Broadcom Recognized as the Fastest Growing Enterprise IP Phone Chip Supplier, According to IDC

IRVINE, Calif., Aug 16, 2005 /PRNewswire-FirstCall via COMTEX/ -- Broadcom Corporation (Nasdaq: BRCM), a global leader in wired and wireless broadband communications semiconductors, today announced that upcoming market data from IDC show that Broadcom is the fastest growing enterprise IP phone chip supplier.

According to IDC's "Worldwide VoIP Semiconductor 2004 Vendor Market Shares," Broadcom captured 38 percent of the IP phone chip market and was the only company that gained market share in 2004. The dramatic growth and significant increase in market share is attributable to the ramp of Broadcom's design wins and the production availability of enterprise IP phones from nearly every leading enterprise IP phone manufacturer.

"Broadcom's field-proven chipsets, technical expertise and high quality VoIP software suite helped Avaya bring high performance and cost-effective phones to market quickly and efficiently," said Geoffrey Baird, Vice President and General Manager of Avaya's Communications Appliances Division. "Avaya works with Broadcom to optimize their chipsets' software to deliver enhanced value and features in Avaya appliances. This helps us achieve our goal of delivering user-friendly IP phones that make employees more productive, processes more intelligent and customers more satisfied."

"Next generation, cost-optimized, single-chip solutions with high-performance processing features, integrated Ethernet capabilities and hardware-based security will become increasingly adopted in Ethernet IP phone designs," said Allen Leibovitch, Manager of semiconductor research for IDC. "Broadcom's IP phone product lineup, including its most-recent Gigabit Ethernet (GbE) VoIP chip, should continue the company's momentum in this growing market segment in 2005."

"Broadcom supplies IP phone solutions to six of the top eight enterprise IP phone manufacturers," said Patrick Sullivan, Vice President and General Manager of Broadcom's VoIP phone products. "We have shipped more than three million units since the launch of our Ethernet IP phone chip about two years ago. The recently launched Broadcom® GbE IP phone chip, combined with our industry leadership in physical layer (PHY) technology, proven security and best-in-class voice quality, continues to set us apart from our competition. Thereby further strengthening our position while enabling customers to develop cost-effective, feature-rich GbE phones that can take advantage of higher bandwidth and improved performance."

In January 2004, Broadcom announced the industry's first Gigabit Ethernet IP phone chip. The Broadcom BCM1103 is currently the only GbE IP phone solution available today that incorporates GbE switching, end-to-end security, advanced quality of service (QoS) techniques and increased processing performance in a single-chip design. This highly integrated IP phone chip features new Ethernet switching capabilities that enable deployed IP phones to achieve maximum throughput over GbE networks. Gigabit Ethernet technology is now becoming widely deployed in enterprise networks to support the increased bandwidth requirements of converged voice, video and data communications.

Leadership in Voice IP Silicon

The Broadcom BCM1101 and BCM1103 families of highly integrated Fast Ethernet and Gigabit Ethernet IP phone chips enable manufacturers to bring to market a range of enterprise IP phone solutions with varying features and cost points. Broadcom's IP phone chips are the most advanced solutions in the industry, offering a range of high-end, mid-range, and basic voice and data capabilities. These chips, coupled with Broadcom's proven PHY and BroadSAFE™ security technology and its BroadVoice® advanced compression techniques, are enabling manufacturers to deliver economical solutions for migrating businesses to complete IP telephony systems. Broadcom's VoIP solutions are shipping in volume production today to leading manufacturers worldwide for deployment within enterprise IP phones, Wi-Fi® phones, residential terminal adapters, voice-enabled cable and DSL residential gateways.

About Broadcom

Broadcom Corporation is a global leader in wired and wireless broadband communications semiconductors. Our products enable the convergence of high- speed data, high definition video, voice and audio at home, in the office and on the go. Broadcom provides manufacturers of computing and networking equipment, digital entertainment and broadband access products, and mobile devices with the industry's broadest portfolio of state-of-the-art system-on- a-chip and software solutions. These solutions support our core mission: Connecting everything®.

