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CENTILLIUM SETS NEW BENCHMARK WITH 50 MBPS ADSL2/2plus ROUTER-ON-CHIP

Palladia™ 220 Chipset Enables Premium Broadband and Multiservice Bundling With Unprecedented Reach

FREMONT, Calif., June 23, 2003 - Centillium Communications Inc. (Nasdaq: CTLM), innovator of broadband technology, announces the Palladia 220, an ADSL 2/ADSL2plus-compatible chipset for Customer Premises Equipment (CPE) that delivers data rates up to 50 megabits per second (Mbps), extends the reach of ADSL up to 22,000 feet and supports a full suite of connectivity options including high-speed Wi-Fi.

With the highest ADSL data rates in the industry, the Palladia 220 can support delivery of premium services such as High-Definition Television (HDTV), Video-On-Demand (VOD), high-speed Internet applications and quality Voice-over-Internet Protocol (VoIP) telephony at a fraction of the cost of alternative technologies. This enables service providers to increase their average revenue per user while maintaining the deployed ADSL access infrastructure.

The Palladia 220 also extends the reach of ADSL service up to 22,000 feet from the central office, increasing the ADSL coverage area up to 45 percent. Service providers can now reach additional subscribers while minimizing infrastructure deployment and associated capital expenditures. The increase in coverage is particularly beneficial for ADSL2plus-type services, where Palladia 220 offers unsurpassed reach performance. This allows service providers to cost-effectively roll out new premium services, ultimately improving their bottom-line.

The Palladia 220 delivers a complete router-on-a-chip solution. It is the first CPE chipset integrating Centillium’s eXtremeDSLMAX™ technology, offering up to 50 Mbps and ADSL2/2plus compatibility. With a powerful 200MHz RISC processor and hardware accelerators for packet processing, a high-speed PCI/Cardbus interface, 10/100 Ethernet, USB and a number of serial interfaces, it offers outstanding processing performance and connectivity for residential and SOHO routers. For example, the Palladia 220 is the first chipset to enable system manufacturers to combine a 54 Mbps 802.11a/g WLAN connection with 50 Mbps ADSL broadband access and wire-speed system throughput.

“The new ADSL2/2plus standard provides a number of improvements, that will benefit both service providers and consumers, and the Palladia 220 allows us to meet our aggressive time-to-market requirements for CPE solutions that comply with these new standards,” said Ken Lu, Co-founder and Senior VP of Accton. “At the same time, the performance and connectivity features of Palladia 220 provide us the capabilities we need to deliver the home networking functionality that our worldwide markets demand.”

“The Palladia 220 retains Centillium’s crown for delivering the industry’s highest-performance CPE chipsets,” said Tony Shakib, General Manager of the Access and Networking Business Units for Centillium Communications. “It establishes a new benchmark by exceeding industry-standard data rates and providing the most advanced solution in the market for ADSL routers aimed at next-generation broadband and home networking services.”

The Palladia 220 includes a newly designed analog front-end to accommodate the extended spectrum operation enabled by the eXtremeDSLMAX technology. It also features high-resolution analog-to-digital and digital-to-analog converters and an exceptionally low-noise floor, which result in the Palladia 220’s industry-leading performance of up to 50 Mbps.

The Palladia 220 complements Centillium’s recently announced Maximus™ central office chipset – the first silicon implementation of Centillium’s eXtremeDSLMAX technology. Palladia 220 and Maximus deliver a unique end-to-end solution for next-generation ADSL access networks, allowing system manufacturers to differentiate their products. The Palladia 220 also offers full interoperability and backward compatibility with current ADSL standards and deployments to protect service providers’ existing DSL infrastructure investments.

About eXtremeDSLMAX Technology
Centillium’s eXtremeDSLMAX technology is a revolutionary feature set that optimizes the use of the ADSL spectrum to make significant improvements in the downstream and upstream bit rates and, extends the reach of ADSL service while maintaining backward compatibility with ADSL, ADSL2, and ADSL2plus standards.

eXtremeDSLMAX consists of several key features. eXtremeDSLMAX Quad-Spectrum (MAX-QS) and eXtremeDSLMAX Double-Spectrum (MAX-DS) offer increased downstream rates that go beyond the traditional 8 Mbps up to 50 Mbps and 24 Mbps, respectively, without introducing any adverse impact to existing services. The eXtremeDSLMAX Long-Reach (MAX-LR) feature allows service providers to increase their ADSL coverage up to 22,000 feet (7,000 meters). The eXtremeDSLMAX Extended-Upstream (MAX-EU) feature increases upstream rates up to 3 Mbps. The eXtremeDSLMAX High Bit-Loading (MAX-HBL) feature allows more than 15 bits to be loaded per ADSL DMT subcarrier.

The Palladia 220 unleashes Centillium’s eXtremeDSLMAX technology into Customer Premises Equipment for the first time. For more technical background on breakthrough technological innovations such as MAX-QS, MAX-LR, and the other eXtremeDSLMAX features, please visit the company’s Web site at www.centillium.com.

About Centillium Communications
Centillium Communications, Inc. combines technical innovation and customer commitment to make broadband communications - in business and at home - a practical reality. The company designs and markets communications chipsets for Digital Subscriber Line (DSL) central office and customer premises equipment and for carrier- and enterprise-class Voice over Packet (VoP) gateways and switches. The Centillium Communications headquarters are located at 47211 Lakeview Blvd., Fremont, CA 94538. Additional information is available at www.centillium.com.

Centillium, Centillium’s logo, Maximus, eXtremeDSLMAX and Palladia are trademarks of Centillium Communications, Inc. in the U.S. and certain other countries. All other trademarks mentioned in this document are the property of their respective owners.

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.

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