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Philips Semiconductors and Flarion Technologies Collaborate to Develop ASICs That Will Enable Mobile Connectivity For Users At Speeds Of Up To 3Mbps

SUNNYVALE, Calif. & BEDMINSTER, N.J.--(BUSINESS WIRE)--Nov. 19, 2001--


True low-cost mobile broadband devices will be industry's first for

the mass market

Philips Semiconductors, a division of Royal Philips Electronics (NYSE:PHG, AEX:PHI), will design and manufacture Application-Specific Integrated Circuits (ASICs) that support mobile data rates of up to 3Mbps to devices supporting Flarion's innovative flash-OFDM(TM) mobile communications system.

Laptop computers, PDAs, and smart telephones incorporating these low-power ASICs will bring true broadband mobile services to mass-market users, at prices comparable to those of today's standard cable modem Internet connections. The ASICs, which handle transmit-signal and receive-signal processing, will be available in early 2002, with availability of flash-OFDM mobile PC cards in the fourth quarter of 2002.

The ASICs will help drive down power requirements, size, and cost for end-user devices supporting Flarion's flash-OFDM mobile communications, the first end-to-end IP (Internet Protocol) solution for mobile data and voice communications. The flash-OFDM technology, which originated in Bell Labs, enables mobile users to achieve the same broadband experience they already enjoy in business or at home, even in moving vehicles, and at communication speeds surpassing those of wired broadband services such as DSL or cable modems. Flarion's flash-OFDM technology allows the full Internet content to be accessed from mobile devices without requiring any changes to the IP protocol, applications, devices, or content. The user experience remains unchanged.

"The flash-OFDM technology has the potential to unwire devices and offer all-packet connectivity to the Internet, unlike circuit-switched technologies," said Phil Marshall, Senior Wireless Analyst with the Yankee Group. "Low cost, high-speed chipsets that support a wide range of devices will help foster the demand for mobile data services and create economies of scale."

"Philips Semiconductors is an acknowledged leader in semiconductors for mobile communications," said Ray Dolan, president and CEO of Flarion. "Its leadership position and its mobile and wireless market experience, combined with Flarion's flash-OFDM technology, will enable us to meet time-to-market objectives for national mobile operators."

"With rates of up to 3Mbps and extremely low latency, Flarion's flash-OFDM technology is very promising for a wide range of data applications that mobile users are demanding," said Peter Baumgartner, Vice President, Worldwide Communications Segment, Philips Semiconductors. "We're pleased to collaborate with Flarion and to help bring this exciting technology to the mass market."

About Philips Semiconductors

Philips Semiconductors, with revenues of US $6.3 billion in 2000, is a world leader in silicon systems and standard products for wireless communications, digital entertainment, computing and automotive applications. The organization designs, develops and manufactures silicon solutions based on its innovative Nexperia(TM) architecture to create living technology for its customers creating products, service providers using the products, and consumers enjoying the resulting products and services. For more information: www.semiconductors.philips.com

About Flarion Technologies

Flarion Technologies is mobilizing the Internet with its innovative mobile communications network technology, flash-OFDM(TM). This technology will make seamless mobile broadband access to the Internet truly affordable to the mass market - anytime, anywhere. Flarion's flash-OFDM technology, which originated in Bell Labs, enables mobile operators to profitably offer Internet Protocol (IP)-based broadband services. For mobile operators, Flarion's technology is the lowest subscriber cost of installation and operation of any mobile broadband service in the world.

Flarion's RadioRouter(TM) base station product easily overlays onto a mobile operator's existing cell sites and spectrum, and will provide a seamless routing interface to the operator's existing IP network. Flarion's flash-OFDM-based devices allow mobile users to have the same user experience they have on a broadband-wired connection.

Flarion Technologies is based in Bedminster, New Jersey (USA) and now employs over 135 people. Investors include Bessemer Venture Partners, Charles River Ventures, Cisco Systems, Equitek Capital, Lucent Technologies' New Ventures Group, Nassau Capital, and Pequot Capital. More information about Flarion can be accessed at http://www.flarion.com

Flash-OFDM is a trademark of Flarion Technologies. Other trademarks and registered trademarks referenced herein remain the property of their respective owners.


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