Broadcom is one of the world's largest fabless semiconductor companies, with annual revenue of more than $2 billion. The company is headquartered in Irvine, Calif., with offices and research facilities in North America, Asia and Europe. Broadcom may be contacted at 1-949-450-8700 or at www.broadcom.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:

All statements included or incorporated by reference in this release, other than statements or characterizations of historical fact, are forward-looking statements. These forward-looking statements are based on our current expectations, estimates and projections about our industry and business, management's beliefs, and certain assumptions made by us, all of which are subject to change. Forward-looking statements can often be identified by words such as "anticipates," "expects," "intends," "plans," "predicts," "believes," "seeks," "estimates," "may," "will," "should," "would," "could," "potential," "continue," "ongoing," similar expressions, and variations or negatives of these words. These forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause our actual results to differ materially and adversely from those expressed in any forward-looking statement.

Important factors that may cause such a difference for Broadcom in connection with VoIP products include, but are not limited to, general economic and political conditions and specific conditions in the markets we address, including the volatility in the technology sector and semiconductor industry, trends in the broadband communications markets in various geographic regions, and possible disruption in commercial activities related to terrorist activity or armed conflict in the United States and other locations; the rate at which our present and future customers and end-users adopt Broadcom's technologies and products in the markets for VoIP networking applications; delays in the adoption and acceptance of industry standards in those markets; our ability to scale our operations in response to changes in demand for our existing products and services or demand for new products requested by our customers; intellectual property disputes and customer indemnification claims and other types of litigation risk; our ability to specify, develop or acquire, complete, introduce, market and transition to volume production new products and technologies in a cost-effective and timely manner; the timing, rescheduling or cancellation of significant customer orders and our ability, as well as the ability of our customers, to manage inventory; the gain or loss of a key customer, design win or order; the availability and pricing of third party semiconductor foundry and assembly capacity and raw materials; our ability to timely and accurately predict market requirements and evolving industry standards and to identify opportunities in new markets; the quality of our products and any remediation costs; competitive pressures and other factors such as the qualification, availability and pricing of competing products and technologies and the resulting effects on sales and pricing of our products; our ability to retain, recruit and hire key executives, technical personnel and other employees in the positions and numbers, with the experience and capabilities, and at the compensation levels needed to implement our business and product plans; problems or delays that we may face in shifting our products to smaller geometry process technologies and in achieving higher levels of design integration; the timing of customer-industry qualification and certification of our products and the risks of non-qualification or non-certification; changes in our product or customer mix; the volume of our product sales and pricing concessions on volume sales; fluctuations in the manufacturing yields of our third party semiconductor foundries and other problems or delays in the fabrication, assembly, testing or delivery of our products; the risks of producing products with new suppliers and at new fabrication and assembly facilities; the effectiveness of our expense and product cost control and reduction efforts; the risks and uncertainties associated with our international operations, particularly in light of recent events; the effects of natural disasters, public health emergencies, international conflicts and other events beyond our control; the level of orders received that can be shipped in a fiscal quarter; and other factors.

Our Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K, and other Securities and Exchange Commission filings discuss the foregoing risks as well as other important risk factors that could contribute to such differences or otherwise affect our business, results of operations and financial condition. The forward-looking statements in this release speak only as of this date. We undertake no obligation to revise or update publicly any forward-looking statement for any reason.

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Broadcom Trade Press Contact
Jeremy Hyatt
Sr. Marketing Communications Specialist
949-926-5971
jhyatt@broadcom.com

Broadcom Investor Relations Contact
T. Peter Andrew
Sr. Director, Investor Relations
949-926-5663
andrewtp@broadcom.com

Broadcom Technical Contact
Bill Boora
Product Marketing Manager
604-233-8642
bboora@broadcom.com

SOURCE Broadcom Corporation

Trade Press, Jeremy Hyatt, Sr. Marketing Communications Specialist, +1-949-926-5971, jhyatt@broadcom.com, or Investors, T. Peter Andrew, Sr. Director, Investor Relations, +1-949-926-5663, andrewtp@broadcom.com, or Technical, Bill Boora, Product Marketing Manager, +1-604-233-8642, bboora@broadcom.com, all of Broadcom Corporation