ZyXEL Communications Selects Texas Instruments Voice over IP Solutions for Next-Generation Access Devices and IP Phones

DALLAS (August 30, 2006) -- Texas Instruments Incorporated (TI) (NYSE:TXN) announced today that ZyXEL Communications Corp. (TSE:2391), the world's largest residential gateway provider, has chosen TI's Voice over Internet Protocol (VoIP) products for its voice-enabled DSL access devices, VoIP gateways and IP phones. TI's complete, integrated customer premises equipment (CPE) silicon and software solutions are optimized for solution density, and incorporate TI's programmable digital signal processor (DSP)-based series of access communications processors and field-proven Telogy Software(TM) for VoIP. The first IP phones with TI's chipset, V501D-T1 and V300, will be available at CeBIT 2007. Prior to that, ZyXEL will roll out its high-port density VoIP gateway, P2024.

"TI's VoIP solutions are at the heart of ZyXEL's next-generation voice enabled CPE and IP phone products," said Dr. Albert Ju, assistant vice president, Telco/VoIP product line, ZyXEL Communications. "TI's technological skill, system stability and proven track record in VoIP software and silicon for customer premises equipment made them the clear choice for our newest VoIP devices. Together, ZyXEL and TI are partnering to offer customers the highest quality and most advanced and VoIP premise products in the market."

The selection of TI's TNETV24xx and TNETV25xx series of VoIP gateway technology will enable ZyXEL to deliver high-performance voice processing and new feature-rich access products to market rapidly and efficiently across a broad range of CPE devices. TI's VoIP gateway product suite combines hardware and software-based functionality on an optimized architecture and co-defined features for a broad range of voice over packet applications. TI's TNETV105x family offers ZyXEL a highly integrated IP phone solution and comprehensive feature set with one of the industry's most robust acoustic echo cancellers. Using TI's flexible silicon and software architecture, ZyXEL can also develop add-on functionality into its IP phones as the demand for a particular feature or application emerges down the road.

"We have been working very closely with ZyXEL and their decision to use TI's VoIP solution for their next generation CPE devices and IP phones was truly driven by the strategic partnership that exists between our two companies," said Fred Zimmerman, executive director, VoIP CPE products, TI's communications infrastructure and voice business. "Leveraging our experience, field-proven VoIP software and complete portfolio of integrated solutions, we're working closely with ZyXEL to simplify the process by which customers utilize Voice over IP services in their businesses and homes."

About Texas Instruments
Texas Instruments Incorporated provides innovative DSP and analog technologies to meet our customers' real world signal processing requirements. In addition to Semiconductor, the company includes the Educational & Productivity Solutions business. TI is headquartered in Dallas, Texas, and has manufacturing, design or sales operations in more than 25 countries.

Texas Instruments is traded on the New York Stock Exchange under the symbol TXN. More information is located on the World Wide Web at www.ti.com.

About ZyXEL Communications
ZyXEL Communications Corp. (TSE:2391), headquartered in Hsinchu, Taiwan, is the world's largest residential gateway provider (In-Stat, 2006). ZyXEL's broad line of Internet Protocol-based (IP) networking solutions include access multiplexors, customer premise equipment, Internet security and Wireless LAN equipment, enabling high-performance network services for SOHO, small to mid-sized businesses and service providers. ZyXEL works closely with worldwide network equipment vendors, telecommunications companies, ISPs, and other major businesses. For more information, visit the company's Website at www.zyxel.com

Media contacts:

Deborah Shemony,
Texas Instruments

Erin Arnold,

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