Centillium Communications Announces Definitive Agreement to Sell its DSL Business to Ikanos Communications, Inc.
The sale will allow Centillium to focus its resources on optical and voip, which are its two key growth businesses.

FREMONT, CA - Centillium Communications, Inc. (NASDAQ: CTLM), a leading provider of broadband access solutions, today announced it has entered into a definitive agreement to sell its DSL business to Ikanos Communications, Inc. for approximately $12 million in cash. The transaction is subject to customary closing conditions and is expected to close during the first quarter of 2008.

With this transaction, Ikanos will acquire Centillium’s DSL business including assets, technology and a number of the employees from its DSL team. Ikanos will also assume responsibility and continue to support Centillium’s worldwide DSL customer relationships.

As a result of the sale and certain related restructuring actions, Centillium expects to reduce its operating expenses by approximately $18 million per year, beginning in the second quarter of 2008.

“The sale of our DSL business will allow us to focus our resources on Optical and VoIP, our two key growth businesses,” said Faraj Aalaei, co-founder and CEO. “We believe that with this targeted focus, we will better serve our customers, reduce our operating loss and improve our prospects,” said Aalaei.

About Centillium Communications, Inc.
Centillium Communications, Inc. is a leading innovator of high performance, cost-effective semiconductor solutions that give consumers, enterprises and service providers the winning edge in broadband access. The company’s complete, end-to-end system-on-chip solutions accelerate development time-to-market for “last mile” products with Fiber-To-The-Premises (FTTP) and Voice-overInternet Protocol (VoIP) technologies. Centillium products include digital and mixed-signal integrated circuits and related software for FTTP central office and customer premises equipment and VoIP solutions for carrier- and enterprise-class gateways and consumer telephony. The company’s products also currently include Digital Subscriber Line (DSL) solutions. Centillium is a global company with headquarters in Fremont, CA. Additional information is available at www.centillium.com.

About Ikanos Communications, Inc.
Ikanos Communications, Inc. (NASDAQ: IKAN) develops chipsets that enable carriers to offer Fiber Fast™ bandwidth and Gigabit network processing for enhanced triple play services. Ikanos’ multi-mode VDSL2/ADSLx and network processor solutions power access infrastructure and customer premises equipment for many of the world’s leading network equipment manufacturers. Ikanos’ solutions enable fast and cost-effective carrier rollouts of interactive broadband services, including IPTV. For more information, visit www.ikanos.com.

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