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Broadcom Becomes the New Worldwide Market Share Leader in Ethernet Semiconductor Revenues According to IDC

Posted on: Monday, 26 April 2004, 06:00 CDT

IRVINE, Calif., April 26 /PRNewswire-FirstCall/ -- Broadcom Corporation , a leading provider of highly integrated semiconductor solutions enabling broadband communications, today announced that in 2003 it achieved the worldwide market leadership position in Ethernet semiconductor revenues. According to IDC's "Worldwide Ethernet Semiconductor 2003 Vendor Analysis," Broadcom surpassed Intel to reach the top position based on its success in Fast Ethernet (FE) and Gigabit Ethernet (GbE) switch ASSPs (application-specific semiconductor standard products) as well as its success in securing GbE NIC/LOM designs within certain top accounts. IDC reported that Broadcom's combined FE and GbE revenue grew almost 50% year-over-year.

Broadcom also announced today that it has surpassed the cumulative milestone of over one billion Ethernet ports, including over 350 million complete switch ports, shipped -- to personal computer and networking customers worldwide, including all Tier 1 system manufacturers. This includes Ethernet solutions that address switch and router/gateway systems-on-a-chip (SoC), physical layer (PHYs) devices, media access controllers (MACs) for network interface card (NIC) and LAN on motherboard (LOM) applications, serializer/deserializers, network processors, switch fabrics, and application- specific integrated circuits (ASICs). These solutions have become the foundation for a number of leading OEM/ODM networking products announced throughout 2003 in the enterprise, small-to-medium-sized business and home networking markets.

Backed by IDC's report, Broadcom is the leading provider of end-to-end Ethernet solutions that connect enterprise wiring closets, data centers and core networks, remote offices-branch offices, small-to-medium sized businesses, small offices-home offices, and personal computers. As the pioneer of Gigabit Ethernet-over-Copper integrated circuit technology, Broadcom has led the industry migration from Fast Ethernet and is now accelerating the adoption of Gigabit Ethernet and 10 Gigabit Ethernet, providing the industry's most widely accepted and deployed portfolio of Ethernet products. Broadcom's Ethernet technology enables the high-speed transmission of voice, video and data services over the Category 5 unshielded, twisted-pair copper wiring that is widely deployed in enterprise and small office networks.

"The migration to Gigabit Ethernet continues to be the leading driver for chip vendors as this technology continues to migrate from servers and LAN switch aggregation segments to higher volume PCs and desktop switches," said Sean Lavey, Semiconductor Program Manager for IDC. "We expect end-users will continue to find the higher bandwidth of GbE attractive as it enables more advanced applications while increasing overall system performance."

"Broadcom continues to experience solid growth and market leadership in the Gigabit Ethernet networking infrastructure segment by providing a broader range of features and greater performance, as well as stable technology based upon five generations of field-proven products, and continuing improvements in power dissipation and port integration," said Alan E. Ross, Broadcom's President and CEO. "In addition to the continued ramp of our Gigabit Ethernet products, our Fast Ethernet products have experienced record results as well, driven by the adoption of switching technologies into new products such as wireless, cable and DSL gateways, as well as continued demand from our international customers."

Broadcom's family of Fast Ethernet, Gigabit Ethernet and 10 Gigabit Ethernet products includes single-channel and multi-channel transceivers, StrataSwitch(R) II and StrataXGS(R) enterprise switch SoCs, ROBOswitch(TM) and ROBO-HS(TM) SMB switch and router/gateway SoCs, Sentry5(TM) secured switch processors, NetXtreme(TM) and NetLink(TM) controllers, serializer/deserializers, CryptoNetX(TM) security processors (both IPsec and SSL), SONET/SDH offerings and custom ASICs.

About Broadcom

Broadcom Corporation is a leading provider of highly integrated semiconductor solutions that enable broadband communications and networking of voice, video and data services. We design, develop and supply complete system- on-a-chip (SoC) solutions incorporating digital, analog, and radio frequency (RF) technologies, as well as related hardware and software system-level applications. Our diverse product portfolio addresses every major broadband communications market, and includes solutions for digital cable and satellite set-top boxes; high definition television (HDTV); cable and DSL modems and residential gateways; high-speed transmission and switching for local, metropolitan, wide area and storage networking; home and wireless networking; cellular and terrestrial wireless communications; Voice over Internet Protocol (VoIP) gateway and telephony systems; broadband network and security processors; and SystemI/O(TM) server solutions. These technologies and products support our core mission: Connecting everything(R).

