CopperGate Communications Buys HomePlug AV Powerline Technology from Conexant Systems,...

CopperGate Communications Buys HomePlug AV Powerline Technology from Conexant Systems, Inc.

Leads way towards next home networking standard, G.hn
TEL AVIV, Israel & NEWARK, Calif.--(Business Wire)--
CopperGate Communications, the Everywire Home Networking
Company(TM), today announced the purchase of the HomePlug AV business
from Conexant Systems, Inc. (NASDAQ:CNXT). CopperGate is now the first
semiconductor company with home networking technologies supporting all
three wire types - coax, phone and power lines.

CopperGate acquired the HomePlug AV business from Conexant
including all relevant power line technology and silicon products,
related patents, appropriate licenses, and requisite personnel. Former
Conexant employees will become part of the CopperGate team and will
expand the company's R&D initiatives in Southern California. The terms
of the deal were not disclosed.

CopperGate is already the leading provider of HomePNA compliant
chipsets, the dominant coax and phone wire standard for IPTV
installations and the company remains strongly committed to the
HomePNA standard.

"Adding power line technology to our HomePNA coax and phone line
technology opens up many new markets globally and better prepares the
company for the exciting new ITU home networking standard, G.hn," said
Gabi Hilevitz, Chief Executive Officer of CopperGate. "We are not
limited to a single wire, a single technology standard or a single way
of thinking. Now, service providers globally will receive greater
choice, flexibility, capability and value from one leader -
CopperGate."

G.hn is the working group name for the next generation global home
networking standard being created within the ITU-T. With G.hn, coax,
phone wires and power lines will all be supported by a single
standard. Today, there are twenty-five active global members of G.hn
including AT&T, Verizon, France Telecom, Intel and TI and the group
recently began meeting monthly due to strong interest and increased
contributions. The G.hn foundation specification is expected by the
end of 2008.

"It's very important that power line technology is now being
included in international standards bodies like the ITU and IEEE,
helping to promote a common power line networking approach worldwide,"
said Jaime Fink, Vice President of Technology and Strategy, 2Wire,
Inc. "CopperGate's acquisition of power line technology should help
accelerate delivery of the 3-wire capable G.hn standard that carriers
want."

"For a number of years, it has been In-Stat's position that
service operators desire to use multiple existing-wire mediums to
offer them flexibility and cost-effectiveness for video distribution
deployments. The capability to use two mediums (a pair) is an
advantage compared to one medium, and three mediums 'beats a pair,'"
observed Joyce Putscher, Principal Analyst at market research firm
In-Stat.

"We at iSuppli are very bullish on G.hn. It makes a lot of sense
for the market and with the Conexant acquisition, CopperGate appears
to now have all the pieces necessary to become an early leader with
compliant products in the market," added Steve Rago, Principal Analyst
at the market analyst firm iSuppli. "It's pretty significant news."

About CopperGate

CopperGate Communications, the Everywire Home Networking
Company(TM) develops high performance chipsets for broadband access
and networking for high fidelity home entertainment applications such
as HD-enabled IPTV, multi-room DVRs, and video on demand (VOD). As a
leader in multi-wire home networking, only CopperGate is capable to
offer both HomePNA and HomePlug technology for use in individual homes
and multi-dwelling and multi-tenant units (MDU/MTU) worldwide.
CopperGate chipsets have been deployed by leading triple-play service
providers representing nearly 100 million lines and have already
connected over 15,000 miles of coax. Founded in 2000, CopperGate is
headquartered in Tel Aviv, Israel with offices in the United States,
Taiwan, Korea, China and Japan.

For more information, please visit www.copper-gate.com.

Reader Contact Information

North America:

CopperGate Communications, 39899 Balentine Drive, Suite 355,
Newark, CA 94560

Tel: 510-656-8500, info@copper-gate.com.

Europe and Asia:

CopperGate Communications, 34 Habarzel St., 69710 Tel Aviv, Israel

Tel: +972 3-644-4488, info@copper-gate.com.

Everywire Home Networking Company is a trademark of CopperGate
Communications in the U.S.A. and other countries. All other trademarks
mentioned herein are believed to be trademarks of their respective
owners.

CopperGate Communications
Rich Nesin, 610-395-1686
VP of Marketing
rich_n@copper-gate.com
or
PR Agency Contact:
Bage Anderson, 254-772-5909
bage@weinkrantz.com

Copyright Business Wire 2008