Centillium - Press Release No: 6182004-73757-PM

Integrating the speed of eXtremeDSL^MAX with advanced security features and award-winning, multi-channel Voice-over-Internet-Protocol technology, Palladia 400 set to power next-generation Customer Premises Equipment

SUPERCOMM 2004, CHICAGO and FREMONT, Calif. (June 21, 2004) – Centillium Communications, Inc. (NASDAQ: CTLM), a leading provider of broadband access solutions, today announced Palladia^™ 400 – the world’s first integrated Asynchronous Digital Subscriber Line (ADSL2+/2++) and Voice-over-Internet-Protocol (VoIP) gateway-on-a-chip for next-generation Customer Premises Equipment (CPE).

End users in ADSL markets around the world have begun to purchase additional value-added services such as VoIP, Video-on-Demand (VoD), streaming media and online gaming. As demand increases for these types of services, network providers are looking to deploy next-generation CPE solutions that can deliver significantly higher bandwidth and enhanced services to consumers while improving the economics of deployment and driving additional revenue. According to a recent broadband subscriber forecast from industry research firm Dell’Oro Group, the total number of worldwide DSL subscribers is predicted to approach 99 million in 2004. Dell’Oro Group goes on to suggest that subscribers are migrating to VoIP in significant volumes, with voice enabled customer premises offerings on track to triple in 2004.

Designed to address the growth in demand for these types of enhanced services, Centillium’s Palladia 400 enables service providers to deploy home gateways, Integrated Access Devices (IADs), small office-home office (SOHO) voice routers, Internet Protocol telephone exchanges (IP PBXs) and other access products with ADSL2+/2++, VoIP, advanced security features and WiFi networking capabilities.

“Palladia 400’s unparalleled level of performance and features will enable service providers to increase their revenue opportunities by offering higher speed broadband access with differentiated voice, security and data services over existing copper telephone lines,” said Tony Shakib, vice president and general manager of Centillium’s Access and Networking Business Units. “While other companies have just begun touting their ability to offer 30 Megabits per second (Mbps) of downstream performance, consumers are already enjoying deployments of 40 Mbps downstream performance powered by Centillium’s Palladia product family. Palladia 400 is the next step in our continuing efforts to empower our customers to differentiate their product offering with advanced access technology and highly-integrated, feature-rich solutions for one of the fastest growing, most demanding broadband markets in the world.”

Bringing Voice, Wireless and Security to High Speed ADSL

The industry’s first fully-integrated, single-chip ADSL2/2+/2++ and VoIP solution, Palladia 400, exemplifies Centillium’s position as a leader in broadband access solutions. Based on Centillium’s eXtremeDSL^MAX™ technology, Palladia 400 offers an integrated 200MHz MIPS processor and a high-powered DSP designed specifically to process VoIP. Designed for up to 50 Mbps downstream broadband access with Centillium’s eXtremeDSL^MAX technology, Palladia 400 enables high quality VoIP calls simultaneously with secure, high-speed Internet access.

Palladia 400 supports a variety of voice codecs such as G.711 (PCM), G.729a/b, G.726.32 and G.723.1. The chip includes support for Caller Identification (Caller ID) – including Japan Caller Identification Protocol (JCLIP), Call Forwarding and Call Waiting. The chip also supports Generic Voice Activity Detection (VAD) and Comfort Noise Generation (CNG) and includes a Message Waiting Indicator, Tele-Conferencing, Call Hold and Pulse Dialing. All of these features support a toll-quality VoIP experience that will enable significant advantages to service providers and customers.

Palladia 400 also integrates an Internet Protocol Security (IPSec) engine with support for Data Encryption Standard (DES), Triple Data Encryption Standard (3DES) and Advanced Encryption Standard (AES), as well as Secure Hash and Message Digest hashing in hardware. Palladia 400’s built-in packet processing accelerator pushes system throughput to unparalleled wire-speed performance, while several I/O interfaces provide versatility. The on-chip PCI interface enables service providers to provide the highest performance wireless LAN solutions on the market to achieve industry leadership in price performance for ADSL + VoIP + Wireless LAN solutions.

Now available for sampling, Palladia 400 is offered with a software package that includes a real-time operating system, a VPN router-firewall software stack, full-featured voice software and a SIP stack. All of these features, integrated in Palladia 400 gateway-on-a-chip, combine to provide customers with the highest level of integration and time-to-market advantages.

About Centillium’s eXtremeDSL^MAX Technology

Already deployed and proven, Centillium’s eXtremeDSL^MAX technology offers a revolutionary feature set that optimizes the use of the ADSL spectrum to make significant improvements in the downstream and upstream bit rates and extends the reach of ADSL service while maintaining backward compatibility with ADSL, ADSL2, and ADSL2+ standards.

eXtremeDSL^MAX consists of several key features. eXtremeDSL^MAX Quad-Spectrum (MAX-QS) and eXtremeDSL^MAX Double-Spectrum (MAX-DS) offer increased downstream rates that go beyond the traditional 8 Mbps up to 50 Mbps and 24 Mbps, respectively, without introducing any adverse impact to existing services. The eXtremeDSL^MAX Long-Reach (MAX-LR) feature allows service providers to increase their ADSL coverage up to 22,000 feet (7,000 meters). The eXtremeDSL^MAX Extended-Upstream (MAX-EU) feature increases upstream rates up to 3 Mbps. The eXtremeDSL^MAX High Bit-Loading (MAX-HBL) feature allows more than 15 bits to be loaded per ADSL DMT subcarrier.

