Ikanos Communications Extends Industry Leadership With the Purchase of Centillium's...

Ikanos Communications Extends Industry Leadership With the Purchase of
Centillium's DSL Technology and Assets
Webcast and Conference Call Scheduled for Today at 9:00 a.m. EST

FREMONT, Calif., Jan. 15 /PRNewswire-FirstCall/ -- Ikanos Communications,
Inc. (Nasdaq: IKAN), a leading developer and provider of Fiber Fast(TM)
broadband solutions, today announced that it has entered into a definitive
agreement to purchase DSL technology and assets from Centillium
Communications, Inc. for approximately $12 million in cash. As part of the
transaction, Ikanos will also assume certain related liabilities.
"We are very pleased to bring into Ikanos Centillium's DSL product lines,
the underlying intellectual property and the talented engineering team that
created these products," said Michael A. Ricci, Ikanos' president and CEO.
"Centillium's engineers have already developed technology that we expect to
help expand Ikanos' digital home solutions and accelerate the introduction of
next generation VDSL2 platforms. Their products, people and intellectual
property -- including nearly 60 patents and applications -- further enhance
Ikanos' leadership position and provide an expanded customer base in Europe
while fortifying Ikanos' leading position in Japan."
Pursuant to the agreement, Ikanos expects to hire a portion of
Centillium's engineers, including a highly-skilled analog and mixed signal
design team as well as acquire all of Centillium's DSL products, intellectual
property rights and several new customers. Ikanos expects to complete the
transaction, subject to the satisfaction of certain conditions, by the end of
February 2008, and anticipates that this transaction will be neutral to
slightly accretive to 2008 non-GAAP earnings.
Conference Call and Webcast Regarding Definitive Agreement at 9:00 a.m.
Eastern Standard Time
Management will hold a conference call today at 9:00 a.m. (Eastern
Standard Time) to discuss this transaction. To listen to the call, please
visit http://ir.ikanos.com/ and click on the link provided for the web cast or
dial (706) 902-1343 conference ID number 31292177. The web cast will be
archived and available through January 22, 2008 at http://ir.ikanos.com/ or by
calling (706) 645-9291 and entering conference ID number 31292177.
About Centillium Communications, Inc.
Centillium Communications, Inc. is a leading innovator of high
performance, cost-effective semiconductor solutions that give consumers,
enterprises and service providers the winning edge in broadband access. The
company's complete, end-to-end system-on-chip solutions accelerate development
time-to-market for "last mile" products with Digital Subscriber Line (DSL),
Fiber-To-The-Premises (FTTP) and Voice-over-Internet Protocol (VoIP)
technologies. Centillium products include digital and mixed-signal integrated
circuits and related software for DSL and FTTP central office and customer
premises equipment and VoIP solutions for carrier- and enterprise-class
gateways and consumer telephony. Centillium is a global company with
headquarters in Fremont, CA. Additional information is available at
http://www.centillium.com.
About Ikanos Communications Inc.
Ikanos Communications, Inc. (Nasdaq: IKAN) develops chipsets that enable
carriers to offer Fiber Fast(TM) bandwidth and Gigabit network processing for
enhanced triple play services. Ikanos' multi-mode VDSL2/ADSLx and network
processor solutions power access infrastructure and customer premises
equipment for many of the world's leading network equipment manufacturers.
Ikanos' solutions enable fast and cost-effective carrier rollouts of
interactive broadband services, including IPTV. For more information, visit
http://www.ikanos.com.
(C) 2008 Ikanos Communications, Inc. All Rights Reserved. Ikanos
Communications, Ikanos, the Ikanos logo, Ikanos Programmable Operating System,
CleverConnect, Eagle, Fiber Fast, Fusiv, Fx, FxS, LoopNostics, RRA, SmartLeap
and VLR are among the trademarks or registered trademarks of Ikanos.
Cautionary Statement
This press release contains forward-looking statements that involve risks
and uncertainties concerning the Company, including the parties' expectation
that the transaction will close by the end of February 2008, the future
performance of the assets being acquired, on-going customer relationships, and
Ikanos' employment of certain Centillium engineers as part of the transaction.
Actual results may differ materially from those described in this press
release due to a number of risks and uncertainties. These potential risks and
uncertainties include the satisfaction of all closing conditions set forth in
the definitive agreement, the ability of Ikanos to continue developing and
supporting the DSL products being acquired, market acceptance of Ikanos as the
vendor of products previously marketed and sold by Centillium, and the ability
to integrate new technologies and to retain the transferred employees. For a
further discussion of other related risks and uncertainties, which could cause
actual results to differ from those contained in the forward-looking
statements, please refer to our filings with the Securities and Exchange
Commission, including our Annual Report on Form 10-K and Quarterly Report on
Form 10-Q. One should not rely upon forward looking statements as predictions
of future events. We cannot assure that the events and circumstances reflected
in the forward-looking statement will be achieved or occur, nor do we
undertake any obligation to update any forward-looking statements for any
reason after the date of this press release.
SOURCE Ikanos Communications Inc.

investors, Bonnie Mott, +1-510-438-5360, bmott@ikanos.com, or media, Margo
Westfall, +1-510-438-6276, mwestfall@ikanos.com, both of Ikanos
Communications