T-Venture Makes Strategic Investment in Lantiq

T-Venture investment strengthens the company’s broadband communications market position and gives a competitive edge for future developments

Munich/Neubiberg and Bonn, Germany – March 01, 2010 – Lantiq, a leading company in next-generation access and home networking technologies, and T-Venture today announced the closing of a strategic investment. T-Venture, the venture capital company of Deutsche Telekom, is supporting Lantiq with a capital investment and will provide future strategic advice to the company. By agreement, the terms of the deal remain undisclosed.

“We are pleased to announce that we have taken our relationship with Deutsche Telekom Group to the next level with this investment, and our partnership will help drive our products and technology roadmap for the benefit of our customers and the industry,” stated Christian Wolff, CEO of Lantiq. “Deutsche Telekom is one of the world’s leading carriers defining and driving the architecture of next generation networks. The investment in Lantiq demonstrates trust and enthusiasm in our business strategy and technology portfolio, and we look forward to working together.”

“Continuing to expand and improve broadband infrastructure is a priority for Deutsche Telekom. We are convinced of the great potential that Lantiq’s innovative semiconductor solutions offer,” said Bruno Jacobfeuerborn, Member of the Board of Management T-Home, Technology, and Managing Director Technology, T-Mobile Germany. “Lantiq's innovative technology portfolio and future product and market roadmaps perfectly match Deutsche Telekom’s needs. Both parties involved can profit from the investment – in terms of technology as well as market success.”

With revenue of more than 450 million USD in 2009, Lantiq is the second largest fabless semiconductor company in Europe. Lantiq continues to bring broadband solutions to life and remains dedicated to its customers, enabling carrier innovations for next generation networks and digital homes. According to the most recent market research data from iSuppli for 3Q09, Lantiq ships 34% of all xDSL ports worldwide, which positions the company as a leading provider for wireline access networks.

About LANTIQ

Lantiq offers a broad and innovative product portfolio for Next Generation Networks and the Digital Home. The company has a global team of about 1,000 experts in Europe, North America, the Middle East and the Asia Pacific regions. The company is headquartered in Neubiberg just outside of Munich, Germany and specializes on broadband communications, encompassing analog, digital and mixed-signal ICs along with comprehensive software suites. Lantiq is a fabless company, and its semiconductor solutions are deployed by major carriers and in home networks in every region of the world. Further information is available at: www.Lantiq.com

About T-Venture

T-Venture Holding GmbH, is one of the most important corporate venture capital companies in the world. Founded in 1997 as a wholly owned subsidiary of Deutsche Telekom AG, it has since then invested in young companies that demonstrate economic and technological synergies with the Deutsche Telekom business units as well as above-average growth potential. Its head office is in Bonn. It is supported and complemented in its activities by T-Venture of America, Inc. in Foster City, Silicon Valley, and in Seattle. Investment activities focus on Europe, the United States and Asia. T-Venture currently manages the T-Mobile Venture Fund, the Connected Life and Work Fund, the T-Home Venture Fund, the T-Systems Venture Fund and the T-Corporate Venture Fund. Further information is available at: www.t-venture.de