Micrel and Arcturus Deliver Industry Leading ARM-based RG Solution

Micrel's KS8695 family and Arcturus software address the need for robust and extensible solutions in digital home and office devices

San Jose, Calif., - (April 12, 2004) - Micrel Semiconductor (Nasdaq: MCRL), an industry leader in analog and power management integrated circuits and Arcturus Networks Inc. today announced best-in-class Residential Gateway solutions based on the Micrel KS8695 family of innovative ARM-based Network Processors. Micrel and Arcturus have developed a complete turnkey reference system to reduce time-to-market for OEMs developing RG, SOHO and WLAN devices.

Built around Micrel's ARM922T-based KS8965 family with an integrated 5-port Ethernet switch, the system vastly reduces the development cycle for OEMs by providing take-to-market hardware and software. The solution is targeted at a range of applications, from the development of CPE class devices like simple LAN/WAN routers, to sophisticated multi-port VPN, VLAN and secure wireless access points. The high performance 166MHz Micrel device is Linux enabled and includes RG firmware and demonstration versions of Arcturus MIBflex™ plug-in based device management framework and sentryVPN™ secure networking software.

"The problem with most of today's WLAN SoC solutions is that they don't offer the flexibility needed to address the rapidly changing needs of the SOHO and small business environments. Designing with Micrel's KS8695 family and Arcturus Networks software allows customers to meet those needs while accelerating time to market and giving the customer the confidence that their platform is based on field proven hardware and software," said Dr. Jung-Chen Lin, Vice President of Micrel's Ethernet Group.

The KS8695 family includes the KS8695X, KS8695, KS8695PX, and the KS8695P. The base KS8695X platform features an integrated ARM9 core and 5-port Ethernet switch with built in MACs and PHYs which serves as the intelligence and connectivity at the heart of an embedded networking device. The KS8695 adds an external MAC interface to support alternative PHY interfaces such as HomePlug or HPNA 2.0. The KS8695PX adds a PCI interface, which supports a single external PCI device for WLAN applications. Partitioning the device at the PCI interface gives the designer the option to take advantage of the latest WLAN chipset technology or the lowest cost chipset with the same PCB design. The KS8695P can support up to 3 PCI devices for applications beyond the router such as multimedia and storage; utilizing a standards-based PCI interface enables the customer the flexibility to quickly add new differentiating functions to their base residential gateway. Arcturus Networks management and security software functionality adds another opportunity for customers to differentiate their products.

"The industry is only starting to realize the profound need for highly manageable network appliances," said Rich Larsen, Arcturus COO. "OEMs need to reduce support burdens and installation headaches, while service providers need to retain control over their devices and networks. Our software, combined with Micrel's hardware, enables the development of a broad range of highly manageable, integrated devices that can be brought to market extremely fast."

Pricing and Availability

KS8695 family evaluation kits are shipping now featuring Arcturus Networks' Residential Gateway software and demonstration versions of MIBflex™ and sentryVPN™.

About Arcturus RG

Arcturus builds its RG solutions from the ground up around a highly extensible management infrastructure called MIBflex™. MIBflex is a plug-in management architecture that enables full read-write access to virtually every control point of a networked device. Into this architecture Arcturus can plug any other of its' Firmware Suites and any number of front-end interfaces such as web UIs, SNMP or Automated Voice Response. The nature of this architecture ensures scalability and flexibility not achievable through other solutions. Additional RG firmware suites include sentryVPN, AIRmarshal secure wireless and SIPstream voice and media. Arcturus partners directly with semiconductor vendors to provide RG software and hardware solutions with various combinations of broadband access, wireless access, device management, security, VPN, media and voice.

About Arcturus Networks Inc.

Arcturus Networks Inc. provides complete Residential Gateway product solutions to enable OEMs, ODMs and chip vendors to bring product to market fast. Arcturus firmware suites are modular, portable and include MIBflex management, sentryVPN security, SIPstream voice and AIRmarshal wireless. Arcturus partners with silicon vendors to design market-ready hardware and software reference solutions that showcase the vendors' product and reduce time-to-market and risk for their customers. Arcturus is the creator and innovator of uClinux, the industry standard embedded operating system for microcontrollers. Learn more by visiting www.arcturusnetworks.com.

About Micrel

Micrel Semiconductor is a leading manufacturer of advanced, high performance communications, clock management, mixed signal, analog, power as well as Ethernet router, switch and physical layer transceiver ICs. These products include devices for fiber optic telecommunications and networking, cellular telephones, servers, portable computer systems, computer peripherals, process control systems, consumer electronics and power supplies.