About Centillium Communications

Centillium Communications, Inc. is a leading provider of broadband access solutions with innovative systems-level products for the consumer, enterprise and service provider markets. The Company’s high-performance and cost-effective infrastructure and service enabler products give its

customers the winning edge in broadband access. Centillium Communications’ products include digital and mixed-signal integrated circuits and related hardware and software applications for Digital Subscriber Line (DSL) and Optical Networking equipment deployed in central offices and customer premises and Voice over Internet Protocol (VoIP) products for carrier- and enterprise-classgateways and consumer telephony. The Centillium Communications headquarters is located at 215 Fourier Avenue, Fremont, CA 94539. Additional information is available at www.centillium.com.

Forward Looking Statements

Except for statements of historical fact, this release includes statements that are forward-looking statements within the meaning of U.S. Federal securities laws, including statements relating to Centillium’s products targeting the ADSL and VoIP markets, ADSL deployment and the market for integrated ADSL and VoIP products. Actual results may differ materially from those indicated by such forward-looking statements based on a variety of risks and uncertainties, including without limitation the risks and uncertainties relating to rate and breadth of deployment of broadband access in general and optical access and Centillium’s technology solutions in particular; Centillium’s ability to continue and expand on its relationships with communications equipment manufacturers; and the successful development and market acceptance of Centillium’s new products and technology. Centillium undertakes no obligation to update forward-looking statements for any reason. Information about potential factors that could affect Centillium’s financial results is included in Centillium's Annual Report on Form 10-K and in other documents on file with the Securities and Exchange Commission.

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Christina Carrabino	Deborah Stapleton
CLC Communications	Stapleton Communications
(415) 929-9307	650-470-0200
[email protected]	[email protected]

Centillium Communications Launches World's First Integrated ADSL2+/2++ And VoIP Gateway-on-a-Chip

