TrendChip Technologies Supports Billion Electric in Patent Litigation Against Lantiq

By Trendchip Technologies, PRNE
Tuesday, March 23, 2010

HSINCHU, Taiwan, March 24, 2010 - xDSL CPE chipset leader TrendChip Technologies released an official
statement on March 23 to state that it totally disagrees with the
infringement complaint filed by Lantiq in Germany against Billion Electric
for the alleged infringement of its patent rights by using TrendChip's
chipset, and it will fully assist Billion Electric in fighting against Lantiq
in order to protect its customers' and its own interests.

A few days ago, German communications chip maker Lantiq filed a complaint
in a local district court against Billion Electric for infringing on the
company's patent rights. It alleged that some of Billion Electric's
ADSL2/ADSL2 + modem products are violating the intellectual property rights
of the company because they are using TrendChip's communication chipsets.

TrendChip said that the patent that has been infringed upon, as alleged
by Lantiq, is not the one originally applied for by the company. Instead, it
was bought from another company, and also that its predecessor, Infineon, had
already made a claim as early as two years ago. A comprehensive professional
analysis conducted by lawyers and patent experts engaged by TrendChip have
concluded that there have been no infringements. A copy of the analysis
report, together with other information, such as those expressing doubts with
regard to the validity of the patent was sent to Infineon. However, Infineon
could not make a strong rebuttal. Today, Lantiq has filed legal proceedings
against one of TrendChip's customers with the same patent. Deemed an attempt
to interfere with the mechanism of free market competition, TrendChip totally
disagrees with their actions. TrendChip will take the same stance with its
customers and use all available legal resources to safeguard its customers'
and its own interests, including such actions as applying for revocation of
the said patent rights.

TrendChip believes that the most favourable direction for the development
of the industry and its customers is to continually provide customers with
competitive products and services. It further stresses that the company has
always been focusing on the research and development of ADSL chips since its
establishment. It has great respect for protecting intellectual property
rights and safeguarding patent rights, and going forward it will continue to
pit itself against the fierce competition in the industry with its complete
solution business model and proprietary product innovations.

About TrendChip Technologies

Established in 2001 and with a paid-up capital of NT 368 million,
TrendChip (Stock code: 3614) is a leading maker focused on the design of
broadband access chipsets. It boasts world-class R&D, technical support and
sales teams for broadband communications. TrendChip's most cost-effective
ADSL chipsets and complete communication software are being used widely by
its world-class telecommunications customers. With its annual shipment
achieving a substantial growth of more than 60% in 2009, its market share now
exceeds 20%.

On March 11, the merger between Ralink Technology and TrendChip was
approved by their respective Board of Directors' Meeting. After the merger,
Ralink Technology will be the company to remain in existence. Also set up in
2001, Ralink Technology was the first wireless network IC design company in
Taiwan. After the merger, their combined revenue in 2009 exceeded NT 7.3
billion, ranking it in the top 30 among the IC design companies around the
world.

    For more information, please contact:

     TrendChip Technologies
     Spokesperson: Alex Fan
     Tel:   +886-3-666-8066
     Email: alexandra_fan@trendchip.com.tw

Spokesperson: Alex Fan of TrendChip Technologies, +886-3-666-8066, or alexandra_fan at trendchip.com.tw

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