Mindspeed(R) and Terawave Collaborate to Develop Single-Chip GPON Solution for Optical Network Terminals.

Full Reference Design Available Immediately Featuring Mindspeed's Comcerto[TM] Series Processor and Terawave's Media Access Controller with Complete Software Support

NEWPORT BEACH, Calif. -- Mindspeed Technologies, Inc. (NASDAQ:MSPD), a leading supplier of semiconductor solutions for network infrastructure applications, and Terawave Communications, a leading global manufacturer of passive optical network (PON) access solutions, today announced that the two companies are collaborating on the development of a complete system-on-chip (SoC) solution for gigabit PON (GPON) optical network terminals (ONTs).

The performance of the new GPON SoC device will support both fiber-to-the-home and fiber-to-the-curb for multi-dwelling unit deployments; and enable the delivery of next-generation broadband applications such as video-on-demand and IPTV, rate-controlled Internet access at speeds up to 100 Mbps, as well as traditional voice-over-IP (VoIP).

The two companies are also immediately offering a full ONT system reference design including complete software and packaging.

"The deployment of fiber networks will accelerate worldwide over the next several years as service providers in North America and Europe follow Japan's lead," said Jeff Heynen of Infonetics, a market research firm. "Mindspeed and Terawave have the IP blocks and components required to deliver a high-performance and cost-effective SoC solution as deployment of ONTs ramp on a global scale."

"This joint development program between our two companies will result in a fully integrated, best-in-class GPON SoC solution and builds on our VoIP and high-performance analog expertise to extend Mindspeed's position in the rapidly expanding PON market," said Raouf Halim, chief executive officer of Mindspeed.

"Combining Terawave's long track record of success in delivering PON systems and components with Mindspeed's leadership voice processing and SoC integration capabilities will enable us to deliver the highest performance, most cost-effective and flexible solution for ONT manufacturers," said Ray Lin, chief executive officer of Terawave.

The new GPON SoC solution will integrate Terawave's high-performance GPON media access controller (MAC), a high-bandwidth L2 Ethernet switch, and Mindspeed's carrier class low-latency voice subsystem. The device will be partitioned to provide maximum system design flexibility and enable ONT manufactures to speed time to market at the lowest possible cost.

The SoC device will integrate an industry-standard ITU-T G.984.3 GPON MAC operating at 2488/1244 Mbps downstream/upstream, supporting G.984.4 GPON encapsulation method (GEM) with DBA, AES and FEC. Application and media stream processing will be performed by a high-performance ARM 11 operating at 450 MHz. The devices will offer two high-speed VLAN-capable L2 Ethernet switch ports with 802.11p and DSCP/Diffserv quality of service (QoS).

SoC samples are expected to be available in the fourth calendar quarter of 2007. The reference design is available immediately and includes all hardware and software necessary for ONT development.

About Mindspeed Technologies[R]

Mindspeed Technologies, Inc. designs, develops and sells semiconductor networking solutions for communications applications in enterprise, access, metropolitan and wide area networks.

The company's three key product families include high-performance analog transmission and switching solutions, multiservice access products designed to support voice and data services across wireline and wireless networks, and WAN communications solutions including T/E carrier physical-layer and link-layer devices as well as ATM/MPLS network processors.

Mindspeed's products are used in a wide variety of network infrastructure equipment, including voice and media gateways, high-speed routers, switches, access multiplexers, cross-connect systems, add-drop multiplexers and digital loop carrier equipment.

To learn more, visit us at www.mindspeed.com.

About Terawave Communications

Terawave Communications is a leading, global manufacturer of passive optical network (PON) access solutions for telecom and cable service providers, government and municipal customers. Terawave is Fujitsu's UK sole supplier of GPON equipment for British Telecom's 21C Network. Terawave GPON products converge carrier-class business services and Triple Play residential services over a leading-edge next generation network, providing unparalleled service quality, scalability, reliability and management.

Terawave has over 90 PON customers on five continents.

To learn more, visit the company at www.terawave.com.

Safe Harbor Statement

This press release contains statements relating to Mindspeed, and our future results, including certain projections and business trends, that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Actual results, and actual events that occur, may differ materially from those projected as a result of certain risks and uncertainties. These risks and uncertainties include, but are not limited to: market demand for our new and existing products and our ability to increase our revenues; our ability to maintain operating expenses within anticipated levels; our ability to reduce our cash consumption; availability and terms of capital needed for our business; constraints in the supply of wafers and other product components from our third-party manufacturers; our ability to successfully and cost effectively establish and manage operations in jurisdictions with low cost structures; the ability to attract and retain qualified personnel; successful development and introduction of new products; our ability to obtain design wins and develop revenues from them; pricing pressures and other competitive factors; order and shipment uncertainty; changes in our customers' inventory levels and inventory management practices; fluctuations in manufacturing yields; product defects; and intellectual property infringement claims by others and the ability to protect our intellectual property, as well as other risks and uncertainties, including those detailed from time to time in our Securities and Exchange Commission filings.