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Texas Instruments Selected by Vonage® as its Preferred Provider for VoIP Silicon and Software

Agreement with Biggest Broadband Telephony Provider Solidifies TI's Position as Top Supplier of VoIP Technology, Shipping More than 100 Million Ports Worldwide

Mar 7, 2005

SAN JOSE, Calif. (March 7, 2005) - Texas Instruments Incorporated (TI) [NYSE:TXN] and Vonage, the leading broadband phone company, today announced that Vonage has selected TI as its preferred provider of Voice over IP (VoIP) silicon and software. This agreement between the two companies encourages VoIP equipment manufacturers to use TI's VoIP silicon and software technology when developing products for use on Vonage's broadband telephony network. TI has been supplying solutions to the IP telephony industry since its inception and has shipped over 100 million VoIP ports to date for the IP phone, customer premise equipment (CPE) gateway, and high-density infrastructure markets.
"TI is a great partner and has helped Vonage become the largest provider of broadband telephony, and this partnership will continue to drive consumers to switch from the traditional PSTN service to broadband telephony," said Jeffrey A. Citron, chairman and CEO of Vonage Holdings Corporation. "We recognize that TI's VoIP software and chips are the best available and recommend that products used on our network incorporate TI's field-proven technology. This will help us deliver to our customers the highest quality and most advanced VoIP solutions, spurring faster VoIP adoption rates and further validating the market."
TI and Vonage have worked together over the last year to develop VoIP products compatible with the Vonage network and enhance its software offering to create new VoIP services. At last month's Consumer Electronics Show (CES) in Las Vegas, the companies announced joint collaboration on the development of two new VoIP devices, including a VoIP-enabled videophone from Viseon and a cordless broadband telephone system from VTech. Both devices are compatible on Vonage's network and incorporate TI's VoIP software and silicon and are expected to be available later this year.
"Vonage´s impressive worldwide network handles more than 25 million calls a week, the majority of which are powered by TI´s VoIP technology," said Bill Simmelink, general manager of TI´s VoIP business unit. "TI shipped 50 million VoIP ports through 2003 and doubled that figure in the last year alone, becoming the first company to reach the milestone of shipping over 100 million VoIP ports, demonstrating the explosive growth of VoIP. Together with Vonage we are on track to deliver the benefits of broadband telephony to millions of consumers, building on our leadership and technology innovations in VoIP." 
TI holds the largest share of the VoIP CPE market and has provided technology for more than 80 percent of all residential and enterprise VoIP gateways. The company also leads in shipments of high-density VoIP infrastructure solutions, owning 80 percent market share. TI ships its IP phone technology to four of the top five manufacturers, and, as the predominant supplier to the largest provider, owns a majority share of the IP phone segment. Products incorporating TI's technology are deployed by service providers throughout the world and power billions of minutes of VoIP calls every month.
"TI is effectively the only vendor that competes in all three VoIP market segments - CPE, IP phones and high-density infrastructure - and has amassed an impressive roster of manufacturing and service provider customers," said Sam Lucero, industry analyst at In-Stat. "The company has been developing technology for the VoIP industry since the early 1990s and we believe that TI has garnered a majority share of the overall VoIP IC market."

Texas Instruments Broadband Solutions

For OEMs developing broadband communications solutions, TI´s advanced signal processing-based silicon and software platforms deliver the optimal performance, lower power consumption, and system-level integration required to rapidly deploy differentiated next-generation products for cable modems, digital subscriber line (xDSL) modems, integrated access devices (IADs), Voice over Internet Protocol (VoIP) gateways, carrier infrastructure, and home and office wireless networking. See www.ti.com/broadband.