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To: J.S. who wrote (29875)	2/23/1998 8:52:00 PM
From: John Rieman	Respond to of 50808

These guys are a start-up, but with a pedigree. They use SGS Thomson and LSI chips(big relationship). Their box is too expensive, but they bare watching.................................. ijumpstart.com TeraLogic Makes Play for HDTV Component Business: Industry Ties, Engineering Expertise Are Strengths <Picture><Picture><Picture> Seventy percent of Silicon Valley start-up TeraLogic Inc.'s 50 employees are engineers dedicated solely to digital TV silicon and systems. And company executives believe such focus-coupled with a talent pool that has worked on high-profile projects-will make the difference when hardware OEMs start sourcing DTV components later this year. The majority of TeraLogic's executive team and engineers come from LSI Logic Corp. [LLSI] where they developed core technology for Sony Electronics Inc.'s [SNE] PlayStation video game console and EchoStar Communications Corp.'s [DISH] DVB set-top box. The LSI gang has expertise in MPEG-2 technology and video and graphics processors, some of which Thomson Consumer Electronics licensed for RCA DSS set-top boxes. TeraLogic's mission is to build HDTV components OEMs can build into set-top boxes that sell for $400 and make a profit. Executives said they can keep costs down because the architecture in development is not heavily dependent on memory and uses software for certain processing functions. The company will announce its initial silicon and reference design next month and has started sampling silicon to a few potential customers. The chip will be a graphics and video controller for standard definition TVs capable of displaying 480 progressive format with enough horsepower to display Internet content and data services. Kishore Manghnani, TeraLogic vice president of marketing, said the chip functions like a more powerful version of WebTV's core processor. TeraLogic's second offering will include all the chips necessary for HDTV except a demodulator. International Outlook The company will offer chips that meet the HDTV specifications in Japan as well as Europe to reach a wide market. "We believe we're the only company supporting the Japanese and European markets today," Manghnani said. To that end, TeraLogic has inked distribution deals in Japan, Korea, Taiwain and the U.K. with Marubun Corp., Dae Jin Semiconductor Co., Elitetron Electronics Co. and Silicon Highway, respectively. TeraLogic expects the initial DTV market in Europe to be for SDTV receivers and that the U.S. market will be mixed with demand for SDTV products and more expensive HDTV sets. In addition to those markets, TeraLogic is developing DTV components for convergence products, including PC-TVs, DVD players and Web set-top boxes. Manghnani said the company is watching the PC add-in card business for HDTV very closely, but the vendors he has spoken with don't expect to ship such products until mid-'99. Fab and Funding As for silicon, the company has a manufacturing arrangement with Singapore-based Chartered Semiconductor and is looking to add one or two more foundries. Vertex Management, Mayfield Fund and private investors contributed $15 million to the company's initial financing round. TeraLogic expects to announce an additional funding round shortly. Charles Wu, vice president of Vertex, sits on TeraLogic's board along with A. Grant Heidrich, a partner in Mayfield; Keisuke Yawata, former president of Applied Materials Japan, LSI Logic Japan and NEC Electronics; Bud Tribble, vice president of Sun Microsystems Inc. [SUNW] and TeraLogic executives Peng Ang and Jon Castor. Company at a Glance TeraLogic 707 California St., Mountain View, CA 94041-2005, tel 650/526-2000 teralogic-inc.com Names to know Peng Ang- chairman and CEO, Jon Castor- president and CFO, Charles Chui- CTO, David Auld- VP, systems engineering, Kishore Manghnani- VP, marketing, Murray McLachlan- VP, licensing, Leonardo Vainsencher- VP, VLSI Design Target markets HDTV, SDTV and convergence products in the United States, Asia and Europe

To: J.S. who wrote (29875)	2/23/1998 8:54:00 PM
From: JPM	Read Replies (1) \| Respond to of 50808

While talking about Milpitas CA, here are a few facts about the place... It's quite small, only one big road in the town if i remember, and CUBE is on Macarthy Blvd... CUBE has 3-4 large block-sized buildings, and across street is DiviCom which has a couple of buildings... across the road from DiviCom is LSI Logic, which is about 14 buildings big... all on the same street... about a mile up the road is QNTM and a few other tech stocks... but everything is within 5 minutes driving distance max... so no matter where in Milpitas Lucent is going, they are practically next door to CUBE/DiviCom...