Intel Agrees To Acquire Trillium Digital Systems, Inc. For $300 Million

Agreement to Expand Intel's Communications Software Components for More Complete Intel® Internet Exchange™ Architecture Solutions

SANTA CLARA, Calif., Aug. 1, 2000 - Intel Corporation today announced it has entered into a definitive agreement to acquire privately held Trillium Digital Systems, Inc. in a transaction valued at approximately $300 million in cash and unregistered Intel common stock. This acquisition will complement Intel's world-class communication silicon business with the communications software products, support and services necessary to accelerate Intel's ability to offer its networking and telecommunications customers a more complete platform-level solution.

Trillium, an ISO 9001 certified software company, is a leading provider of communications software solutions. Trillium's source code solutions are used in more than 500 projects by industry-leading suppliers of wireless, Internet, broadband and telephony products. Trillium's high-performance, high-availability software and services reduce the time, risk and cost of implementing industry standards-based communications protocols such as SS7, IP, ATM, Wireless and ISDN.

"Networking and telecommunication OEMs are recognizing the value of more complete solutions from their suppliers. In addition to off-the-shelf silicon, customers are looking for off-the-shelf software components that enable them to reduce development time and focus their internal resources on differentiating their products." said Tom Franz, Intel vice president and general manager, Network Processing Group. "We expect Trillium, as an Intel subsidiary, to continue developing and supporting portable software solutions for the communications industry, while adding a new line of solutions that are optimized for the Intel® Internet Exchange™ architecture. Trillium also intends to build relationships with other technology providers to enable more integrated and value-added solutions for OEMs."

When the acquisition is complete, Trillium will become part of Intel's Network Processing Group and will continue to grow and support its existing business. Intel, through this new subsidiary, intends to offer a broad range of portable source code communications software solutions.

Trillium's software architecture will become an integral part of the Intel Internet Exchange (IX) architecture to provide an even broader set of solutions that cost-effectively meet the flexibility, feature and performance demands of next generation networking and telecommunications equipment manufacturers. The Intel IX architecture is a framework for designing powerful and flexible networking and telecommunications equipment using reprogrammable silicon and software including Intel's IXP family of network processors; embedded versions of the Pentium® II, Pentium® III and Intel® Celeron® application services processors; and companion chips.

Since the IX architecture was announced last year, Intel has introduced a number of new products and initiatives that build on the IX architecture vision, including a new version of the IXP1200 Network Processor, new optical networking and access components for the telecommunications market segment, the IX Architecture Developers forum, and the Intel Communications Fund.

"The synergy between Trillium's software architecture and the Intel IX architecture will enable us to deliver hardware and software offerings to our customers that help save them time and money," said Jeff Lawrence, CEO of Trillium. "The addition of Trillium's products and expertise to Intel's existing communications software portfolio will enable us to offer more complete platform-level solutions that help our customers bring their products to market more quickly."

Trillium, with headquarters in Los Angeles, Calif., also has operations in Vancouver, British Columbia, and sales offices worldwide.

The acquisition is subject to regulatory approval and customary closing conditions. When complete, Trillium will become a wholly owned subsidiary of Intel operating within Intel's Networking Communications Group.

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