CYGNUS Communications, Inc. Completes Acquisition of SiWorks, Inc.

Demonstrates IEEE-802.16d Software Defined Radio at SuperComm 2005

Carlsbad, California -- June 2, 2005 -- CYGNUS Communications, Inc., a privately held fabless semiconductor company headquartered in Carlsbad, California, today announced that it has completed the acquisition of SiWorks, Inc., a leading provider of Wireless Semiconductor Intellectual Property (WSIP) for IEEE-802.16d, UWB-MBOA, and IEEE-802.11a/b/g products, located in Calgary, Alberta, Canada. CYGNUS did not disclose the terms of the transaction. SiWorks has been renamed CYGNUS Communications Canada Co.

SiWorks' Software Defined Radio Technology, which is currently being integrated into several broadband wireless access designs, enables base-station and subscriber station OEMs to rapidly bring IEEE-802.16d compliant products to market. The SDR IP supports all the WiMAX Forum T specified channel bandwidths and data rates with a flexible RF interface to support either baseband I/Q or IF interfaces for digital up/down conversion. The IP is optimized and partitioned to run on Analog Devices' (ADI) TigerSHARC® Processor and low-cost FPGAs. ADI will demonstrate the SDR OFDM-256 modem at SuperComm 2005, booth number 36015.

"SiWorks IEEE-802.16d compliant SDR is a perfect complement to the CYGNUS Communications ASIC development effort in support of WiMAXT compliant Fixed and Mobile Wireless Metropolitan Area Networks," said Kenneth Stanwood, CYGNUS Communications, Inc. President and CEO. "The acquisition of SiWorks accelerates our entry into the huge IEEE-802.16e market, and we're leveraging the success of the IEEE-802.16d development to be the first to introduce 802.16e compliant ASIC products.

"We are very excited to join a world-class wireless 802.16 semiconductor company such as CYGNUS," said Roger Bertschmann, SiWorks President and CEO. "The acquisition will allow CYGNUS to leverage SiWorks' silicon and DSP IP for WiMax applications and accelerate its time to market."

About CYGNUS Communications, Inc. Founded in 2004 in Carlsbad, CA, CYGNUS Communications is a privately held fabless semiconductor company that is developing ASICs and software based upon the IEEE-802.16 Air Interface Standard to enable cost-effective multimedia wireless networking solutions for both fixed and mobile applications in wireless in-home local area networks and wireless metropolitan area networks with additional applications for homeland security, public safety, and military communications.

CYGNUS is founded and staffed by industry experts who held key positions at several leading wireless system manufacturers, and are long-time contributors to the global broadband wireless access standards organizations - IEEE-802.16, ETSI HiperMAN™, and WiMAX Forum™.

About SiWorks, Inc.
SiWorks was founded in 1998, and is a leading supplier of wireless semiconductor intellectual property (WSIP) solutions for new and emerging wireless communication standards. SiWorks' WSIP solutions and integrated circuit designs are being used by semiconductor companies and wireless original equipment manufacturers (OEMs) worldwide. WSIP cores include IEEE 802.16 (WiMAX Forum™), IEEE 802.15.3a (UWB-MBOA SIG) and IEEE 802.11a/b/g (WiFi™).

For more information, please visit www.cygnuscom.com.