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

CENTILLIUM COMMUNICATIONS TO ACQUIRE VENGINES, A LEADING DEVELOPER OF VOICE-OVER-PACKET SINGLE CHIP SOLUTIONS

Combination of vEngines' vIPER and Centillium's ACE Architectures Increases Centillium's Lead in the Voice-Data Convergence Market

FREMONT, Calif., October 5, 2000 - Centillium Communications, Inc. (Nasdaq: CTLM) today announced the acquisition of privately held vEngines, Inc. for total consideration of approximately $43 million of newly issued Centillium common stock and stock options. The transaction will be accounted for as a purchase and is expected to close in December 2000.

vEngines develops high-density voice processing semiconductor products which bridge circuit switched voice and data networks. This leading technology compresses voice traffic, converting it into digital packets, which can then travel on data networks. vEngines' targeted customer base includes communications equipment manufacturers that provide carrier and access voice gateways and remote access servers.

With this acquisition, Centillium strengthens its position as the market leader in supporting true convergence of circuit switched voice networks with Asymmetric Transfer Mode (ATM), Internet Protocol (IP) and Frame Relay networks. Centillium's Entropia products enable any network to interwork with any network, so that service providers can utilize existing data networks for voice traffic with no interruption in service or reduction in quality to the end user.

In addition to the support for true convergence, Centillium's Entropia product supports 256 channels of voice processing as well as multiplayer processing for ATM, IP and Frame Relay all in the same device. As a result, service providers can transmit high volumes of revenue generating voice traffic on the more efficient and cost effective data networks, with no degradation in quality of service.

"The acquisition of vEngines further extends Centillium's leadership in the Voice-Over-Packet integrated circuit market," said Faraj Aalaei, CEO of Centillium Communications. "By delivering the Entropia chip, Centillium has already established itself as the market leader with the most integrated, highest density solution. The acquisition of vEngines will accelerate the introduction of our next generation products that will allow us to sustain our market lead."

"The combination of vEngines' vIPER architecture with Centillium's ACE (Asynchronous Computing Engine) architecture in the Entropia Voice-Over-Packet product line will substantially enhance Centillium's industry-leading solutions for the high-growth voice-data convergence market," said Basant Khaitan, CEO and co-founder of vEngines. "vEngines' highly experienced engineering teams in the U.S. and India will serve as a base for further expansion of Centillium Communications' integrated circuit and associated software design efforts."

About vEngines, Inc.
Basant Khaitan and Shankar Narayan founded vEngines, Inc. to develop leading edge voice processing integrated circuits for emerging Voice-Over-Packet networks. The Company has developed the vIPER architecture that offers an unmatched level of integration and port density. vEngines, which currently employs 28 professionals, has development operations in Santa Clara, California and Bangalore, India. ICICI Ventures, INC3Ventures and several prominent Silicon Valley entrepreneurs funded the Company.

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.

Copyright 2003 Centillium Communications, Inc. All rights reserved. All other products or service names mentioned herein are the property of their respective owners.