SANTA CLARA, Calif. (April 3, 2002) - 8x8, Inc. (Nasdaq: EGHT) today announced that the company has entered into a strategic relationship with STMicroelectronics to develop Internet protocol-based video solutions. The agreement will enable both companies to accelerate development of low-cost, easy-to-use Internet protocol-based video appliances such as videophones and set-top boxes with video telephony and multimedia streaming applications.
Under the terms of the agreement, 8x8 has licensed from STMicroelectronics the ST VLIW (Very Long Instruction Word) microprocessor cores for use in 8x8's new IP video telephony semiconductor initiative. The resultant technology will also be incorporated into the product portfolio of 8x8's semiconductor subsidiary, Netergy Microelectronics, Inc. (www.netergymicro.com).
"8x8 has profiled current and next-generation video compression algorithms on the ST VLIW core, and we are excited about the capabilities of this technology," said Dr. Barry Andrews, 8x8's chief technology officer. "Many of the video processing functions that previously required dedicated hardware can now be realized very efficiently in software running on the ST core," continued Dr. Andrews.
As part of the relationship, 8x8 has agreed to license to ST certain of its advanced video compression/decompression firmware implementations for use with ST semiconductor products. Furthermore, 8x8 and ST will work together to ensure that future versions of the VLIW cores are optimized for the performance of state-of-the-art video compression and decompression technologies.
"8x8 is well known as a leading supplier of video compression and communication technologies," stated Christos Lagomichos, vice president and general manager of ST's Set-Top Box Division. "The combination of the ST VLIW processor technology with 8x8's video compression technology will enable us to offer our customers high quality, low-cost video telephony technology for their set-top boxes and other consumer equipment."
STMicroelectronics, the world's third largest independent semiconductor company, is a global leader in developing and delivering semiconductor solutions across the spectrum of microelectronics applications. An unrivalled combination of silicon and system expertise, manufacturing strength, Intellectual Property (IP) portfolio and strategic partners positions the Company at the forefront of System-on-Chip (SoC) technology and its products play a key role in enabling today's convergence markets. The Company's shares are traded on the New York Stock Exchange, on Euronext Paris and on the Milan Stock Exchange. In 2001, the Company's net revenues were $6.36 billion and net earnings were $257.1 million. Further information on ST can be found at www.st.com.
About 8x8, Inc.
8x8, Inc. offers consumer videophones and peripherals, telecommunication services, hosted iPBX solutions (through its subsidiary Centile, Inc.), and voice and video semiconductors and related software (through its subsidiary Netergy Microelectronics, Inc.). For more information, visit 8x8's web site at www.8x8.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:
This press release contains forward-looking statements regarding among other things, 8x8's intention to develop an IP telephony semiconductor product based on the technology licensed from ST and that the resulting product will enable companies to accelerate development of low-cost and easy-to-use IP-based video appliances. These forward-looking statements are based on our current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by us. These forward-looking statements speak only as of the date hereof, and are based upon the information available to us at this time. Such information is subject to change, and we will not necessarily inform you of such changes. These statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult to predict. Therefore, our actual results could differ materially and adversely from those expressed or implied in any forward-looking statements as a result of various factors. Such factors include the risk that 8x8's efforts to develop a product based upon the technology licensed from ST may not be completed in a timely manner or at all. Further information on these and other factors that could affect 8x8, Inc.'s actual results are included in 8x8's Report on Form 10-Q for the fiscal quarter ended December 31, 2001 and other Securities and Exchange Commission filings.
Editors: 8x8 is a trademark of 8x8, Inc. All other trademarks are the property of their respective owners.