Broadcom is headquartered in Irvine, Calif., and may be contacted at 1-949-450-8700 or at http://www.broadcom.com/.

Safe Harbor Statement under the Private Securities Litigation Reform Act

of 1995:

All statements included or incorporated by reference in this release, other than statements or characterizations of historical fact, are forward- looking statements. These forward-looking statements are based on our current expectations, estimates and projections about our industry, management's beliefs, and certain assumptions made by us, all of which are subject to change. Forward-looking statements can often be identified by words such as "anticipates,""expects,""intends,""plans,""predicts,""believes,""seeks,""estimates,""may,""will,""should,""would,""could,""potential,""continue," similar expressions, and variations or negatives of these words. These forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause our actual results to differ materially and adversely from those expressed in any forward-looking statement.

Important factors that may cause such a difference for Broadcom in connection with its Fast Ethernet and Gigabit Ethernet products include, but are not limited to, general economic and political conditions and specific conditions in the markets we address, including the volatility in the technology sector and semiconductor industry, trends in the broadband communications markets in various geographic regions, and possible disruption in commercial activities related to terrorist activity or armed conflict in the United States and other locations; the rate at which our present and future customers and end-users adopt Broadcom's technologies and products in the markets for enterprise networking applications; delays in the adoption and acceptance of industry standards in those markets; competitive pressures and other factors such as the qualification, availability and pricing of competing products and technologies and the resulting effects on sales and pricing of our products; our ability to scale our operations in response to increases in demand for our products and services; the availability and pricing of third party semiconductor foundry and assembly capacity and raw materials; the timing, rescheduling or cancellation of significant customer orders and our ability, as well as the ability of our customers, to manage inventory; our ability to retain and hire key executives, technical personnel and other employees in the numbers, with the capabilities, and at the compensation levels needed to implement our business and product plans; fluctuations in the manufacturing yields of our third party semiconductor foundries and other problems or delays in the fabrication, assembly, testing or delivery of our products; the risks of producing products with new suppliers and at new fabrication and assembly facilities; the loss of a key customer; our ability to specify, develop or acquire, complete, introduce, market and transition to volume production new products and technologies in a timely manner; the timing of customer-industry qualification and certification of our products and the risks of non-qualification or non-certification; the volume of our product sales and pricing concessions on volume sales; the effects of new and emerging technologies; changes in our product or customer mix; intellectual property disputes and customer indemnification claims and other types of litigation risk; problems or delays that we may face in shifting our products to smaller geometry process technologies and in achieving higher levels of design integration; the quality of our products and any remediation costs; the effectiveness of our expense and product cost control and reduction efforts; the risks and uncertainties associated with our international operations, particularly in light of recent events; the effects of natural disasters, public health emergencies, international conflicts and other events beyond our control; the level of orders received that can be shipped in a fiscal quarter; and other factors.

Our Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K, and other Securities and Exchange Commission filings discuss the foregoing risks as well as other important risk factors that could contribute to such differences or otherwise affect our business, results of operations and financial condition. The forward-looking statements in this release speak only as of this date. We undertake no obligation to revise or update publicly any forward-looking statement for any reason.

Broadcom(R), the pulse logo, Connecting everything(R), StrataSwitch(R), StrataXGS(R), CryptoNetX(TM), NetLink(TM), NetXtreme(TM), ROBO-HS(TM), ROBOswitch(TM), Sentry5(TM) and SystemI/O(TM) are trademarks of Broadcom Corporation and/or its affiliates in the United States and certain other countries. Any other trademarks or trade names mentioned are the property of their respective owners.

Broadcom Trade Press Contact Broadcom Investor Relations Contact

Scott Harlin T. Peter Andrew Sr.

Sr. Communications Specialist Director, Investor Relations

949-926-5226 949-926-5663

sharlin@broadcom.com andrewtp@broadcom.com

Broadcom Business Press Contact

Bill Blanning Sr. Director,

Corporate Communications

949-926-5555

blanning@broadcom.com

Broadcom Corporation

CONTACT: Press, Scott Harlin, Sr. Communications Specialist,+1-949-926-5226, or sharlin@broadcom.com, or Press, Bill Blanning Sr.Director, Corporate Communications, +1-949-926-5555, or blanning@broadcom.com,Investors, T. Peter Andrew Sr., Director, Investor Relations, +1-949-926-5663,or andrewtp@broadcom.com

Web site: http://www.broadcom.com/

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