Parthus Technologies acquires GSM/GPRS Division from Frontier Design Inc
Melbourne, Florida - June 29, 2000 - Parthus Technologies plc
(Nasdaq: PRTH; LSE: PRH), a leading developer of semiconductor
intellectual property for the mobile-Internet market, today announced that
it has acquired the GSM communication and GPRS wireless division from
Frontier Design Inc, a U.S. company. Through the acquisition of both team
and technology, Parthus intends to license GPRS technology to its global
customer base by the end of 2000, with roadmap plans to launch an EDGE
Platform in mid 2001.
GPRS (General Packet Radio Service) is a packet-based wireless
communication service that delivers enhanced data rates of up to 114
kilobits per second (Kbps), compared to 9.6 Kbps for GSM (Global System
for Mobile Communications), and continuous connection to the Internet for
mobile phone and computer users. EDGE (Enhanced Data Rates for GSM
Evolution) is a further enhancement to GSM and is designed to deliver data
at rates up to 384 Kbps, thereby enabling the delivery of multimedia and
other broadband applications to mobile phone users.
Both GPRS and EDGE (which are sometimes referred to as 2.5G and 3G) are
critical for improving bandwidth of existing GSM networks, and are
critical to the successful deployment to 3G (third generation) cellular.
This technology is an additional fundamental piece of the mobile Internet
jigsaw and complements Parthus' current product range of
Bluetooth™, GPS, smartphone and MP3 platforms.
As both GPRS and EDGE are based on GSM, the most pervasive wireless
communications standard worldwide, implementation does not require
operators to invest in new spectrum licenses. This makes the technology
particularly beneficial to existing operators seeking a way to roll out
wideband services rapidly and cost-efficiently across large areas of
existing networks. With GPRS and EDGE, operators can offer new wireless
data applications for both mobile and computer users, spanning the entire
mobile commerce market including wireless multimedia, e-mail, web
info-tainment and videoconferencing.
As part of the acquisition, Parthus has acquired both GSM/GPRS baseband
technology, and a team of engineers with a high level of experience in
wireless communications. The GSM baseband technology is immediately
available for license, with the GPRS baseband technology anticipated to be
available for license by the end of 2000. This baseband technology
acquired can be deployed into mobile phones, mobile-Internet devices,
laptops and any other device requiring broadband wireless connectivity.
Parthus expects to expand the R&D team in Melbourne, Florida in the
"The growth in demand for Internet access and services has paralleled
the explosion in demand for mobile communications. Our vision for the
mobile-Internet sees consumers having anytime, anywhere access to the
Internet from practically any type of mobile device." said Brian Long,
Chief Executive Officer of Parthus. "We are delighted to be able to
continue to fulfill our strategy for growth through organic development as
well as strategic acquisition. Acquiring the engineering team and GPRS
technology is the third deal we have successfully completed in the past
three quarters. This deal specifically delivers critical mobile Internet
functionality for 2.5G and 3G systems for our global customer base and
strategically expands our portfolio of intellectual property powering the
-- Ends --
Notes to the Editor
GPRS (General Packet Radio Service) is a packet-based
wireless communication service that delivers data rates from 56 up to 114
Kbps and continuous connection to the Internet for mobile phone and
computer users. The higher data rates will allow users to take part in
video conferences and interact with multimedia websites and similar
applications using mobile handheld devices as well as notebook computers.
GPRS is based on the Global System for Mobile communication (GSM) and will
complement existing services such circuit-switched cellular phone
connections and the Short Message Service (SMS).
GPRS will also complement Bluetooth, a standard for
replacing wired connections between devices with wireless radio
connections. In addition to the Internet Protocol (IP), GPRS supports
X.25, a packet-based protocol that is used mainly in Europe. GPRS is an
evolutionary step toward Enhanced Data GSM Environment (EDGE) and
Universal Mobile Telephone Service (UMTS).
EDGE (Enhanced Data Rates for GSM Evolution), a faster
version of the GSM wireless service, is designed to deliver data at rates
up to 384 Kbps and enable the delivery of multimedia and other broadband
applications to mobile phone and computer users. The EDGE standard is
built on the existing GSM standard, using the same time-division multiple
access (TDMA) frame structure and existing cell arrangements.
EDGE is expected to be commercially available in 2001. It is
regarded as an evolutionary standard on the way to Universal Mobile
Telecommunications Service (UMTS).
Spectrum - Wireless communications systems operate in radio
frequency bands (spectrum) that are managed by regulatory bodies in each
country. In the United States, the Federal Communications Commission
regulates and licenses spectrum to operators of cellular and Personal
This press release may contain "forward looking
statements" within The meaning of Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of 1934,
as amended. Any "forward looking statements" in this press release are
subject to certain risks and uncertainties that could cause actual results
to differ materially from those stated. Any statements that are not
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the effect that the Company or its management "believes," "expects,"
"anticipates," "plans" and similar expressions) should be considered
forward-looking statements. Important factors that could cause actual
results to differ from those indicated by such forward-looking statements
include uncertainties relating to the acceptance of semiconductor
intellectual property offerings, expansion of our business, quarterly
variations in results, and other uncertainties that are discussed in the
"Risk Factors" section of our final prospectus dated May 19, 2000, which
is on file with the SEC and of our listing particulars dated May 19, 2000,
filed with the London Stock Exchange and the Registrar of Companies in
England and Wales and the Registrar of Companies in the Republic of