On Topic: IBM / EZChip (LNOP) Sign Network Processor Deal
Absolutely huge validation of EZChip (LNOP subsidiary) today -- IBM will take a 5% equity stake in EZChip, and more importantly, plans to manufacture EZChip's 10-Gigabit network processors. Also learned today that Goldman Sachs led the last venture capital round ($22 million). Can't wait to hear what George Gilder has to say. Here's the press release:
biz.yahoo.com
Press Release
EZchip Technologies and IBM Sign Network Processor Technology Deal
IBM To Acquire an Equity Stake In EZchip
MIGDAL HAEMEK, Israel and EAST FISHKILL, N.Y.--(BUSINESS WIRE)-- Nov. 1, 2000--EZchip Technologies (a subsidiary of LanOptics Ltd., Nasdaq: LNOP) and IBM today announced a technology agreement intended to speed the introduction of EZchip's NP-1 network processors.
As part of the agreement, IBM will acquire a 5% equity stake in EZchip Technologies.
Under the agreement, IBM plans to manufacture EZchip's 10-Gigabit network processor using IBM's industry-leading semiconductor process technologies. IBM's SA-27E 0.18-micron ASIC (application specific integrated circuit) technology will be used to manufacture NP-1 prototypes, while volume production of NP-1 will utilize IBM's new 0.13-micron Cu-11 ASIC template - the first of its kind to offer combined performance benefits of copper wiring and low-k dielectric insulation.
``We have asked our customers their preference as to the manufacture of EZchip's network processors and the unanimous response was IBM due to their superb technology and unmatched reliability,'' said Eli Fruchter, President and CEO of EZchip. ``We believe this collaboration with IBM will help strengthen our customers' confidence in EZchip's NP-1 processor.''
EZchip's NP-1 10-Gigabit/OC-192 network processor features wire-speed, 7-Layer processing thanks to its TOPcore® technology, patent-pending algorithms and vast usage of embedded memory. IBM's leading-edge ASIC processes are instrumental in the realization and integration of these technologies into a single-chip solution.
``Our successful equity strategy is quickly paying dividends for both IBM and its customers,'' said Christine King, vice president of semiconductor products for IBM. ``We're committed to advancing innovations from emerging players like EZchip by providing access to our unparalleled semiconductor communications cores and technologies, such as Cu-11. In return, IBM gains a valuable stake in the future of companies who are building the networking technology infrastructure of the future.''
NP-1's embedded memory features hundreds of Gigabits per second worth of bandwidth and the capacity necessary for sustaining 10G processing. IBM's leading edge embedded DRAM technology provides these performance and density goals sought by EZchip's NP-1. Furthermore, IBM intends to develop specialized high-performance embedded DRAM cores for the communications market, which meet the rigorous requirements of EZchip's 10-Gigabit wire-speed processing.
About EZchip
EZchip Technologies is a fabless semiconductor company providing 10-Gigabit 7-Layer network processors. EZchip's breakthrough TOPcore® technology delivers 7-layer full-packet processing at 10-Gigabit wire speed, scalable to 40-Gigabit/OC-768. EZchip's single chip solutions enable building equipment with unprecedented port density while offering high-speed full-featured policy-based networking. The IBM investment is part of EZchip's recently announced $22 million second round financing led by JK&B Capital and Goldman Sachs. For more information on EZchip, visit our web site at ezchip.com.
About IBM
IBM Microelectronics is a key contributor to IBM's role as the world's premier information technology supplier. IBM Microelectronics develops, manufactures and markets state-of-the-art semiconductor technologies, products, packaging and services. Its superior integrated solutions can be found in many of the world's best-known electronic brands. More information about IBM Microelectronics can be found at www.chips.ibm.com.
``Safe Harbor'' statement under the Private Securities Litigation Reform Act of 1995: This release contains forward looking statements that are subject to risks and uncertainties, including, but not limited to, the impact of competitive products, product demand and market acceptance risks, reliance on key strategic alliances, fluctuations in operating results, delays in development of highly-complex products and other risks detailed from time to time in LNOP filings with the Securities and Exchange Commission. These risks could cause the Company's actual results for 2000 and beyond to differ materially from those expressed in any forward looking statements made by, or on behalf of LNOP.
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Contact:
IBM
Chris Andrews, 914/892-5389
Email:candrews@us.ibm.com
or
EZchip Technologies, Migdal Haemek, Israel
Daureen Green, ++972-6-644 9966
Email: dgreen@ezchip.com
or
AccessMillennium3 Inc.
Karen George, 562/597-8086
Email: karen@access-pr.com |
