For Centillium:

Susie Reeves

Reeves & Associates

(650) 577-0688

[email protected]

 

CENTILLIUM TECHNOLOGY CLOSES $38 MILLION IN THIRD-ROUND FINANCING

FREMONT, Calif., May 18, 1999 - Centillium Technology Corporation, a leader in Digital Subscriber Line (DSL) chipset solutions, today announced that it has received $38 million in its third round of capital financing. Centillium will use this round of institutional investment to strengthen product development, engineering, sales/marketing, and customer applications support to facilitate a rapid revenue ramp. Led by Integral Capital Partners, new Centillium investors include General Motors Investment Management; GE Equity Capital; Goldman, Sachs Group; J.&W. Seligman & Company; Velocity Capital Management; Creative Technology / Creative Labs and Lehman Brothers Inc.. Creative Technology joins the top modem manufacturers Askey, GVC, and ZyXel as industry investors. Also participating significantly in this round are original venture investors Walden International Investment Group, U.S. Venture Partners, Vertex Management and Korea Technology Bank. Lehman Brothers Private Equity Group acted as exclusive placement agent for the transaction.

"Centillium has identified the right solution for an explosive market," said Roger McNamee, General Partner, Integral Capital Partners. "Centillium's management team has the unique depth of semiconductor and telecommunications experience, the right strategy, and the focus on execution required to be successful in this fast growing market. Centillium truly combines the experience of an established player with the responsiveness of a startup."

"This is our third investment in Centillium since 1997," said Lip-Bu Tan, Chairman, Walden International Investment Group. "At every stage, we re-evaluate Centillium's progress in product development and engineering, manufacturing agreements, sales and marketing efforts, and staffing. And each time, we find that Centillium has exceeded our expectations both in terms of executing their overall strategy and staying focused on day-to-day tactics."

"The strength of the management team and the high quality of Centillium's first to market and industry leading G.Lite chip sets for both the CO and CPE markets led to an overwhelming demand for the securities," according to Dan Myers, Vice President and Senior Semiconductor Analyst in the Equity Research Group at Lehman Brothers Inc. "Investors realized early on in the process that Centillium is the industry trailblazer in all major areas: port density; power dissipation, programmability, product roadmap and overall business plan performance; they continue to under promise and over deliver in every respect."

"Our goal is to enhance Centillium's leadership position in broadband communication solutions," said Travis White, President and CEO. "The DSL market is growing fast and we want to be at the forefront of both technological innovation and customer service and support. This financing will allow us to expand our product lines and accelerate the time-to-market for key products, which will enable us to capture critical early market share and establish powerful barriers of entry to our competitors."

About Centillium Technology

Centillium Technology is a communication solutions company dedicated to delivering high-speed Internet access to bandwidth-hungry businesses and consumers. The company designs and markets Digital Subscriber Line (DSL) chipset solutions for central office equipment, DLC line cards, and customer premises equipment. Centillium's chipset family is the industry's highest port density, lowest power dissipation solution available to networking equipment manufacturers today. Additional information is available at http://www.centillium.com.

For sales information, contact Al Gharakhanian at (510) 360-5054.

© 1999 Centillium Technology Corp. CopperLite is a trademark of Centillium Technology Corp. AFC, the AFC logo, Universal Modular Carrier, and UMC 1000 are registered trademarks of Advanced Fibre Communications, Inc. All of products or service names mentioned herein are the property of their respective owners.