intermediate frequency (IF) amplifier structure for a variant of the product. This circuit, based on a patent-pending design, provides fixed IF gain and thermally corrects large gain variations due to the extreme temperature variations (-40C to +75C) inherent with the cable telephony application.

"Microtune is committed to the cable telephony market. As cable operators implement a variety of strategies in bringing voice services to their subscribers, our goal is to provide a range of cost-optimized RF solutions that can evolve with them over time," explains Douglas J. Bartek, chairman and CEO of Microtune. "The MT4950 is a natural evolution of our silicon/systems approach, and it demonstrates our strengths in developing, innovating and integrating RF chips and technologies into complete, pretested solutions that continue to set price/performance standards."

PRICING AND AVAILABILITY

The MT4950 is sampling now and is priced at $35.00/unit in quantities of 10,000. Microtune will also work with OEMs and cable equipment suppliers to customize the RF-NIU to specific price/performance targets. The MicroStreamer MT1540 Upstream Amplifier is also available as a standalone component; the chip is sampling now and is priced at $2.00/unit in quantities of 10,000. For more information on these products, including Product Briefs and White Papers, visit Microtune's web site at www.microtune.com.

ABOUT MICROTUNE

Microtune Inc. is a leading RF silicon and systems company that designs, manufactures and markets RF broadband 'gateway' solutions for use in cable modems, set-top boxes, PC/TV multimedia, TV/digital TV, automotive entertainment and other consumer electronics. Inventors of the MicroTuner(TM) single-chip broadband tuner and a family of silicon broadband amplifiers, the company currently holds fourteen U.S. patents for its RF technology, with an additional twelve pending approval, containing a total of more than 1000 supporting claims. Founded in 1996, Microtune is headquartered in Plano, Texas, with key design, manufacturing and sales centers located around the world. The web site is www.microtune.com.

FORWARD LOOKING STATEMENT

This press release contains forward-looking statements, including those discussing the joint development efforts of the companies and the results of those efforts, 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," "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 companies' abilities to develop jointly new products that comply with industry standards and are accepted within the cable-based broadband communications industry, and the ability to migrate customers to silicon-based products, ability to develop new products within anticipated cost range, and general economic conditions that have affected the broadband communications markets recently, any of which may cause either 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 December 31, 2000 and Form 10Q for the quarter ended March 31, 2001.

EDITORS NOTE:

Microtune, MicroTuner and MicroStreamer are trademarks of Microtune, Inc. All other trademarks are the property of their respective owners.