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Exhibit 99.1
Press Contact: Investor Contact:
Laurie Falconer John Luhtala
Director, Marketing Communications Chief Financial Officer
Centillium Communications Centillium Communications
(510) 771-3647 (510) 771-3410
[email protected] [email protected]
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CENTILLIUM COMMUNICATIONS COMPLETES ACQUISITION OF VENGINES, A LEADING DEVELOPER
OF VOICE-OVER-PACKET SINGLE CHIP SOLUTIONS
Centillium Strengthens Lead in the Voice-Data Convergence Market
FREMONT, Calif., January 8, 2001 - Centillium Communications, Inc. (Nasdaq:
CTLM), innovator of broadband communications technology, today announced that it
has completed the acquisition of vEngines, Inc.
vEngines develops high-density voice processing semiconductor products which
bridge circuit switched voice and packet-based data networks. This leading
technology compresses voice traffic, converting it into digital packets, which
can then travel on data networks. vEngines' targeted customer base includes
communications equipment manufacturers that provide carrier and access voice
gateways and remote access servers.
In connection with the acquisition, Centillium issued an aggregate of 813,915
shares of its Common Stock in exchange for all outstanding shares of vEngines
Preferred and Common Stock and reserved 59,344 additional shares of Common Stock
for issuance upon exercise of outstanding vEngines employee stock options. The
share issuances were exempt from registration pursuant to section 3(a)(10) of
the Securities Act of 1933, as amended. Approximately 36% of the shares issued
will be held in escrow or restricted from resale pursuant to the terms of the
acquisition agreement as well as various employee share repurchase agreements.
The merger transaction will be accounted for under the purchase method of
accounting. Centillium expects to record a one-time charge for purchased in-
process research and development expenses related to the acquisition in its
first fiscal quarter, ending March 31, 2001.
About Centillium Communications
Centillium Communications, Inc. is combining technical innovation and customer
commitment to make broadband communications a mass-market reality. Centillium
consistently delivers value to its customers by providing broadband networking
systems for applications across all market segments. The company designs and
markets communications chipset solutions for central office equipment, DLC line
cards, and customer premise equipment for Digital Subscriber Line (DSL), home
networking and Voice-Over-Packet. Centillium Communications, Inc. is located at
47211 Lakeview Blvd., Fremont, CA 94538. Additional information is available
at www.Centillium.com
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Forward Looking Statements
Except for historical information contained in this press release, the foregoing
contains forward-looking statements that involve risks and uncertainties.
Actual results may differ materially from those indicated by such forward-
looking statements based on a variety of risks and uncertainties, including the
risks and uncertainties relating to actual quantities and timing of any orders
received under the contract and the successful development and market acceptance
of Centillium's new products. Information about potential factors that could
affect Centillium's financial results is included in Centillium's prospectus and
Quarterly Reports on Form 10-Q and will be included in Centillium's Annual
Report on Form 10-K, which will be filed with the Securities and Exchange
Commission.
Copyright 2001 Centillium Communications, Inc. All rights reserved. All other
products or service names mentioned herein are the property of their respective
owners.
