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Non-Tech : Amati investors
AMTX 1.600-1.8%Jan 9 9:30 AM EST

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To: pat mudge who wrote (11310)3/4/1997 9:13:00 AM
From: John Hunt   of 31386
 
Tuesday March 4 8:04 AM EDT xDSL Chip-Maker GlobeSpan Technologies Inc. Breaks $40 Price Barrier As It Prepares To Ship Powerful Third-Generation Cap Chipset Ahead Of Schedule

GlobeSpan Announces Over 100,000 xDSL Chipsets Shipped To-Date

RED BANK, N.J., March 4 /PRNewswire/ -- The gap between CAP and competing line codes continues to widen, as GlobeSpan Technologies Inc., a leading supplier of xDSL chipsets, today announced three significant developments regarding price reductions, record-setting volume shipments, and availability of a next-generation CAP-based xDSL chipset.

Together, these three announcements spotlight GlobeSpan's flagship role in the telecommunication industry's move toward widespread deployment of low-cost, multi-megabit Internet and data access over ordinary copper phone lines.

In the first announcement, GlobeSpan reported the early release of its powerful, new, third-generation .35 micron chipset, that delivers over 1-1/2 times the clock speeds of the current .5 micron product. In addition, the Company announced that shipments of the current chipset have reached record levels, with over 100,000 shipped to date, including nearly 50,000 over the last two months alone. These factors have enabled GlobeSpan to slash the volume price of its chipsets down to $39 (US), setting a new benchmark for xDSL price/performance.

"The overwhelming success of commercial xDSL deployments using CAP products has resulted in great demand for GlobeSpan(TM) chipsets. We are pleased to share with our customers the benefits that only GlobeSpan's CAP technology can provide in terms of Cost, Availability, and Performance," said Jim Michaels, vice president of marketing and business development for GlobeSpan Technologies.

Price Reductions And Record-Setting Volume Shipments

Today's price reduction reflects GlobeSpan's continuing commitment to translate increasing volume sales into cost savings for GlobeSpan customers. In September 1996, the Company reduced its volume price dramatically -- from more than $88 down to $44 per unit. Just six months later, the Company is now breaking the $40 price barrier, as it announces that total shipments have exceeded the 100,000 mark and continue to grow at an accelerated rate.

These price reductions are particularly significant because GlobeSpan is currently the only company delivering advanced multi-application xDSL (ADSL, RADSL, SDSL, and HDSL) chipsets in commercial quantities. While there has been a proliferation of pricing projections from other DSL chip developers, none of them has shipped product in commercial quantities, and exact shipment dates are as yet unknown.

"Our enormous increase in shipments is based, in part, on the fact that GlobeSpan CAP chipsets are the first fully programmable devices that offer solutions for ADSL, RADSL, SDSL, and HDSL applications by simply changing the software," Michaels continued. "This versatility is critical to meeting the emerging requirements of a wide range of Internet-enabled applications."

Third-Generation Chipsets Based on Carrierless Amplitude and Phase Modulation (CAP)

Continuing its long-standing leadership role in the DSL market, GlobeSpan CAP-based technology has now advanced to its third-generation offering, while others have yet to deliver a first generation commercial product. Service providers can leverage the unsurpassed speed and reach of these advanced GlobeSpan chipsets to help guarantee xDSL service availability to a greater percentage of customers in impaired loop-plant environments.

Exceeding all expectations, GlobeSpan will deliver samples of the new chipset to its customers ahead of schedule, by the end of this month (March 1997). Large-scale volume shipments are scheduled for the end of the second quarter of 1997.

GlobeSpan Technologies Inc. is the number one supplier of high-performance, power-efficient chipsets for Digital Subscriber Line (xDSL) equipment, offering solutions for ADSL, RADSL, SDSL, and HDSL applications. More than 35 equipment manufacturers around the world use GlobeSpan chipsets as the foundation for xDSL transmission systems that provide high-speed access to the Internet, corporate Intranets, videoconferencing, and other bandwidth intensive applications. Based in Red Bank, New Jersey, GlobeSpan Technologies can be reached at + 1-908-345-7500 or toll free in the U.S. at 888-855-4562 or on the Web at globespan.net.

GlobeSpan is a trademark of GlobeSpan Technologies Inc. All other trademarks are the property of their respective owners. SOURCE Globespan Technologies, Inc.
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