Lantiq Acquires IP and Assets from Metalink and Broadens its Portfolio in Leading Edge WLAN 11n Technologies

Neubiberg, Germany – January 6, 2010 – Lantiq, a leading company in next-generation Access and Home Networks, today announced its second acquisition shortly after becoming a stand-alone company. Lantiq acquired WLAN (Wireless Local Area Network) related assets and intellectual property (IP) from Israel based Metalink Ltd., a leading provider of high performance wireless communication silicon solutions with the capability to deliver HD-video-streams over the 802.11n standard. The transaction was signed on December, 30th , 2009 and closing is expected for end of January.

“Metalink really has developed an outstanding multi-stream technology, which is very successful in today’s video-bridging environment and has proven many times its performance capabilities”, said Christian Wolff, CEO of Lantiq. “Shortly after our first acquisition in the home networking field, today we set another milestone for our company and further expand and complement our broadband product portfolio.”

The purchase price is up to US $16.9 million; including an $8.9 million initial payment and an up to $8 million additional payment based on future performance.

Lantiq also announced the establishment of a technical competence center in Yakum, Israel, where a team of about 50 experienced engineers will drive innovation. The acquired 802.11n MIMO-technology (Multiple Input Multiple Output) features – in contrast to today’s conventional WLAN solutions – flawless and unobstructed HD-Video streaming over Wireless-LAN without making any compromise to Quality-of-Service.

Lantiq will integrate the technology in its existing roadmap and future products. In addition to reference designs, first ICs produced in 65nanometer process technology are already sampling and will be available for mass production in spring 2010.

About Lantiq

Lantiq offers a broad and innovative product portfolio for Next Generation Networks and the Digital Home. The company employs about 900 people in Europe, North America and the Asia Pacific region. Headquartered in Neubiberg, Germany, Lantiq 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