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BROADCOM ACQUIRES ASSETS OF GADZOOX NETWORKS INC

Broadcom Corporation, a leading provider of integrated circuits enabling broadband communications, announced recently that it has acquired a substantial portion of the assets of Gadzoox Networks Inc, a leading provider of storage networking technology. Storage networks connect servers, switches and storage systems together to lower the total cost of ownership in business data centers.

The majority of storage networking options available today are based on non-interoperable implementations, creating an artificial cost barrier to widespread adoption, especially in the small- to medium-sized business segments of the market. The most widely deployed transport protocol for storage networking at present is Fibre Channel. Gadzoox Networks was the first company to develop open standards-based 1-, 2- and 10-Gigabit Fibre Channel technology that is also interoperable with legacy networks.

"Availability of proven Fibre Channel technology is a significant barrier to entry in the storage networking industry," said Alan E. "Lanny" Ross, president and CEO of Broadcom. "The acquisition of Gadzoox technology and the company's experienced engineering team will allow Broadcom to change the economic dynamics of storage networking, similar to our success in achieving industry leading integration and cost points for Ethernet networking."

"As storage requirements continue to grow in the data center, OEMs require solutions that simplify connectivity, save space, and require less power," said Steve Dalton, CEO of Gadzoox Networks. "Combining Broadcom's mixed-signal design expertise with the field-proven silicon and firmware of Gadzoox will create highly integrated silicon solutions that will enable server, switch and storage system OEMs to develop plug and play storage networks with vast improvements in power and footprint requirements."

With the addition of the Gadzoox technology to its product portfolio, Broadcom now has a complete suite of networking products for the storage industry including multi-port Gigabit Fibre Channel SerDes (serializers/deserializers), Gigabit Ethernet and iSCSI controllers, ServerWorks Serial ATA (SATA) controllers and I/O bridges, multi-protocol Gigabit switch fabrics, and SiByte broadband network processors.

Broadcom acquired the Gadzoox Networks assets for the cash purchase price of approximately $5.8 million, subject to a post-closing adjustment.

About Gadzoox Networks

Since 1996, Gadzoox Networks has driven the Storage Area Network (SAN) entry-level market with innovative Fibre Channel switching technology. The company is a voting member of the Storage Networking Industry Association (SNIA). Gadzoox Networks is headquartered in Santa Clara, Calif.

About Broadcom

Broadcom Corporation is the leading provider of highly integrated silicon solutions that enable broadband communications and networking of voice, video and data services. Using proprietary technologies and advanced design methodologies, Broadcom designs, develops and supplies complete system-on-achip solutions and related hardware and software applications for every major broadband communications market. Our diverse product portfolio includes solutions for digital cable and satellite set-top boxes; cable and DSL modems and residential gateways; high-speed transmission and switching for local, metropolitan and wide area networking; home and wireless networking; cellular and terrestrial wireless communications; Voice over Internet Protocol (VoIP) gateway and telephony systems; broadband network processors; and SystemI/O server solutions. These technologies and products support our core mission: Connecting everything.

Broadcom is headquartered in Irvine, Calif., and may be contacted at 949-450-8700 or at www.broadcom.com.

Contact: Glenn Josephson, Investor Relations, 949-585-5663, glennj@broadcom.com.