Virata and Tdsoft Partner to Deliver VoDSL Solutions for Next-Generation Integrated Access Devices.

Business Editors/High-Tech Writers

SANTA CLARA, Calif. & HERZLIA, Israel--(BUSINESS WIRE)--Jan. 15, 2001

Virata Demonstrates Interoperability of Azurite IAD Reference Design;

Joins Tdsoft's VoNGA Partner Program

Virata(R) Corporation (Nasdaq:VRTA) and Tdsoft Ltd., a leading provider of Voice over Next Generation Access (VoNGA) solutions, today announced that Virata has successfully demonstrated the interoperability of its Azurite(TM) integrated access device (IAD) reference design with Tdsoft's VoNGATE(TM) voice access gateway.

Together, Azurite and VoNGATE are expected to be able to provide the V5 capability required to fully support PSTN (Public Switched Telephone Network) switch infrastructures in Asia and Europe. Virata has also joined Tdsoft's VoNGA partner program, which should allow Virata's customers to bring IADs to market that are fully interoperable with Tdsoft's VoNGA solutions.

"The interoperability of our Azurite IAD reference design with Tdsoft's VoNGATE voice gateway is expected to allow small to medium-sized businesses, small offices/home offices (SOHOs) and high-end residential customers to benefit from multiline voice services and high-speed data over a single pair of wires," said Duncan Greatwood, Virata's vice president of marketing. "Our relationship with Tdsoft should allow us to provide a convenient and flexible design platform that supports seamless interoperability with leading voice gateway vendors, which should in turn further simplify the product development process for our customers."

The Azurite IAD reference design interoperates with Tdsoft's VoNGATE voice gateway based on the approved ATM Forum standard for Loop Emulation Services (VMOA-AF0145). The Azurite chipset and software that form the heart of the IAD reference design include Virata's Helium(TM) communications processor and Magnesium(TM) voice processor, as well as Virata's integrated multi-protocol software stack and all the voice algorithm and quality of service functions needed to deliver multiple voice channels and data over a single DSL line.

"The collaboration with Virata as a member of our VoNGA partner program is expected to increase interoperability at the IAD product development stage and reduce the time to market for a fully interoperable end-to-end VoDSL solution. This is expected to enable carriers and services providers to quickly deliver multiple lines of telephone service and fast Internet access over DSL networks," said Gil Eyal, Tdsoft's vice president of sales and marketing.

About Virata's Azurite Chipset and Communication Processors

The 3000-series Azurite chipset features Virata's leading Helium communications processor with its new Magnesium voice processing DSP, voice processing software, voice control systems, ATM, packet, internet protocol, bridging and routing network protocols, and hardware reference design to create a complete and seamless solution for DSL Integrated Access Devices. The 3000-series chipset can be used with any DSL physical-layer implementation including ADSL and SDSL.

Helium is a low-cost, PHY-neutral communications processor that enables high-speed Internet access capability for single- and multiple-user endpoint devices such as USB modems, home gateway devices and small office/home office (SOHO) routers. The Helium chip is fully integrated with a complete networking and protocol software suite that handles ATM, frame, routing, bridging and signaling functions, as well as SNMP management.

Magnesium bundles the powerful C54x DSP family from Texas Instruments with Virata's vCore, a complete line of voice processing algorithms and control-side device drivers under the Virata brand. This provides broadband equipment developers with access to the industry's first Integrated Software-on-Silicon (ISOS) voice processing product.

About Tdsoft's VoNGATE

Tdsoft's VoNGATE is a versatile voice access gateway that enables telephone companies, competitive carriers and service providers to provide high-quality voice services over a variety of broadband access technologies such as xDSL, cable and wireless. As an open platform, VoNGATETM is capable of supporting a combination of PSTN switch interfaces, access infrastructures and access technologies at the same time. VoNGATETM supports:

-- V5.2, GR-303, TR 008, CAS or proprietary voice switch interfaces

-- Next Generation Access Networks based on Cable, xDSL or Broadband Wireless infrastructure

-- ATM, IP and TDM access technologies

Availability

The Azurite chipset and reference design are available now. Pricing varies depending on the configuration (which DSP, communications processor) the customer chooses. For more information, customers and prospective customers should visit the Virata website at www.virata.com or contact your local sales rep.

About Tdsoft

Tdsoft designs, develops, markets and sells VoNGA solutions, access concentrators and switch simulators for the telecommunications industry. Tdsoft open solutions enable service providers to add voice services over broadband access infrastructure (Cable, xDSL, and Wireless). Tdsoft products demonstrated interoperability with more than 50 access equipment vendors and 16 voice switches in 25 countries. Established in 1994, Tdsoft is a privately held company financially backed by leading US and international venture capital firms. For more information, please consult the Tdsoft site at www.tdsoft.com.

About Virata

Virata provides communications software and semiconductors to manufacturers of DSL, wireless, satellite and other broadband networking equipment. Virata's suite of processor-independent software products provide developers with complete, field-proven implementations of networking functions, including ATM, MPLS, and web servers, removing the need to write and validate new software code.

Virata also pre-integrates its extensive suite of communications software with its powerful and cost-effective communications processors to create "integrated software on silicon" (ISOS) products. These ISOS solutions enable customers to develop a diverse range of broadband wireless and wireline equipment including DSL modems, gateways, routers, and integrated access devices targeted at the voice and high-speed data network access and customer premises markets. Virata's products enable equipment manufacturers to simplify product development, reduce the time it takes for products to reach the market and focus resources on product differentiation and improvement.

Virata is a principal member of the ATM Forum, Bluetooth SIG organization, the DSL Forum, HomePNA, ITU, MPLS Forum, OpenDSL Alliance and UPnP Forum. A publicly traded company on the Nasdaq Stock Market, Virata was founded in 1993 and is headquartered in Santa Clara, California. Please visit www.virata.com for more details about Virata and its products.

Virata is a registered trademark and Azurite, Helium and Magnesium are trademarks of Virata Corporation. All other trade, product, or service names referenced in this release may be trademarks or registered trademarks of their respective holders.

Virata Forward-Looking Statement:

Except for historical information contained herein, this press release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially. Due to increasing uncertainties in the company's market, the company's degree of visibility on future revenues and earnings and associated confidence level in forecast information is less than in past quarters. Factors that might cause a difference include, but are not limited to, those relating to general business and economic conditions, evolving industry standards, the pace of development and market acceptance of our products, those of our customers and the DSL market generally, the rate of DSL deployments, commercialization and technological delays or difficulties, changes in customer order patterns and the product volume of such orders, the financial condition of our customers, risks of customer loss, the impact of competitive products and technologies, competitive pricing pressures, manufacturing availability and risks, dependence on third party suppliers, the uncertainties associated with international operations, the possibility of our products infringing patents and other intellectual property of third parties, risks due to limited protection of our intellectual property, product defects, costs of product development, our ability to attract and retain employees, the company's ability to extract value from acquisitions, manufacturing and government regulation and other risk factors listed from time to time in the reports and other documents Virata files with the Securities and Exchange Commission, including without limitation, the report on Form 10-Q for the quarter ended October 1, 2000. Virata assumes no obligation to revise or update the forward-looking statements contained in this press release to reflect events or circumstances after the date hereof.