Broadcom Leads in Shipment of Gigabit Ethernet NIC and LOM Controller

10/21/2004 - Broadcom Corporation (Nasdaq: BRCM), a leading provider of highly integrated semiconductor solutions enabling broadband communications, announced that it has captured the number one worldwide market share position in shipments of Gigabit Ethernet (GbE) controllers according to two leading independent research firms IDC and Dell'Oro. Broadcom was able to attain this position by continuing to be first to market with next generation features in its NetXtremeTM controller family, as well as providing leading OEMs with a roadmap of future functionality such as Broadcom's recently announced Converged Network Interface Controller (C-NIC), which integrates four separate network functions over a single Ethernet fabric.

According to IDC, Broadcom attained the number one market share position by capturing a 47% share of the NIC/LOM (Network Interface Card/LAN-On- Motherboard) controller market, surpassing Intel's NIC/LOM controller port shipments for the period beginning January 1, 2004 and ending June 30, 2004. This information will be available in an upcoming IDC report entitled, "Worldwide Ethernet Semiconductor Market Update" scheduled to be published in November 2004.

According to Dell'Oro Group, Broadcom LOM unit shipments increased 6% from the first quarter of 2004 to the second quarter, while Intel's LOM shipments decreased 4% over this same time frame. As outlined in Dell'Oro's "Q2 2004 Quarterly Ethernet Switch" report published in August 2004, Broadcom surpassed Intel achieving 50% of the total Gigabit Ethernet controller shipment market in the second quarter of 2004 compared to Intel's 44% share. Broadcom not only surpassed the leading competitor, but also gained share from the other competitors as well.

"We're extremely pleased about the tremendous success we've had with the NetXtreme family of GbE controllers over the past several years," said Greg Young, Senior Director and General Manager of Broadcom's High-Speed Controller Line of Business. "Going forward, we are even more enthusiastic about our outlook for both our NetXtreme and the revolutionary NetXtreme II product families. Not only are we seeing fantastic growth with the NetXtreme controller family as we continue to gain share, but we are also very well positioned to redefine Ethernet communications as we know it today based on our NetXtreme II family of converged network controller solutions."

This significant milestone demonstrates the widespread adoption of Broadcom® NetXtreme GbE controllers within the enterprise and throughout the business PC market. Based upon seven generations of field-proven reliability, the NetXtreme family continues to be the controller of choice in business desktops, notebooks, workstations and servers from all leading Tier 1 OEM PC manufacturers. Broadcom's NetXtreme GbE controllers are featured as the standard integrated LOM connection for products from Dell, HP, IBM, Fujitsu- Siemens, NEC, Fujitsu, Acer and many others. As a pioneer of Gigabit Ethernet-over-copper integrated circuit technology, Broadcom has led the industry migration from legacy 10/100 Fast Ethernet (FE) to Gigabit Ethernet in PCs and servers and continues to strategically invest in leading edge Ethernet technology, affording Broadcom's continued market leading success through first-to-market features, software consistency, and world-class reliability and stability.

As reported by IDC, Broadcom achieved its market share leadership based on its success in securing Gigabit Ethernet NIC/LOM designs with Tier 1 OEMs. By continuing to strategically invest in NetXtreme technology and working closely with Tier 1 partners, Broadcom has achieved a number of industry firsts with its NetXtreme technology, including being the first to manufacture a single- chip integrated GbE controller, the first to support the PCI-XTM and PCI ExpressTM industry standard bus interfaces, the first to utilize 0.13-micron process technology for Ethernet controllers, and the first to deliver the revolutionary Converged-NIC solution that performs four separate network functions over a single Ethernet fabric.

"Broadcom achieved healthy growth as its NetXtreme GbE product line ramped up into corporate desktops and notebooks," said Sean Lavey, Semiconductor Program Manager for IDC. "For the first half of 2004, Broadcom shipped 12.5 million NIC/LOM ports to place first in the rankings."

The latest members of the NetXtreme controller family represent the world's first GbE controllers to implement the advanced PCI Express host interface. As enterprise servers and clients migrate to increasingly faster Ethernet speeds, PCI Express allows the LAN connection architecture to scale in parallel with end users' throughput requirements. The Broadcom BCM5721 (for high-performance servers), BCM5751 (for desktop and workstation PCs) and BCM5751M (for mobile PCs) are designed specifically to address the needs of these high performance computing platforms.

Broadcom recently introduced its family of next generation Ethernet controllers called Converged-NICs (or C-NICs). A C-NIC combines the functions of four separate networks into one dynamic, multi-functional network. The recently introduced BCM5706 C-NIC includes an integrated Transmission Control Protocol/Internet Protocol (TCP/IP) offload engine (TOE), iSCSI host bus adapter functionality, Remote Direct Memory Access (RDMA) technology for clustering, and remote system management. The next generation NetXtreme II family of Gigabit Ethernet controllers is the first line of controllers in the industry to simultaneously perform storage networking, high-performance clustering, accelerated TCP/IP data networking and remote system management pass-through functions at a cost intended to promote ubiquitous adoption of the technology.

Broadcom's Gigabit Ethernet networking product portfolio includes switching products, transceivers, security processors and controllers for servers, workstations, desktops and mobile PCs, providing the industry's most comprehensive portfolio of Gigabit Ethernet solutions. Its GbE solutions are the most widely deployed and field proven in the industry.

About Broadcom
Broadcom Corporation is a leading provider of highly integrated semiconductor solutions that enable broadband communications and networking of voice, video and data services. We design, develop and supply complete system-on-a-chip (SoC) solutions incorporating digital, analog, radio frequency (RF), microprocessor and digital signal processing (DSP) technologies, as well as related hardware and software system-level applications. Our diverse product portfolio addresses every major broadband communications market, and includes solutions for digital cable and satellite set-top boxes; high definition television (HDTV); cable and digital subscriber line (DSL) modems and residential gateways; high-speed transmission and switching for local, metropolitan, wide area and storage networking; home and wireless networking; cellular and terrestrial wireless communications; Voice over Internet Protocol (VoIP) gateway and telephony systems; broadband network and security processors; and SystemI/OTM server solutions. These technologies and products support our core mission: Connecting everything®.

Broadcom is headquartered in Irvine, Calif., and may be contacted at 1-949-450-8700 or at

Broadcom®, the pulse logo, Connecting everything®, the Connecting everything logo, NetXtremeTM and SystemI/OTM are trademarks of Broadcom Corporation and/or its affiliates in the United States and certain other countries. PCI-XTM and PCI ExpressTM are trademarks of PCI SIG Corporation.

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