Centillium Communications, Inc.

Laurie Falconer
Centillium Communications, Inc.
(510) 771-3647
[email protected]

CENTILLIUM COMMUNICATIONS RACES INTO VOICE OVER IP MARKET WITH HIGHEST DENSITY SINGLE CHIP SOLUTION SUPPORTING 336 CHANNELS

Entropia Chip's Superior Performance, Including Support for IP and ATM, Promises Market Leadership

FREMONT, Calif., April 2, 2001 - Centillium Communications, Inc. [Nasdaq: CTLM], innovator of broadband communications technology, today announced its next generation Entropia Voice over Packet (VoP) chip supporting Voice over Internet Protocol (VoIP) and Voice over Asynchronous Transfer Mode (VoATM) Adaptation Layer Types 1 and 2 (AAL1 and AAL2). The Entropia chip leads the market with capability to process 336 channels of either Pulse Code Modulation (PCM) or Adaptive Differential PCM (ADPCM) on a single chip. This chip provides ultimate flexibility of selecting AAL1, AAL2, or IP network protocols on a per channel basis.

"Centillium's Entropia VoP system-on-a-chip will enable gateway and multi-service access device vendors to be first to market by offering a highly-flexible, high-performance, cost-effective, standards-compliant solution," said Katherine Bowen, an analyst for Cahners In-Stat Group, a leading market analyst firm. "The introduction of this new version of the Entropia chip is further evidence of Centillium's leadership position in the market."

"Our latest Entropia chip, supporting both IP and ATM protocols on a single chip, is proof of our devotion to delivering cutting-edge, superior technology to our customers," said Babu Mandava, General Manager of Centillium's Network Business Unit. "We were the first to develop a high density, feature-rich single-chip VoP solution. Once again, we are first to market with the highest density VoP chip with multiple protocol network processing capability."

Entropia VoP Chip
The highly integrated Entropia chip combines hardware, firmware and feature-rich software to deliver complete high density, low power packet voice capability in a single small form-factor device. The Entropia system-on-a-chip includes a Digital Signal Processor (DSP) and software for voice processing, including compression, echo cancellation, tone detection and generation, and signaling support. The network processor, which is also integrated on the chip, includes AAL1, AAL2, and RTP/UDP/IP processing. The chip comes with very advanced system level host Application Programming Interface (API) software and handles many compression algorithms, including G.711, G.726, G.728 and G.729. The chip also provides sophisticated jitter buffer control, thus enabling it to effectively handle ATM or IP network traffic by balancing cell delay variations and jitter.

About Centillium Communications
Centillium Communications, Inc. is combining technical innovation and customer commitment to make broadband communications a market reality. Centillium consistently delivers value to its customers by providing broadband networking systems for applications across all market segments. The company designs and markets communications chipset solutions for central office equipment, digital loop carrier (DLC) line cards, and customer premise equipment for Digital Subscriber Line (DSL), Voice over Packet (VoP) and Premise Networking. The Centillium Communications headquarters are located at 47211 Lakeview Blvd., Fremont, CA 94538. Additional information is available at www.centillium.com.

Forward Looking Statements
Except for historical information contained in this press release, the foregoing contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those indicated by such forward-looking statements based on a variety of risks and uncertainties, including the risks and uncertainties relating to actual quantities and timing of any orders received under the contract and the successful development and market acceptance of Centillium's new products. The company assumes no obligation to update these forward-looking statements to reflect events or circumstances after the date hereof. Information about potential factors that could affect Centillium's financial results is included in Centillium's most recent Annual Report on Form 10-K, which can be viewed at the Securities and Exchange Commission's website at www.sec.gov.

Centillium Communications and the Centillium logo are trademarks of Centillium Communications.