Intel To Acquire Ambient Technologies

Acquisition Aimed at Enabling Residential Broadband Access

SANTA CLARA, Calif., Feb. 3, 2000 - Intel Corporation today announced it has entered into a definitive agreement, subject to regulatory approval and associated closing conditions, to acquire privately held Ambient Technologies, Inc. in a cash transaction valued at approximately $150 million. Ambient, headquartered in Fremont, Calif., develops highly integrated digital subscriber line (DSL) silicon solutions and analog modems designed to bring high-speed Internet access to home users and small businesses. DSL technology uses existing telephone lines to deliver Internet content at up to 150 times faster than a 56k modem.

Ambient will provide Intel with a complementary set of silicon capabilities and modems including a new chipset that will deliver simultaneous standards-based DSL and high-speed analog modem (V.90) capabilities in a single device. Until widespread deployment of DSL is available, most consumers will continue to connect to the Internet via traditional analog modems. Providing users with both DSL and analog modem capabilities is seen as a necessary interim step on the way to full broadband Internet access.

"It is imperative that we offer customers a smooth migration path from their existing analog modems to a broadband modem," said Mark Christensen, vice president and general manager of Intel's Network Communications Group. "A similar migration path was instrumental in helping businesses make the transition from Ethernet to Fast Ethernet. Ambient's integrated analog and DSL modem will provide an ideal way for customers to take advantage of high speed Internet access as it becomes available to them."

Earlier this month, Intel announced the Intel® PRO/DSL 3100 Modem marking Intel's initial step in delivering standards-based broadband access technology. Both the Intel PRO/DSL 3100 Modem and Ambient's chipset support the G.Lite industry standard that increases interoperability of asymmetrical DSL (ADSL) technology. As one of the founding members of the Universal ADSL Working Group, Intel helped develop the G.Lite standard and facilitate G.Lite product interoperability. This technology will be a key component in Intel's effort to extend its leadership in business connectivity to the residential and small business segments.

Fred Schuckert, CEO of Ambient, will continue as general manager, reporting to Greg Lang, vice president and general manager of Intel's Network Interface Division. Under the agreement, Ambient would become a wholly owned subsidiary of Intel reporting within Intel's Network Communications Group. Ambient employees will continue as employees of the new subsidiary.

About Ambient Technologies, Inc.
Headquartered in Fremont, Calif., Ambient Technologies is a privately held technology company that develops integrated circuits for leading-edge communications products. In 1998, Cirrus Logic spun-off its PC Modem Business Unit. Employees purchased this division in January 1999 and formed Ambient Technologies, Inc.. Ambient has continued to market its V.90 product line and is expanding into DSL and home networking market segments. Ambient's Engineering Design Center is located in Raleigh, N.C., and it has sales and support offices in Taiwan and Germany. More information about Ambient can be found at www.ambient.com.

* Other names and brands may be claimed as the property of others.