Centillium Communication’s, innovator of broadband technologies, unveils the industry’s most powerful ADSL technology with its Integrating the speed of eXtremeDSL^MAX with advanced security features and award-winning, multi-channel Voice-over-Internet-Protocol technology, Palladia 400 set to power next-generation Customer Premises Equipment SUPERCOMM 2004, CHICAGO and FREMONT, Calif. (June 21, 2004) – Centillium Communications, Inc. (NASDAQ: CTLM), a leading provider of broadband access solutions, today announced Palladia^™ 400 – the world’s first integrated Asynchronous Digital Subscriber Line (ADSL2+/2++) and Voice-over-Internet-Protocol (VoIP) gateway-on-a-chip for next-generation Customer Premises Equipment (CPE). End users in ADSL markets around the world have begun to purchase additional value-added services such as VoIP, Video-on-Demand (VoD), streaming media and online gaming. As demand increases for these types of services, network providers are looking to deploy next-generation CPE solutions that can deliver significantly higher bandwidth and enhanced services to consumers while improving the economics of deployment and driving additional revenue. According to a recent broadband subscriber forecast from industry research firm Dell’Oro Group, the total number of worldwide DSL subscribers is predicted to approach 99 million in 2004. Dell’Oro Group goes on to suggest that subscribers are migrating to VoIP in significant volumes, with voice enabled customer premises offerings on track to triple in 2004. Designed to address the growth in demand for these types of enhanced services, Centillium’s Palladia 400 enables service providers to deploy home gateways, Integrated Access Devices (IADs), small office-home office (SOHO) voice routers, Internet Protocol telephone exchanges (IP PBXs) and other access products with ADSL2+/2++, VoIP, advanced security features and WiFi networking capabilities. “Palladia 400’s unparalleled level of performance and features will enable service providers to increase their revenue opportunities by offering higher speed broadband access with differentiated voice, security and data services over existing copper telephone lines,” said Tony Shakib, vice president and general manager of Centillium’s Access and Networking Business Units. “While other companies have just begun touting their ability to offer 30 Megabits per second (Mbps) of downstream performance, consumers are already enjoying deployments of 40 Mbps downstream performance powered by Centillium’s Palladia product family. Palladia 400 is the next step in our continuing efforts to empower our customers to differentiate their product offering with advanced access technology and highly-integrated, feature-rich solutions for one of the fastest growing, most demanding broadband markets in the world.” Bringing Voice, Wireless and Security to High Speed ADSL The industry’s first fully-integrated, single-chip ADSL2/2+/2++ and VoIP solution, Palladia 400, exemplifies Centillium’s position as a leader in broadband access solutions. Based on Centillium’s eXtremeDSL^MAX™ technology, Palladia 400 offers an integrated 200MHz MIPS processor and a high-powered DSP designed specifically to process VoIP. Designed for up to 50 Mbps downstream broadband access with Centillium’s eXtremeDSL^MAX technology, Palladia 400 enables high quality VoIP calls simultaneously with secure, high-speed Internet access. Palladia 400 supports a variety of voice codecs such as G.711 (PCM), G.729a/b, G.726.32 and G.723.1. The chip includes support for Caller Identification (Caller ID) – including Japan Caller Identification Protocol (JCLIP), Call Forwarding and Call Waiting. The chip also supports Generic Voice Activity Detection (VAD) and Comfort Noise Generation (CNG) and includes a Message Waiting Indicator, Tele-Conferencing, Call Hold and Pulse Dialing. All of these features support a toll-quality VoIP experience that will enable significant advantages to service providers and customers. Palladia 400 also integrates an Internet Protocol Security (IPSec) engine with support for Data Encryption Standard (DES), Triple Data Encryption Standard (3DES) and Advanced Encryption Standard (AES), as well as Secure Hash and Message Digest hashing in hardware. Palladia 400’s built-in packet processing accelerator pushes system throughput to unparalleled wire-speed performance, while several I/O interfaces provide versatility. The on-chip PCI interface enables service providers to provide the highest performance wireless LAN solutions on the market to achieve industry leadership in price performance for ADSL + VoIP + Wireless LAN solutions. Now available for sampling, Palladia 400 is offered with a software package that includes a real-time operating system, a VPN router-firewall software stack, full-featured voice software and a SIP stack. All of these features, integrated in Palladia 400 gateway-on-a-chip, combine to provide customers with the highest level of integration and time-to-market advantages. About Centillium’s eXtremeDSL^MAX Technology Already deployed and proven, Centillium’s eXtremeDSL^MAX technology offers a revolutionary feature set that optimizes the use of the ADSL spectrum to make significant improvements in the downstream and upstream bit rates and extends the reach of ADSL service while maintaining backward compatibility with ADSL, ADSL2, and ADSL2+ standards. eXtremeDSL^MAX consists of several key features. eXtremeDSL^MAX Quad-Spectrum (MAX-QS) and eXtremeDSL^MAX Double-Spectrum (MAX-DS) offer increased downstream rates that go beyond the traditional 8 Mbps up to 50 Mbps and 24 Mbps, respectively, without introducing any adverse impact to existing services. The eXtremeDSL^MAX Long-Reach (MAX-LR) feature allows service providers to increase their ADSL coverage up to 22,000 feet (7,000 meters). The eXtremeDSL^MAX Extended-Upstream (MAX-EU) feature increases upstream rates up to 3 Mbps. The eXtremeDSL^MAX High Bit-Loading (MAX-HBL) feature allows more than 15 bits to be loaded per ADSL DMT subcarrier. About Centillium Communications Centillium Communications, Inc. is a leading provider of broadband access solutions with innovative systems-level products for the consumer, enterprise and service provider markets. The Company’s high-performance and cost-effective infrastructure and service enabler products give its customers the winning edge in broadband access. Centillium Communications’ products include digital and mixed-signal integrated circuits and related hardware and software applications for Digital Subscriber Line (DSL) and Optical Networking equipment deployed in central offices and customer premises and Voice over Internet Protocol (VoIP) products for carrier- and enterprise-classgateways and consumer telephony. The Centillium Communications headquarters is located at 215 Fourier Avenue, Fremont, CA 94539. Additional information is available at www.centillium.com. Forward Looking Statements Except for statements of historical fact, this release includes statements that are forward-looking statements within the meaning of U.S. Federal securities laws, including statements relating to Centillium’s products targeting the ADSL and VoIP markets, ADSL deployment and the market for integrated ADSL and VoIP products. Actual results may differ materially from those indicated by such forward-looking statements based on a variety of risks and uncertainties, including without limitation the risks and uncertainties relating to rate and breadth of deployment of broadband access in general and optical access and Centillium’s technology solutions in particular; Centillium’s ability to continue and expand on its relationships with communications equipment manufacturers; and the successful development and market acceptance of Centillium’s new products and technology. Centillium undertakes no obligation to update forward-looking statements for any reason. Information about potential factors that could affect Centillium’s financial results is included in Centillium's Annual Report on Form 10-K and in other documents on file with the Securities and Exchange Commission. # # # Centillium Communications, Palladia, eXtremeDSL^MAX and Centillium’s logo are trademarks of Centillium Communications, Inc. Copyright © 2004 Centillium Communications, Inc. All rights reserved.



Centillium Communications, CopperFlite, eXtremeDSL, eXtremeRate, eXtremeReach and the Centillium Logo are trademarks of Centillium Communications. Copyright 2004 Centillium Communications, Inc. All rights reserved. All other products or service names mentioned herein are the property of their respective owners.