Sumitomo Electric Selects Centillium Communications for Universal Serial Bus ADSL Modem Chipsets.

Business Editors/High-Tech Writers

FREMONT, Calif.--(BUSINESS WIRE)--March 6, 2001

Centillium's Plug-and-Play USB Chipset Solution

Enables Carriers in Japan's Accelerating DSL Market

To Deploy Quickly and Cost Effectively

Centillium Communications, Inc. (Nasdaq:CTLM), innovator of broadband communications technology, today announced a partnership with Sumitomo Electric Industries  (SEI) to provide a high-performance customer premises equipment (CPE) solution to the Japanese market. SEI, a total solutions provider in broadband networking, will integrate Centillium's high-performance, Universal Optimizer(TM) USB chipset solution into its CPE equipment. This USB chipset solution, which supports both Annex A and C, alleviates global deployment issues while meeting the explosive demand for DSL in Japan.

"This is a very exciting time for SEI," stated Hideo Takahashi, vice president of Business Development, Sumitomo Electric U.S.A., Inc. "Unlike the rest of the world, Japan's existing telephone network uses TCM-ISDN, and therefore requires special DSL solutions like those provided by Centillium. We believe our customers will be delighted with the consumer-deployable offering they will receive with Centillium's advanced CPE solution. Together, Centillium and SEI will take the Japanese DSL market to a new level."

Centillium's USB chipset solution demonstrates the company's continued commitment to satisfying the needs of Japan's unique DSL market. SEI has chosen Centillium's Universal Optimizer for its highest throughput performance, and ease-of-use characteristics. The Universal Optimizer is fully compliant with all industry standards, including USB v1.1, making the technology fully interoperable.

"Centillium is excited to be working with SEI for this benchmark technology," stated Dori Braun, vice president of Marketing, access business unit for Centillium. "We have worked hard to ensure that our CPE solution is superior to others on the market providing the user with a cost-effective solution offering plug and play, easy installation and configuration process. SEI's proven leadership in the industry will allow for the continued growth and success of DSL deployment, making DSL a more cost-effective and attractive solution for not only consumers, but also small businesses."

This partnership reinforces Centillium's leadership and aggressive approach in Japan's DSL market, which is another step in establishing a strong international presence. Centillium has been developing solutions for Japan's DSL market since 1997. By partnering with one of the most prominent equipment providers in the world, Centillium will continue to deliver its external USB and external routers to ensure the Japanese market has a superior option for their networking needs.

About Sumitomo Electric Industries

With offices located around the globe, SEI is recognized as one of the pioneers in xDSL technology development. With its early entry into market, the company has been able to accumulate a wealth of technology and deployment experience. SEI's xDSL products "MegaBit Gear" series, including both CPE and Central Office equipment, have been widely adopted by various telecommunications companies in Japan and abroad. To date SEI has shipped over 100,000 lines worth of xDSL equipment, thereby earning itself the top spot among Japanese manufacturers. Additional information is available at www.megabitgear.com.

About Centillium Communications

Centillium Communications, Inc. is combining technical innovation and customer commitment to make broadband communications a market reality. Centillium consistently delivers value to its customers by providing broadband networking systems for applications across all market segments. The company designs and markets communications chipset solutions for central office equipment, digital loop carrier line cards, and customer premise equipment for Digital Subscriber Line (DSL), premise networking and Voice-Over-Packet. Centillium Communications, Inc. is located at 47211 Lakeview Blvd., Fremont, CA 94538. Additional information is available at www.Centillium.com.

Forward Looking Statements

Except for historical information contained in this press release, the foregoing contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those indicated by such forward-looking statements based on a variety of risks and uncertainties, including the risks and uncertainties relating to actual quantities and timing of any orders received under the contract and the successful development and market acceptance of Centillium's new products. The company assumes no obligation to update these forward-looking statements to reflect events or circumstances after the date hereof. Information about potential factors that could affect Centillium's financial results is included in Centillium's most recent Quarterly Report on Form 10-Q, which can be viewed at the Securities and Exchange Commission's website at www.sec.gov.

Note to Editors: Centillium Communications and the Centillium logo are trademarks of Centillium Communications.

All other products or service names mentioned herein are the property of their respective owners.