Conexant's End-to-End VDSL2 Solutions Chosen by Zhone for Triple-Play Broadband Service Deployments; New Products Targeted at High-Speed Voice, Video and Data Services

NEWPORT BEACH, Calif.—(BUSINESS WIRE)—Dec. 7, 2005— Conexant Systems, Inc. (NASDAQ: CNXT), a worldwide leader in semiconductor solutions for broadband communications and the digital home, today announced that Zhone Technologies, Inc. (NASDAQ:ZHNE), a company dedicated to building total-delivery solutions for voice, data, and video services, has chosen the company's end-to-end VDSL2 solutions for its new customer premises equipment (CPE) and Multi-Access Line Concentrator (MALC(TM)) broadband loop carrier. The addition of VDSL2 extends Zhone's product portfolio with higher-speed, longer-reach, and lower-cost solutions for multi-tenant and multi-dwelling unit (MxU), remote terminal and central office (CO) triple-play voice, video and data service deployments. VDSL2 technology provides higher downstream and upstream data rates than ADSL and ADSL2+, and longer reach connectivity than VDSL.

"Next-generation solutions that allow operators to leverage investments in their existing infrastructure will help drive the delivery of advanced programming and services over broadband networks," said Akram Atallah, vice president and general manager of Broadband Access for Conexant. "Zhone's and Conexant's respective solutions have been embraced by carriers worldwide. Many of these companies plan to offer triple-play services, and Zhone's new Conexant-based products will help facilitate these new service launches."

"We chose Conexant because of their expertise in DSL-based technologies and the early availability of their standards-compliant, high-performance VDSL2 solutions," said Eric Presworsky, vice president of product management for Zhone. "This enables us to provide our customers with solutions that extend the rate and reach of their existing networks, and allows them to economically generate additional revenue streams from triple-play voice, video and data services."

Conexant's Accelity VDSL2 CO device is the industry's highest-density solution, which enables very cost-effective, high-bandwidth VDSL2 designs. The company's high-performance VDSL2 CPE solutions are targeted at broadband residential gateways, modems, Ethernet bridges/routers, wireless local area networks, and integrated access devices (IADs).

Conexant has shipped more than 130 million DSL ports to customers around the globe. The company's CO and CPE semiconductor solutions include a full range of standards-based integrated circuits, software and reference designs for asymmetric and symmetric DSL applications. Additional products include a highly integrated, multi-application CO network processor for the next generation of intelligent DSL access equipment.

About Conexant

Conexant's innovative semiconductor solutions are driving broadband communications and digital home networks worldwide. The company has leveraged its expertise and leadership position in modem technologies to enable more Internet connections than all of its competitors combined, and continues to develop highly integrated silicon solutions for broadband data and media processing networks.

Key products include client-side xDSL and cable modem solutions, home network processors, broadcast video encoders and decoders, digital set-top box components and systems solutions, and dial-up modems. Conexant's suite of networking components includes a leadership portfolio of IEEE 802.11a/b/g-compliant WLAN chipsets, software and reference designs, as well as solutions for applications based on HomePlug(TM) and HomePNA(TM). The company also offers a complete line of asymmetric and symmetric DSL central office solutions, which are used by service providers worldwide to deliver broadband data, voice, and video over copper telephone lines.

Conexant is a fabless semiconductor company that recorded more than $720 million in revenues in fiscal year 2005. The company has approximately 2,400 employees worldwide, and is headquartered in Newport Beach, Calif. To learn more, please visit us at

About Zhone Technologies, Inc. (Zhone)

Zhone designs and manufactures network equipment for network operators worldwide. Zhone's products allow network operators to deliver a rich array of voice, data, video and entertainment services over their existing networks while simultaneously retooling for converged packet-based voice (VoIP) and video (IPTV) over copper or fiber access lines.

Zhone's advanced networking solutions include the Single Line Multi-Service architecture (SLMS(TM)), Multi-Access Line Concentrator (MALC(TM)), Raptor(TM) and GranDSLAM(TM) ATM/IP DSLAMs, ReachDSL(TM) Technology, FiberSLAM(TM) Optical Line Terminal, Zhone Residential Gateways (ZRG(TM)), GigaMux(TM) Optical Transport Systems and Zhone Management System (ZMS(TM)). With deployments at over 600 carriers including among some of the world's largest networks, Zhone has enabled network operators to reinvent their businesses. For more information, please visit

Conexant Safe Harbor

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: This release includes forward-looking statements intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally can be identified by phrases such as Conexant or its management "believes," "expects," "anticipates," "foresees," "forecasts," "estimates" or other words or phrases of similar import. Similarly, statements in this release that describe our business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. All such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those in forward-looking statements.

Our future GAAP-based results will be affected by the implementation of new accounting rules related to the expensing of stock options commencing in fiscal 2006. Other risks and uncertainties include, but are not limited to: general economic and political conditions and conditions in the markets we address; the substantial losses the company has incurred recently; the cyclical nature of the semiconductor industry and the markets addressed by the company's and its customers' products; continuing volatility in the technology sector and the semiconductor industry; demand for and market acceptance of new and existing products; successful development of new products; the timing of new product introductions and product quality; the company's ability to anticipate trends and develop products for which there will be market demand; the availability of manufacturing capacity; pricing pressures and other competitive factors; changes in product mix; product obsolescence; the ability of our customers to manage inventory; the ability to develop and implement new technologies and to obtain protection for the related intellectual property; the uncertainties of litigation and the demands it may place on the time and attention of company management; and possible disruptions in commerce related to terrorist activity or armed conflict, as well as other risks and uncertainties, including those detailed from time to time in our Securities and Exchange Commission filings.

The forward-looking statements are made only as of the date hereof. We undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

Conexant is a registered trademark of Conexant Systems, Inc. Other brands and names contained in this release are the property of their respective owners.

Conexant Systems, Inc.
Gwen Carlson, 949-483-7363

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