Centillium Communications, Inc.

Laurie Falconer
Centillium Communications, Inc.
(510) 771-3647
[email protected]

ALCATEL ADOPTS CENTILLIUM'S ENTROPIA™ CHIPSET TO INTEGRATE VoATM INTO THE LITESPAN® PRODUCT FAMILY

Centillium Chipset Delivers 256 Compressed Voice Channels Over Packet Network

FREMONT, Calif., May 17, 2000 - Centillium Communications, Inc. announced its entry into the Voice-over-Packet market with a new chipset solution for compressing and processing high-capacity voice services over packet-based networks, initially starting with voice-over-ATM (VoATM). Alcatel (NYSE:ALA) selected Centillium's Entropia solution for a new integrated voice gateway in Alcatel's Litespan family of multiservice access platforms. The Entropia-based service card will allow network service providers to merge voice and data traffic onto one network and offer new services to customers.

"Entropia supports higher density than others in the industry and gives us the versatility we need to offer integrated voice and data to our customers," said Hamid Lalani, Vice President of Marketing for Alcatel's Wireline Access Division.

Centillium's Entropia chipset is a complete system solution that includes a communications digital signal processor (DSP), software for voice processing including compression, echo cancellation, ATM adaptation layer processing, and host API software. The Entropia chipset replaces the current practice of using general-purpose DSPs (capable of processing only 12 channels of voice) with a high-capacity system-on-a-chip solution that increases the voice processing by a factor of 20.

About Alcatel
Alcatel builds next generation networks, delivering integrated end-to-end voice and data communications solutions to established and new carriers, as well as enterprises and consumers worldwide. With 120,000 employees and sales of EURO 23 billion in 1999, Alcatel operates in more than 130 countries.

Alcatel's Litespan product family supports all the telecommunications and online services required today and tomorrow - voice, data, Internet, and transport. Litespan is versatile enough to offer all stages of services provisioning. It supports both the traditional Narrowband and the upcoming IP services, to provide network usage efficiency while paving the way for tomorrow's IP networks. For more information, visit Alcatel on the Internet at www.alcatel.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 (DLC) line cards, and customer premise equipment for Digital Subscriber Line (DSL), Voice over Packet (VoP) and Premise Networking. The Centillium Communications headquarters are 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 Annual Report on Form 10-K and most recent Quarterly Report on Form 10-Q, available for viewing on the Securities and Exchange Commission's website at www.sec.gov.

Centillium Communications and the Centillium logo are trademarks of Centillium Communications.