Centillium Communications, Inc.

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

CENTILLIUM COMMUNICATIONS AND CONSULTRONICS DELIVER PORTABLE TEST EQUIPMENT TO JAPAN

Centillium's Market-Leading Solutions Provide the Standard for ADSL in Portable Test Technology

FREMONT, Calif., August 27, 2001 - Centillium Communications, Inc. [NASDAQ: CTLM], innovator of broadband communications technology, today announces a partnership with Consultronics Ltd. in the delivery of portable test equipment to Japan. Consultronics, a manufacturer of telecom test and monitoring equipment for access technologies, is delivering production quantities of the CoLT-450J, a unique portable Asymmetric Digital Subscriber Line (ADSL) test set, to carriers in Japan.

Consultronics' CoLT-450J test set is based on Centillium's Annex C ADSL chipset, which was the first ADSL chipset to meet the specific technical requirements of the Japanese market. Existing near-end and far-end crosstalk noise (NEXT and FEXT) within Japan's cable bundles is unique due to the widely deployed "ping-pong" system used to deliver basic rate Integrated Services Digital Network (ISDN). Centillium's Annex C ADSL chipsets address these unique characteristics and make DSL feasible to deploy in networks in Japan.

"With Centillium's Annex C technology being the standard in Japan, it's products features and flexibility make it a perfect fit for equipment testing the lines for performance. Using Centillium's chipsets have helped us gain rapid success in laboratory and field evaluations with both providers and equipment makers," said Robert Fitts, executive vice president of Consultronics. "We are now shipping quantities of units to service providers in order to help rapidly increase roll outs of ADSL in Japan. The COLT-450J is the first test set in the world used by service providers in Japan."

Centillium is the industry-leading provider of DSL chipsets in Japan and holds a dominant market share. The Company worked with leading Japanese equipment manufacturers to pioneer patented DSL technology for the unique requirements of Japan's telecommunications networks. Centillium's Annex C chipsets support full downstream rates of up to eight megabits per second (Mbps) and upstream rates of up to one Mbps. Centillium's technology is the only proven solution that meets the special requirements for Japan, where Time Compression Multiplexing-ISDN, (TCM-ISDN) is widely deployed.

"Centillium is very excited to work with Consultronics in deploying ADSL to Japan's rapidly growing DSL market. The fact that Consultronics is using our Annex C ADSL technology as a benchmark for its CoLT-450J test set further solidifies Centillium as the market leader in Japan," stated Dori Braun, vice president of marketing for the Access Business Unit of Centillium.

This milestone reached by Consultronics further enhances the position of the company as one of the world's leaders in DSL deployment tools. Consultronics already supplies ADSL over Plain Old Telephone Service (POTS) Annex A test sets to most local exchange carriers and contractors around the globe. The company also supplies ADSL over ISDN in support of the European market (Annex B) and G.shdsl solutions for the rapidly developing symmetrical DSL market. Consultronics also offers portable test sets for troubleshooting metallic loops for DSL applications and rack mounted test heads for centralized loop qualification systems.

About Consultronics
Consultronics is a privately held corporation that designs and manufactures telecommunications test equipment and monitoring systems for global markets. The company has two research, development and manufacturing plants, located in Toronto, Canada and Southampton, England and a software development company in Budapest, Hungary. The ISO9001 registered company has sales offices in Stone Mountain, GA and sales representation in over 70 countries.

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 Annual Report on Form 10-K and most recent Quarterly Report on Form 10-Q, available for viewing on the Securities and Exchange Commission's website at www.sec.gov.

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