TTPCom announces blueprint for $20 ULC cellular handset

Cambridge, UK, 6 February 2006 - TTP Communications plc. [LSE: TTC] today announces that its subsidiary TTPCom Limited (TTPCom) has developed a complete reference design to address the growing Ultra Low Cost (ULC) handset market segment. The design, which includes TTPCom’s AJAR ULC application suite, protocol software and baseband chipset engine, will enable handset manufacturers and semiconductor vendors to deliver the sub-$20 ex-factory handset that the industry now sees as a key milestone in serving the next one billion mobile phone customers.

Successfully meeting the aggressive cost targets for the Ultra Low Cost Handset (ULCH) market requires a tightly specified product based on a fully integrated system design which allows an optimised hardware/software balance. Unique in its position as a provider of mobile handset intellectual property from antenna to applications, TTPCom now brings the benefits of its mature technology to this market. Further technology innovation has resulted in a step change in the handset cost. TTPCom has developed a fully costed bill of materials (BoM) based on the reference design, utilising TTPCom’s technology, which also includes all other handset parts including battery, display and casing to deliver a ULCH design below the $20 barrier.

“Every TTPCom product is designed in the context of the whole system,” comments Tony Milbourn, TTPCom’s managing director. “This approach allows us to extract the maximum possible functionality out of each individual function in relation to the others and to innovate in terms of understanding the trade-offs in the components and design. We can help handset manufactures deliver a sub-$20 device. In fact, with the right partners, we believe we can reduce costs even further.”

TTPCom’s modular approach to design has enabled the removal of any non-essential functionality to deliver proven technology optimised for the ULC market with particular focus on three key elements:

* TTPCom AJAR ULC – a small memory footprint version of TTPCom AJAR Platform – the definitive mobile applications suite. AJAR ULC provides an intelligent framework, user interface toolset and all the software required for the ultra low cost market in a format that is easy to adapt and integrate. AJAR ULC saves more than 500KB of memory over a comparable application layer.

* Optimised 2G protocol stack - every year, TTPCom’s GSM/GPRS protocol stack is employed in millions of handset products on multiple networks around the world. This maturity in addition to its very small memory footprint combine to deliver a robust solution for use in ULC handsets.

* TTPCom CBEmacro 2G ULC - this modem technology includes all the required processors, peripherals, communications hardware and external interfaces, delivered as a silicon intellectual property (IP) core. Gate counts and memory footprint are optimised for ULCH products and its target size of 10mm squared or less in 0.13u is extremely competitive.

With this ULCH design, TTPCom is now actively engaging with semiconductor manufacturers and handset manufacturers as key partners in bringing the next step-change in cost reduction for the ULCH market.

Notes to editors

About the Ultra Low Cost market

Only 25 per cent of those that live within range of a cellular network actually subscribe to a mobile phone service – the remainder represents over three billion potential customers. As many of these are in the world’s emerging markets, the challenge for handset manufacturers is to deliver reliable mobile phones at an affordable price – the GSM Association has set a target of less than US$30 to address this market. Unlike the replacement handset market, which focuses on bringing more and more features into devices and relies on lifecycle economies of scale to reduce the price, the ULC market requires an essentially constant set of features, in return for technology innovation to deliver core technology at lower and lower cost.

AJAR ULC includes:

Black and white LCD support, voice telephony codecs (HR, FR, EFR, AMR-NB), SMS/EMS, SIM toolkit, SIM lock, MIDI ringtones, graphic images (GIF), phonebook, calculator, Standard Supplementary Services such as call divert and caller identification, optional predictive text, language packs.

TTPCom CBEmacro 2G ULC includes

CBEmacro 2G ULC is based on the successful CBEmacro 2G with all of the additional hardware and software features not required for the ULCH segment removed. It supports multi-band GSM through a DigRF interface and when combined with AJAR ULC results in a highly system memory efficient product.

About TTPCom

With 10 offices and development centres around the world, TTPCom Ltd. is the principal operating subsidiary of TTP Communications plc (LSE: TTC). The company develops intellectual property used in the design and manufacture of wireless communication terminals. TTPCom licenses its technology to leading semiconductor and terminal manufacturers worldwide, including Analog Devices, Intel, LG, NEC, Renesas, Sharp and Siemens.

TTPCom has established a world leading position with its GPRS, EDGE and 3G protocol software; offers rapid customisation of handsets through the AJAR Platform applications framework; and develops both radio and baseband cellular engines through its Macro products. More than 150 million devices using TTPCom technology have been shipped worldwide. More information can be found on TTPCom's website at: http://www.ttpcom.com.