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Exhibit 99.1
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VIRATA COMPLETES ACQUISITION OF EXCESS BANDWIDTH CORPORATION TO BECOME THE ONLY
COMPANY OFFERING COMPLETE SOLUTIONS FOR BOTH ASYMMETRIC AND SYMMETRIC DSL
Virata Gains Access to Excess Bandwidth's DSL Technologies for SDSL, HDSL2 and
G.shdsl Products
SANTA CLARA, Calif., August 23, 2000 - Virata Corporation (Nasdaq: VRTA) today
announced that it completed its acquisition of Excess Bandwidth Corp., a leading
developer of advanced algorithms and mixed-signal semiconductors for high-
bandwidth symmetric DSL applications, on August 22. Under the terms of the
merger agreement, Virata will issue approximately 6.3 million shares of its
common stock to acquire all of the outstanding shares and options of Excess
Bandwidth.
"With the acquisition of Excess Bandwidth, Virata is well positioned to provide
a complete range of major building blocks for manufacturers targeting customer
premises or central office DSL equipment," said Virata Chief Executive Officer
Charles Cotton. "With a growing arsenal of DSL solutions - including
communication processors, voice processors, integrated communication and network
management software, ADSL and symmetric DSL physical layer solutions - Virata is
able to offer its customers the most advanced technology available to support
their needs in the rapidly evolving DSL industry."
Effective immediately, Virata intends to expand operations at Excess Bandwidth's
Cupertino, CA facility to speed the delivery of symmetric DSL solutions.
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" (ISOS) product
solutions enable customers to develop a diverse range of broadband wireless and
DSL equipment including modems, gateways, routers, line cards 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 official ATM Forum, Bluetooth SIG
organization, the DSL Forum, HomePNA, ITU, MPLS Forum, OpenDSL Alliance and UPnP
Forum. A publicly traded company on the Nasdaq Stock Market, Virata was founded
in 1993 and is headquartered in Santa Clara, California.
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Virata is a registered trademark of Virata Corporation. 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 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.
Media Contacts:
Kelly Morris
Virata
408-566-1026
[email protected]
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Desiree Russell
Virata
919-790-9189, ext. 3336
[email protected]
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