Centillium Communications, Inc.

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

CENTILLIUM COMMUNICATIONS TO SUPPLY ADSL USB MODEMS TO EASTEL SYSTEMS, KOREA'S LARGEST DSL EQUIPMENT MANUFACTURER

EASTEL SYSTEMS Expands Offerings To Include ADSL USB Modems To

FREMONT, Calif., March 12, 2001 - Centillium Communications, Inc. (Nasdaq: CTLM), innovator of broadband communications technology, today announced a partnership with EASTEL SYSTEMS Corporation, a subsidiary of Dongwon Business Group (formerly Sungmi Telecom), to integrate Centillium's multi-mode ADSL USB chipset into EASTEL SYSTEMS' customer premise equipment (CPE). EASTEL SYSTEMS is currently one of the few telecom equipment manufacturers supplying DSL equipment to Korea's largest carrier, Korea Telecom. This partnership ensures that Korea will have access to the finest USB modem available and enables acceleration of high-speed Internet access service deployment in the country.

"EASTEL SYSTEMS has been aware of the need in Korea for additional technology options to stimulate the deployment of high-speed access for more than a year and we committed ourselves to being one of the first companies that will provide the solution," said Stephen Juh, vice president and head of the Customer Premise Equipment (CPE) Business Unit for EASTEL SYSTEMS. "We have been searching for the perfect partner for our new modem and Centillium's technology was chosen because of its superior performance and interoperability. Additionally, Centillium has shown that it is committed to product excellence and in working with EASTEL SYSTEMS they will ensure that Korean consumers will be satisfied with their modems."

EASTEL SYSTEMS chose Centillium's multi-mode Flite Optimizer™ USB chipset because of its minimal size, low power consumption and highly flexible architecture, which is superior to competing solutions. In addition to these key features, the Flite Optimizer is fully complaint with all USB industry standards, including USB v1.1, making the technology fully interoperable.

"EASTEL SYSTEMS is one of the largest telecommunication technology producers in the industry and we are pleased to have them as a partner in providing high-speed Internet access to a new and growing market," said Dori Braun, vice president of marketing, access business unit for Centillium Communications. "EASTEL SYSTEMS shares common goals of providing superior technologies to the consumers and endeavoring to create new technologies to accelerate market competition. Centillium is honored to be in this partnership and will work faithfully with EASTEL SYSTEMS to continue our joint traditions of excellence."

In August of 2000, Centillium's USB chipset won the acclaim of the industry renowned testing lab, National Standards Testing Lab (NSTL), which is a division of CMP Media. In a test of modems incorporating USB chipsets from several industry leaders, modems utilizing Centillium's Flite Optimizer outperformed their competition. Modems based on Centillium's USB chipset provided the highest data throughput rates in the industry.

About EASTEL SYSTEMS Corporation
EASTEL SYSTEMS, founded in 1980, is one of the most specialized fiber optical transmission equipment manufacturers in Korea. EASTEL SYSTEMS developed the nations first 155Mbps and 622Mbps fiber optic transmission equipment and 155Mbps fiber optical access equipment (FLC).

EASTEL SYSTEMS has been recognized as the best fiber optic transmission equipment manufacturer in Korea supplying a variety of fiber optical products to major telecommunications service providers such as Korea Telecom, Korea Telecom Freetel, HANARO Corp., Dacom Corp., Korea Highway Corp. and the MND (Ministry of National Defense).

Additional information is available at www.eastelsystems.com/Product Interest. +82-31-467-7134

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 Quarterly Report on Form 10-Q, 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.