IPWireless and Atmel Partner to Develop UMTS TDD/VoIP Mobile Handsets

Companies Complete First VoIP Mobile Handset Call Over UMTS TDD

SAN JOSE, CA, October 19, 2004 . . . Atmel® Corporation (Nasdaq: ATML), a global leader in the development and fabrication of advanced semiconductor solutions, and IPWireless announced today that they have collaborated, along with an Original Equipment Manufactures (OEM), to develop a UMTS TDD mobile handset. The mobile handset will allow UMTS TDD network operators to offer carrier-grade mobile voice over IP (VoIP) services, in addition to existing broadband and other packet based services, on their converged networks. IPWireless and Atmel have already completed the first successful transmission of a call from a mobile VoIP handset over UMTS TDD, an important milestone in the development of commercial UMTS TDD handsets.

UMTS TDD, the 3GPP standard optimized for high-speed data, is ideal for carrier-grade voice applications with its high capacity, low latency, and low power requirements. IPWireless's latest UMTS TDD software supports both dedicated and shared channels, enabling operators to deliver circuit-switched quality while enjoying packet-based system economic benefits. Operators can leverage existing network infrastructure to add VoIP over UMTS TDD services in a highly efficient, reliable, and economic manner, thereby increasing revenue while augmenting subscriber services. With a UMTS TDD VoIP handset, subscribers will experience the same quality of voice service they expect from traditional mobile phones. In addition, the handset's USB port allows users to connect it to computers or other devices and use it as a very high-speed broadband modem.

The UMTS TDD VoIP handset will use Atmel's highly integrated AT76C902 VoIP system-on-a-chip as the main processor, with the IPWireless TDD Module performing the UMTS TDD modem functions. The AT76C902, running the VoIP protocol software, voice compression and decompression, also provides the phones application functions for control of the keypad, LCD, speaker and user interface. The OEM will provide the plastics, LCD displays and keypads from existing handset models. UMTS TDD handsets prototypes will be ready by the end of 2004 with commercial availability of phones expected mid-2005.

"We are pleased to partner with Atmel to develop a mobile handset that will allow UMTS TDD operators to offer their subscribers the best in voice and broadband services while creating an additional revenue stream," said Chris Gilbert, chief executive officer, IPWireless. "Atmel's reputation in the industry is unparalleled, and we believe that their contributions to the UMTS TDD mobile handset ensure that the device will exceed operator and subscriber expectations."

Nick Kanopoulos, Director of Atmel's Multimedia and Communication Business Unit said, "We are excited to work with IPWireless on the development of a VoIP TDD cellular phone using Atmel's second generation of dedicated VoIP processors. The introduction of this handset will further expand the VoIP market penetration by Atmel for wireless and corded VoIP phones. The forecasted growth of the VoIP market will provide excellent potential revenue for both OEMs and service providers. This development is a fine example of a convergence product that provides additional capabilities over an already deployed network." Mr. Kanopoulos further stated, "the use of the AT76C902, which is available with Atmel's SIP stack, various audio codecs and user interface will enable a first to market low power, feature enriched combo-handset.

UMTS TDD VoIP Handset features

• Voice capability (VoIP) using G.729AB codec and SIP stack (other codecs also available)
• High speed data capability, acting as a modem using USB to a host PC
• Support for SIM/USIM authentication
• Operates in 1900-1920 and 2010-2025MHz TDD
• Colour display, with backlight.
• Front monochrome display for CLI and clock
• MMI based on existing Atmel 802.11 VoIP Phone
• Connector for hands-free and charger

UMTS TDD, a global standard that can be used by operators and manufacturers worldwide, has emerged as the leading standard for mobile broadband, with commercial deployments in several countries around the world including Australia, Germany, Malaysia, New Zealand, Portugal, South Africa, the United Kingdom, and the United States. The commercially proven Mobile Broadband system includes a complete network infrastructure, pocket-sized wireless desktop modems, and PC cards (PCMCIA) for laptops and PDAs. In addition, major equipment makers are developing a variety of network management and end user devices, including mobile voice over IP handsets and Compact Flash Cards, with IPWireless-licensed UMTS TDD chipsets embedded.

About Atmel

Founded in 1984, Atmel Corporation is headquartered in San Jose, California with manufacturing facilities in North America and Europe. Atmel designs, manufactures and markets worldwide, advanced logic, mixed-signal, nonvolatile memory and RF semiconductors. Atmel is also a leading provider of system-level integration semiconductor solutions using CMOS, BiCMOS, SiGe, and high-voltage BCDMOS process technologies.

© Atmel Corporation 2004. All rights reserved. Atmel®, logo and combinations thereof, are registered trademarks, and Everywhere You AreSM is the trademark of Atmel Corporation or its subsidiaries. Other terms and product names may be trademarks of others.

About IPWireless

IPWireless offers advanced standards-based broadband wireless technology that drastically improves the way people around the world connect and communicate at home, at the office, or on the road. With a full range of commercial network solutions and devices, IPWireless allows operators to offer a spectrum of fixed, portable, or completely mobile wireless services with unmatched economics and broadband performance. IPWireless has quickly established itself as a leader in the market, with commercial deployments in service for more than a year, trials with ten of the top twenty global wireless operators, and strategic partnerships and relationships with industry leading companies. IPWireless is a founding member of the Global UMTS TDD Alliance. For more information, visit the company's Web site at www.ipwireless.com.

IPWireless, the IPWireless logo, and IPW are trademarks of IPWireless, Inc. All other brands, products, or service names are or may be trademarks or service marks of their respective owners.