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EXHIBIT 99.1
FOR IMMEDIATE RELEASE
At Virata Corporation At The Financial Relations Board
Kelly Morris Marcia Nakamura (general)
Director of Public Relations Susan Katz (analysts/investors)
(408) 566-1000 Chris Wood (media)
(415) 986-1591
VIRATA TO ACQUIRE AGRANAT SYSTEMS FOR ITS KEY WEB TECHNOLOGIES AND NETWORK
MANAGEMENT SOFTWARE
Agranat Software will Enable Virata to be First-to-Market with Universal
Plug and Play, and Will Drive Usability and Ease-of Use to DSL and Home
Networking Customers
SANTA CLARA, Calif., Ju1y 25, 2000 - Virata Corporation (Nasdaq: VRTA) today
announced it has entered into a definitive agreement to acquire privately-held
Agranat Systems, Inc. in exchange for approximately 492,000 shares of Virata
common stock, including assumed options. The acquisition is expected to provide
Virata with Agranat's leading-edge web technologies and networking management
software, which has previously been selected by industry leaders such as
Alcatel, 3COM Corporation, Cabletron, Hewlett-Packard, Efficient Networks,
Lucent, Nortel and Siemens. The transaction is expected to close in the third
calendar quarter 2000.
"Agranat provides Virata with extensive capabilities in web technologies
and network management techniques, which will not only enhance our current
broadband access products but enable us to deliver solutions for new markets
such as the growing Internet appliance and home networking arenas," said Charles
Cotton, chief executive officer of Virata Corporation. "By integrating Agranat
software into our growing arsenal of DSL product offerings we can deliver a
complete solution that makes technologies such as DSL and broadband wireless
significantly easier to deploy and maintain; and provides increased
functionality and ease-of-use to the end-user. We believe this will drive mass-
market acceptance of DSL as it lowers the maintenance
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Virata to Acquire Agranat Systems 2-2-2-2
and operation costs incurred by the service provider and delivers an 'out of the
box' solution to the end-user that is easy to install, reconfigure and
maintain."
Commenting on the acquisition, Ian Agranat, chief executive officer of
Agranat, said "We are very excited by the acquisition and believe the
combination of our two companies will bring significant benefits to both Virata
and Agranat customers. With our combined resources, we will be able to
immediately add value to Virata's existing broadband solutions and also
accelerate our internal technology roadmap for delivering next generation
systems management solutions including features and options such as Universal
Plug and Play (UPnP) and XML."
In order to support Agranat's existing customer base and to facilitate the
delivery of software-only solutions to current and future customers, it is
planned that Agranat will continue to operate as a separate business unit out of
its Maynard, Mass. office. It is also expected that the new Virata business unit
will be managed by Ian Agranat and will continue offering software-only
solutions such as the EmWeb product family. Added Cotton, "With the addition of
Agranat software to Virata's current DSL semiconductors and software, we intend
to be first-to-market with a suite of next generation system management
solutions including Universal Plug and Play (UPnP) implementations. We believe
this will deliver significant competitive advantages to our customers."
About Agranat Systems
Agranat Systems, Inc. is the leading provider of embedded Web management
solutions. Through the EmWeb family, Agranat delivers the software technology,
development tools, and design support enabling developers to create web-managed
products. End users of these products can remotely access, configure, and manage
devices or applications via the Internet using a standard web browser interface.
EmWeb/Server is a highly efficient, fully scalable embedded HTTP software server
providing guaranteed interoperability, security, and compliance to the latest
web standards. Additional products include EmWeb/Client, EmWeb/CLI, GUIkit, and
EmStack, as well as integration packages for SNMP and SSL. Agranat is a member
of the World Wide Web Consortium (W3C), UPnP Forum and actively participates in
the development and contribution of Web standards to the Internet Engineering
Task Force (IETF). For more information, visit http://www.agranat.com.
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Virata to Acquire Agranat Systems 3-3-3-3
About Virata
Virata Corporation provides communications processors combined with
integrated software modules to manufacturers of equipment utilizing digital
subscriber line (DSL) technologies. These "integrated software on silicon"
product solutions enable customers to develop a diverse range of broadband
wireless and DSL equipment including modems, gateways, routers, and integrated
access devices targeted at the voice and high-speed data network access market.
Virata's products are designed to enable DSL equipment manufacturers to simplify
product development, reduce the time it takes for products to reach the market
and focus resources on product differentiation and improvement.
Virata is a principal member of the ATM Forum, DSL Forum, MPLS Forum, UPnP
Forum, HomePNA, ITU and the official Bluetooth SIG organization. A publicly
traded company on the Nasdaq stock market, Virata was founded in 1993 and is
headquartered in Santa Clara, California.
Virata is a registered trademark of Virata Corporation. Agranat Systems and
EmWeb are registered trademarks of Agranat Systems. All other trade, product,
or service names referenced in this release may be trademarks or registered
trademarks of their respective holders.
Except for historical information contained herein, this press release contains
forward-looking statements that involve risks and uncertainties. Actual results
may differ materially. Factors that might cause a difference include, but are
not limited to, those relating to evolving industry standards, the pace of
development and market acceptance of Virata's products and the DSL market
generally, commercialization and technological delays or difficulties, the
impact of competitive products and technologies, competitive pricing pressures,
manufacturing risks, the possibility of our products infringing patents and
other intellectual property of third parties, product defects, costs of product
development, the company's ability to complete the acquisition in the time
period outlined, or at all, and extract value from the acquisition, and
manufacturing and government regulation. Virata will not update these forward-
looking statements to reflect events or circumstances after the date hereof.
More detailed information about potential factors that could affect Virata's
financial results is included in the documents Virata files from time to time
with the Securities and Exchange Commission.
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