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RED BANK, N.J. -- Conexant Systems, Inc. (Nasdaq:CNXT) today announced the completion of its merger with GlobespanVirata, Inc. The two companies received the required shareowner approvals on Wednesday, Feb. 25, 2004, and the transaction closed on Friday, Feb. 27, 2004. The stock of the combined company begins trading today on the Nasdaq National Market under the ticker symbol 'CNXT.' The merged company has annual run-rate revenues of approximately $1.2 billion and 2,400 employees worldwide. Based on Conexant's closing price on Feb. 27, 2004, the combined company has a market valuation of approximately $3.4 billion.
'We successfully combined the highly complementary product and technology portfolios of Conexant and GlobespanVirata to create a worldwide leader in semiconductor solutions for broadband communications, enterprise networks and the digital home, three of the industry's most exciting and fastest growing segments,' said Armando Geday, Conexant's chief executive officer. 'The new Conexant has leading positions in digital subscriber line connectivity, wireless local area networking, dial-up modems, home networking, broadcast video products and digital set-top box system solutions. Our unique combination of products and technologies will drive broader, deeper engagements with worldwide customers that are recognized leaders in broadband communications and consumer electronics.'
The combined company, with an engineering and technical marketing staff of approximately 1,600, is addressing market segments that are expected to grow to $10 billion in annual sales over the next several years. These market segments include broadband access, wireless networking and media processing.
Broadband access products are comprised of central office and client-side solutions. The company's DSL and cable modem offerings enable service providers to deliver voice, video and data content to homes and businesses around the world, providing customers with multi-megabit connections to the Internet. The company also offers a leadership portfolio of wireless LAN, or 'Wi-Fi' chipsets, complemented by a suite of networking components that link multiple PCs and peripherals over a home's telephone lines, electrical wiring, Ethernet, or wireless links. These DSL and Wi-Fi solutions are also being deployed in enterprise networks to provide high-speed upstream and downstream transmission rates for bandwidth-intensive applications and productivity increases. Media processing solutions include digital set-top box and PC video solutions that enable users to bring audio and video entertainment content from broadcast satellite, cable and terrestrial networks into and throughout the home. Together, these technologies allow consumers to access, share and display content on PCs, digital TV products and other emerging system platforms.

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'We have made outstanding progress toward integrating the organizations, systems, technologies and processes of Conexant and GlobespanVirata over the past two months and are in a strong position as we begin combined operations today,' said Geday. 'The new Conexant has the scale and scope to make the necessary R&D investments for continued innovation leadership. We remain completely confident that the merged company will deliver stronger financial performance and will create more value for our shareholders, customers and employees than either Conexant or GlobespanVirata could have operating independently.'
Conexant Systems Inc.

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GlobespanVirata Inc.