Broadcom Corporation (Nasdaq: BRCM), a global leader in semiconductors for wired and wireless communications, today announced that the company's leading NetXtreme(R) II converged network interface controllers (C-NICs) support the Microsoft Windows Server 2003 Scalable Networking Pack. The combination of Broadcom(R) C-NIC technology and Microsoft's Scalable Networking Pack delivers the industry's most advanced network performance while reducing operating system bottlenecks, such as central processing unit (CPU) overhead and memory bandwidth related to network packet processing, without requiring changes to existing applications or network management tools. These network performance enhancements will soon be available on next generation servers developed by the leading server original equipment manufacturers (OEMs) worldwide.


Continual improvements in network speeds, coupled with ever increasing network traffic loads, have resulted in dramatic increases in operating system resources associated with network packet processing. Due to this overhead, applications and services that depend on the network can experience significant scaling issues that effectively reduce the performance gains that are possible with increased network speeds. The Scalable Networking Pack enables the next generation of server networking hardware, providing scalability and performance enhancements to existing and future Microsoft Windows Server 2003 investments.


To support these Scalable Networking enhancements, Broadcom worked strategically with Microsoft on a number of networking technologies focused on improving the overhead associated with network packet processing on the Microsoft Windows Server 2003 operating system. The technological enhancements developed by Broadcom are featured within all NetXtreme II C-NIC products and include support for Microsoft's TCP Chimney Offload and Receive-side Scaling functionality.


TCP Chimney Offload provides an automated offload of transmission control protocol (TCP) traffic processing via a TCP offload engine (TOE) that is incorporated in Broadcom's NetXtreme II C-NIC devices. In this model, the TCP Chimney Offload greatly reduces CPU overhead by delegating network packet processing tasks to the C-NIC, freeing up CPU cycles to perform other application tasks such as supporting more users sessions or processing application requests with lower latency.


Broadcom NetXtreme II C-NIC devices also feature Receive-side Scaling functionality, in support of the Scalable Networking Pack, that enables improvements in the processing of inbound network traffic. Receive-side Scaling helps load-balanced incoming network traffic across multiple CPUs, sharing the network traffic load as either a system load or as network conditions vary. In either case, any application that has significant network traffic and runs on a multiprocessor host (i.e web server or file server), can benefit from Receive-side Scaling functionality within Broadcom's C-NIC devices.


"The combination of Broadcom C-NICs and Microsoft's Scalable Networking Pack enables IT professionals to cost-effectively scale their existing network-based applications to meet the growing demands placed on their IT infrastructure resources," said Greg Young, Vice President and General Manager of Broadcom's High-Speed Controller Line of Business. "Broadcom is very excited about the release of the Scalable Networking Pack and we believe that our C-NIC implementation, in support of the Scalable Networking Pack, will become the baseline technology for the next generation of volume servers."


"Through the combination of the Windows Server 2003 Scalable Networking Pack and Broadcom's C-NIC technology, IT professionals can easily benefit from the performance and scalability gains made possible by today's faster networks," said Margaret Arakawa, Senior Director, Server and Tools Business at Microsoft Corporation. "By enabling existing Windows Server 2003 installations to benefit from Broadcom's C-NIC offload capabilities, the Windows Server 2003 Scalable Networking Pack reduces the need to purchase additional servers or replace existing hardware investments."


NetXtreme II C-NIC Product Description


Broadcom's NetXtreme II family of C-NICs is designed to drastically change the way servers are built and deployed in the future. This family of single-chip C-NIC devices simultaneously runs four specific functions including accelerated TOE for data networking, accelerated iSCSI for block storage networking, accelerated remote direct memory access (RDMA) for high-performance server clustering, and remote system management pass-through functions -- all over a single Ethernet fabric. By converging disparate network traffic over Ethernet, NetXtreme II C-NICs enable a lower total cost of ownership (TCO) relative to configuring, maintaining and running four separate and disparate networks.


Broadcom has shipped over 100 million Gigabit Ethernet (GbE) controller chips to date, demonstrating its leadership in the GbE LAN-on-motherboard (LOM) market and continues to maintain a leading position in GbE revenue and units shipped according to independent market research firms.


About Broadcom


Broadcom Corporation is a global leader in semiconductors for wired and wireless communications. Our products enable the delivery of voice, video, data and multimedia to and throughout the home, the office and the mobile environment. Broadcom provides the industry's broadest portfolio of state-of-the-art system-on-a-chip and software solutions to manufacturers of computing and networking equipment, digital entertainment and broadband access products, and mobile devices. These solutions support our core mission: Connecting everything(R).


