Centillium Communications, Inc.

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

CENTILLIUM COMMUNICATIONS AND MELCO TAKE DSL RETAIL IN JAPAN

Melco's Buffalo Modems Utilize Centillium's ADSL Annex C Technology

FREMONT, Calif., August 28, 2001 - Centillium Communications, Inc. [Nasdaq: CTLM], innovator of broadband communications technology, announces today its joint effort with Melco Inc. to supply ADSL customer premise equipment through retail channels in Japan. Centillium's Annex C technology enables Melco to provide Japan's consumers with connectivity to Asymmetric Digital Subscriber Lines (ADSL) broadband networks in Japan.

Melco, a main supplier to Japan's largest telecommunications service provider, is using Centillium's Universal Optimizer chipset in its Buffalo Universal Serial Bus (USB) modems. By utilizing Centillium's Universal Optimizer with the highest throughput performance and ease-of-use characteristics, Melco is able to provide its customers with reliable, high quality modems. Melco's Buffalo modem, which currently supports downstream rates of up to one and one half megabits per second (Mbps) and upstream rates of up to 512 kilobits per second (Kbps), is the most recognized modem brand in Japan and is widely sold in retail stores throughout the country.

Centillium is the industry-leading provider of DSL chipsets in Japan and holds a dominant market position. The Company worked with top-tier Japanese equipment manufacturers to pioneer patented DSL technology for the unique requirements of Japan's telecommunications networks. Centillium's ADSL modem chipsets offer the end user "plug and play" options and support full downstream rates of up to eight Mbps and upstream rates of up to one Mbps. Centillium's Annex C technology is the only proven solution meeting the special requirements for Japan, where Time Compression Multiplexing-Integrated Services Digital Network, (TCM-ISDN) is widely deployed.

"We are very excited to work with Centillium in bringing our Buffalo ADSL modems to the end-user market," stated Masaya Ishimaru the network products division marketing group leader for Melco. "Centillium's success and reliability in Japan's DSL market solidifies our decision to become partners in responding to the rapidly growing demand for DSL in Japan."

"The combination of our market-leading chipsets and Melco's Buffalo brand will be a very tempting offer for Japan's service providers. We feel this joint effort supports Centillium's and Melco's positions as the market-leaders in Japan," said Dori Braun, vice president of marketing for Centillium's Access Business Unit.

About Melco
Melco is a manufacturer of peripheral equipment for computers, which provides products and services under the brand name of "Buffalo." Melco has been steadily expanding its operations regarding memory, HDD, Internet related products, etc, and achieved the top position in the first section of the Tokyo Stock Exchange in 1996. Melco is now in the process of expanding its operations to a wide extent using its subsidiary companies both domestically and overseas.

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.