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Magnolia Broadband Achieves Performance Breakthrough with DiversityPlus™ Technology for Cell Phones

New Radio Chip to Extend Cell Phone Battery Life, Improve Coverage and Double Capacity of Existing Networks

CLINTON, N.J. – (May 12, 2003) – Magnolia Broadband, Inc., a fab-less semiconductor company and innovator of radio frequency (RF) solutions for the cellular industry, today announced DiversityPlus™, a technology platform designed to exploit antenna diversity architectures in mobile terminals. With this breakthrough, Magnolia is the first to improve both transmission and reception capabilities in mobile terminals using dual antenna inputs and outputs to create more robust signals through its diversity algorithm processing. Cell phones powered by DiversityPlus™ will have longer battery life and enable carriers to improve coverage and data through-put, as well as serve twice as many subscribers with the same infrastructure.

DiversityPlus™ RF products are based on the company’s proprietary algorithms and RF integrated circuit (RFIC) designs. The first products for CDMA handsets will ship in sample quantities in Q4 this year. Magnolia has also partnered with major semiconductor industry leaders to support the CDMA mobile terminal suppliers and to deliver high quality products in volume.

“The wireless industry has been facing vexing issues such as coverage, network capacity and short battery life for a long time”, said Magnolia CEO, Haim Harel. “Magnolia is creating a quantum leap for the wireless industry by enabling service providers to deliver needed improvements in quality of service to their customers on an individual basis.”

“Our tests of Magnolia’s DiversityPlus™ solution with two of the world’s largest CDMA service providers have been well received”, said John H. Moon, SVP Corporate Development. “Magnolia’s application of antenna diversity in the handset will deliver a unique solution in addressing the service provider’s needs.”

DiversityPlus™ technology in the mobile terminal does not require any change to the service provider’s network or to the wireless standards. Also, implementation of Diversity Plus will provide substantial savings to the carrier relative to expensive networks and can be phased in as demand grows. “With the growing use of antenna diversity technologies in cellular base stations, the industry has a greater appreciation of the benefits that now can be derived from diversity enabled handsets”, according to Haim Harel.

Over the next 6 months, Magnolia will be conducting its second phase of field trials with wireless service providers. The company is also aggressively working to deliver engineering prototypes of its DiversityPlus™ chipsets and expects to announce supply agreements with mobile terminal manufacturers to integrate the chipsets in commercial handsets in the near future.

About Magnolia Broadband

Magnolia is an innovative developer of semiconductors for the wireless industry and the first company to provide diversity antenna technology using unique RF chipset products that incorporate both transmit and receive diversity. By using a unique RF (Radio Frequency) chipset carriers can serve more subscribers within the same wireless infrastructure while improving coverage, data rates and battery performance.

Since its inception in late 2000, Magnolia has raised $9 million in capital from notable investors like Draper Fisher Jurvetson Gotham, ECentury Capital Partners, SCP Private Equity Partners, Selway Partners and Silverstar Holdings. Magnolia has filed numerous patents related to its core technology and partnered with semiconductor industry notables as Jazz Semiconductor, and Amkor Technology for their manufacturing and production services. For more information, go to www.magnoliabroadband.com.

Magnolia Contact information

Joseph Dans
Director of Accounts
Fusion Public Relations
570 Seventh Avenue
NY, NY 10018
(212) 651-4215

John H. Moon
Senior Vice President, Corporate Development
Magnolia Broadband, Inc.
64 Old Highway 22, 3rd Floor
Clinton, New Jersey 08809



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