Broadcom, one of the world's largest fabless semiconductor companies with annual revenue of more than $2.5 billion, is headquartered in Irvine, Calif., and has offices and research facilities in North America, Asia and Europe. Broadcom may be contacted at 1-949-450-8700 or at http://www.broadcom.com.


Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:


All statements included or incorporated by reference in this release, other than statements or characterizations of historical fact, are forward-looking statements. These forward-looking statements are based on our current expectations, estimates and projections about our industry and business, management's beliefs, and certain assumptions made by us, all of which are subject to change. Forward-looking statements can often be identified by words such as "anticipates," "expects," "intends," "plans," "predicts," "believes," "seeks," "estimates," "may," "will," "should," "would," "could," "potential," "continue," "ongoing," similar expressions, and variations or negatives of these words. These forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause our actual results to differ materially and adversely from those expressed in any forward-looking statement.


Important factors that may cause such a difference for Broadcom in connection with Gigabit Ethernet controller products include, but are not limited to, general economic and political conditions and specific conditions in the markets we address, including the volatility in the technology sector and semiconductor industry, trends in the broadband communications markets in various geographic regions, including seasonality in sales of consumer products into which our products are incorporated, and possible disruption in commercial activities related to terrorist activity or armed conflict in the United States and other locations; the rate at which our present and future customers and end-users adopt Broadcom's technologies and products in the markets for enterprise networking applications; delays in the adoption and acceptance of industry standards in those markets; our ability to scale our operations in response to changes in demand for our existing products and services or demand for new products requested by our customers; the timing, rescheduling or cancellation of significant customer orders and our ability, as well as the ability of our customers, to manage inventory; the gain or loss of a key customer, design win or order; intellectual property disputes and customer indemnification claims and other types of litigation risk; our ability to specify, develop or acquire, complete, introduce, market and transition to volume production new products and technologies in a cost-effective and timely manner; our ability to retain, recruit and hire key executives, technical personnel and other employees in the positions and numbers, with the experience and capabilities, and at the compensation levels needed to implement our business and product plans; problems or delays that we may face in shifting our products to smaller geometry process technologies and in achieving higher levels of design integration; competitive pressures and other factors such as the qualification, availability and pricing of competing products and technologies and the resulting effects on sales and pricing of our products; the timing of customer-industry qualification and certification of our products and the risks of non-qualification or non-certification; our ability to timely and accurately predict market requirements and evolving industry standards and to identify opportunities in new markets; changes in our product or customer mix; the volume of our product sales and pricing concessions on volume sales; the availability and pricing of third party semiconductor foundry, assembly and test capacity and raw materials; fluctuations in the manufacturing yields of our third party semiconductor foundries and other problems or delays in the fabrication, assembly, testing or delivery of our products; the risks of producing products with new suppliers and at new fabrication and assembly facilities; the quality of our products and any remediation costs; the effectiveness of our expense and product cost control and reduction efforts; the risks and uncertainties associated with our international operations, particularly in light of recent events; the effects of natural disasters, public health emergencies, international conflicts and other events beyond our control; the level of orders received that can be shipped in a fiscal quarter; and other factors.


Our Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K, and other Securities and Exchange Commission filings discuss the foregoing risks as well as other important risk factors that could contribute to such differences or otherwise affect our business, results of operations and financial condition. The forward-looking statements in this release speak only as of this date. We undertake no obligation to revise or update publicly any forward-looking statement for any reason.


Broadcom(R), the pulse logo, Connecting everything(R), the Connecting everything logo and NetXtreme(R) are among the trademarks of Broadcom Corporation and/or its affiliates in the United States, certain other countries and/or the EU. Microsoft(R), Windows(R) and Windows Server(TM) are trademarks of Microsoft Corporation. Any other trademarks or trade names mentioned are the property of their respective owners.


Broadcom Trade Press Contact


Scott Harlin


Public Relations Manager


949-926-5226


sharlin@broadcom.com


Broadcom Investor Relations Contact


T. Peter Andrew


Vice President, Investor Relations


949-926-5663


andrewtp@broadcom.com


Broadcom Technical Contacts


Allen Light


Product Line Manager, NetXtreme II C-NICs


949-926-5744


alight@broadcom.com