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Centillium and Mitsubishi Electronics Announce Strategic Manufacturing Alliance to Provide Chip Set and System-on-a-chip Solutions for DSL Market

FREMONT, Calif., October 12, 1998 -
Centillium Technology Corporation, a leader and innovator in the emerging market for DSL (Digital Subscriber Line) chipset solutions, and the Electronic Device Group of Mitsubishi Electronics America Inc., the global leader in integrating systems in silicon, today announced their strategic manufacturing alliance to deliver chip set and system-on-a-chip solutions for the DSL market. . The alliance provide Centillium with production capacity support, which will enable the Company to meet the projections for ongoing customer demand for its xDSL chip set solutions. The joint efforts of the companies have resulted in an xDSL ASIC chip that integrates Centillium's digital signal processing technology (DSP) with Mitsubishi's high speed SRAM (static random access memory) to provide a cost effective and highly integrated solution.

The alliance between Centillium and Mitsubishi Electronics represents a new approach to customer relationships in the chip industry. Mitsubishi Electronics is an investor in Centillium and has a strong stake in the company's long-term success. In addition to manufacturing the ASIC, Mitsubishi also customized its SRAM and PLL library macro cells for Centillium and provided its extensive I/O expertise to optimize the design. Moving forward, the companies plan to continue to collaborate on delivering higher levels of xDSL performance by integrating additional key DSL system functions into a single chip.

"As a fabless semiconductor company with very large competitors, we must take proactive steps to reduce our risk in the marketplace, especially in the areas of system-on-a-chip manufacturing and product quality," said A. Travis White, President and CEO of Centillium. "As the world leader in implementing major system functions into a single piece of silicon, Mitsubishi will enable Centillium to deliver reliable, highly integrated chipset and system-on-a-chip solutions."

"As one of the major semiconductor manufacturers in the world, Mitsubishi can bring large amounts of capacity online quickly to meet unexpected increases in product demand," said Takao Nishimura, President, Mitsubishi Electronics America's Electronic Device Group. "We believe our manufacturing capabilities, combined with our renowned eRAM™ system integration portfolio, provide Centillium with high levels of availability, fast time-to-market, higher overall chip quality, and unprecedented system performance."

About Mitsubishi Electric and Mitsubishi Electronics America

One of the world's top 10 semiconductor suppliers, Mitsubishi Electric Corporation and Mitsubishi Electronics America are global leaders in system-on-a-chip solutions. Mitsubishi is the first company to successfully integrate memory - especially DRAM, processor and other core logic functions in the same piece of silicon with its highly acclaimed eRAM™ technology. eRAM™ is Mitsubishi's brand name for its silicon process technology, products, and systems expertise that integrate memory and system-level core functions on the same integrated circuit to enable unprecedented overall system performance. The Electronic Device Group of Mitsubishi Electronics America provides system-level chip design services and marketing and sales support to North American-based customers.

Additional information on Mitsubishi Electric Semiconductor Group is available

About Centillium

Founded in April 1997, Centillium Technology is a fabless semiconductor company developing ITU-T G.Lite-compliant Digital Subscriber Line (DSL) solutions for manufacturers of telecommunications equipment. The company was co-founded by Faraj Aalaei, Shahin Hedayat, Babu Mandava, Tony O'Toole and Kamran Elahian, one of the best known figures in Silicon Valley. Mr. Elahian has co-founded two highly successful semiconductor companies, Neomagic and Cirrus Logic, as well as numerous other ventures.

Centillium has raised over $20 million from several leading investment firms, including U.S. Venture Partners, Walden International Ventures, Vertex Ventures, Korea Technology Banking, and VentureStar, as well corporate investors that include Askey Computer, GVC, Mitsubishi Corporation, Mitsubishi Electronics America, Sumitomo Electric Industries, and ZyXEL Communications.

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 Trademark Information

eRAM is a trademark of Mitsubishi Electronics America Inc.
Mitsubishi Electric and the three diamond logo are registered trademarks of Mitsubishi Electric Corporation

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