Efficient Networks and TI Enter into Strategic Relationship to Advance Modem Technology for the Evolving ADSL Market

7/16/2002 - Efficient Networks Inc., a subsidiary of Siemens Corp. and a world leader in digital subscriber line (DSL) customer premises equipment (CPE) and comprehensive broadband solutions, and Texas Instruments Incorporated (TI) (NYSE: TXN), announced today that the two companies will be working together to develop the next generation of Efficient Networks´ ADSL modems for deployment worldwide. The collaboration will leverage both companies´ ADSL expertise to supply service providers with innovative, high volume deployable modem solutions for today´s demanding business environment.

"While the DSL market continues to grow at a healthy pace worldwide, the overall economic slowdown and consolidation within the CLEC segment of the market has caused instability in the DSL vendor market," said Pat Hurley, DSL Analyst at TeleChoice, Inc. "LECs and PTTs want high performance, cost competitive solutions, and in the current economic conditions, solutions from companies with ongoing DSL investments and long term market viability are desired. Partnerships of established vendors, like that between Efficient Networks and TI, help service providers by confirming these companies' commitment to the DSL market."

"Texas Instruments can deliver the performance, interoperability and manufacturing capacity to give Efficient Networks improved access to the worldwide market and enhance our competitive position as the market regains traction," said Tom Willie, vice president, SpeedStream® Product Group at Efficient Networks. "With new standards for interoperability and performance being required from service providers, this collaboration positions us to exceed expectations and drive the evolving ADSL market worldwide."

Efficient Networks will be developing products based on TI's family of ADSL CPE chipsets for bridges, routers and residential gateways. TI's AR5 chipsets are based on TI's broadband communications processors, DSP-based ADSL physical layer (PHY) technology and firmware. The chipset provides a complete system solution enabling Efficient Networks to quickly develop and deploy high-performance DSL products. Additionally, because the AR5 has an open software architecture, Efficient Networks is able to add differentiating higher-layer networking and application software to TI's broadband communications processors.

"The combination of Efficient Networks' leading DSL market position and TI's robust interoperability and volume production capabilities should propel the DSL industry to the next level of worldwide deployments," said Greg Jones, general manager of TI's DSL Business Unit. "By working together, we will ensure that the next generation of Efficient Networks' modems will address new market opportunities and expand their footprint."

As a world leader in DSL CPE, Efficient Networks will offer a wide portfolio of DSL CPE products including single, dual and four-port routers for Annex A and Annex B deployments. By enabling end-users to self-install, Efficient Networks´ bridges and routers reduce the need of a truck-roll for onsite support by the service provider. (See www.efficient.com/)

About Texas Instruments DSL
Texas Instruments provides customers low-power, high-density DSL infrastructure solutions and the building blocks for a variety of DSL CPE including bridges, routers, voice-enabled and 802.11-enabled solutions for local loop deployments. Leveraging the company´s history of innovation in DSL technology development, interoperability testing, customer support and manufacturing capabilities, TI enables customers to meet the requirements of operators worldwide. TI´s DSL business is part of TI´s comprehensive portfolio of broadband solutions including cable modems, Voice over Internet Protocol (VoIP) gateways, carrier infrastructure, and home and office wireless networking. (See www.ti.com/sc/broadband)

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