News & Events
Cahners In—Stat Group Report Names Intersil Wireless LAN Market Leader

IRVINE, CA, May 25, 2000 — Intersil (NASDAQ: ISIL) is currently the dominant force in the Wireless Local Area Network (WLAN) chip set marketplace, according to a new research report issued by Cahners In-Stat Group, a high-tech market research firm.

In a May 15 press release publicizing its report, In-Stat called Intersil "the dominant force in the WLAN chip set marketplace with their PRISM^® I and PRISM^® II WLAN chip sets holding the majority of market share." Intersil develops and markets its PRISM chip set technology and supporting design tools optimized for high performance WLAN products such as network interface cards (NICs), wireless access points, embedded modules for laptop PCs and point-to-point/point-to-multipoint wireless bridges.

"In-Stat’s report is a powerful endorsement of our PRISM technology and for the overall viability of wireless networks as a reliable, cost-effective and flexible connection to broadband services," said Larry Ciaccia, vice president and general manager of Intersil’s PRISM Wireless Products business. "Intersil will continue to take a strong leadership role by providing interoperable, reliable and affordable wireless solutions for users throughout homes and offices."

In-Stat’s report, "Wireless LAN IC Markets: Untethering the Enterprise," forecasts that the silicon market segment will experience rapid growth over the next several years, generating $785 million in revenue by 2004. The report also estimates that the market will be boosted by increased shipments of WLAN chip sets and IC components, which will grow at an average yearly rate of 41 percent and 10 percent respectively. In-Stat also predicts that growth in the IC component market will be coupled with an industry-wide consolidation of ICs, resulting in an overall drop in the price of WLAN-enabling NIC cards and laptop embedded chip sets.

"Rapidly-dropping prices for wireless networking equipment is being largely driven by bill-of-material cost reductions at the silicon level," said Allen Nogee, Senior Analyst for In-Stat’s Wireless Service. "Intersil has emerged as the dominant player in the marketplace through an ongoing re-engineering strategy that consistently pushes the envelope in terms of improved performance, higher integration and lower cost."

Aside from cost reduction, In-Stat’s report also points to the importance of new interoperability standards, higher transmission speeds capable of matching wired Ethernet and the inherent freedom derived from wireless computing networking. "There is another force that is driving the growth of wireless LANs that is not easily measured – the desire to break free of the shackles of a wired world and have the freedom to roam about an enterprise without wires," Nogee added.

Adoption of PRISM Technology
Since introducing the PRISM WLAN chip set in 1996, over forty companies have incorporated PRISM chips in more than 100 product designs. PRISM technology is designed to comply with the IEEE’s 802.11 global standard and Intersil plans to introduce better performing, more highly integrated chipset solutions roughly every nine months. PRISM chips are used in WLAN systems from industry leading companies including Nokia, 3Com, Nortel, Samsung, Siemens, Zoom Telephonics, Aironet, and SpectraLink.

About Intersil
Intersil uses its semiconductor expertise to enable highly integrated voice, data and video communications. Intersil's integrated communications portfolio includes PRISM^® Wireless Local Area Network (WLAN) chip sets that enable mobile connectivity products for the home and office; analog, mixed-signal and digital integrated circuits for broadband access to wireless and wired Wide Area Networks (WANs); and power management products that enable 24x7 reliability in network servers, next generation PCs and information appliances. For more information about Intersil, visit the company's Internet homepage at www.intersil.com.

This press release contains information relating to certain projections and business trends that are forward looking statements as defined in the Private Securities Litigation Reform Act of 1995. Such forward looking statements are based upon management’s current expectations, estimates, beliefs, assumptions, and projections about our business and industry. Words such as "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates," "may," "will" and variations of these words or similar expressions are intended to identify forward looking statements. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances, including any underlying assumptions, are forward looking statements. These forward looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Therefore, our actual results could differ materially and adversely from those expressed in any forward looking statements as a result of various risk factors. Important risk factors that may cause such material differences for Intersil in connection with Wireless LAN IC market include, but are not limited to, the rate at which our present and future customers and end-users adopt Intersil’s wireless technologies and products; the timing, rescheduling or cancellation of significant customer orders; the loss of a key customer; the qualification, availability and pricing of competing products and technologies and the resulting effects on sales and pricing of our products; silicon wafer pricing and the availability of foundry and assembly capacity and raw materials; intellectual property disputes; as well as other risk factors detailed from time to time in Intersil’s filings with the U.S. Securities & Exchange Commission. These forward looking statements are made only as of the date of this press release and Intersil undertakes no obligation to update or revise these forward looking statements.

PRISM is a registered trademark of Intersil Corporation.