eMachinesTM Selects PCTEL Modem Riser Solution for Newest eTowerTM PCs

eMachinesTM Selects PCTEL Modem Riser Solution for Newest eTowerTM PCs

January 29, 2001
eMachinesTM Selects PCTEL Modem Riser Solution for Newest eTowerTM PCs Milpitas, CA – January 29, 2001 – PCTEL, Inc. (NASDAQ: PCTI), a leading provider of personal connectivity and Internet access technology, today announced that eMachines, Inc.TM (NASDAQ: EEEE) has selected a modem riser solution based on PCTEL’s HSP 56K MicroModemTM for selected eTowerTM personal computers that will be available beginning in Q1 2001. PCTEL’s compact modem riser solution incorporates patented Host Signal Processing (HSP) technology and enables eMachines to use a tightly integrated design approach to providing eTower PC customers with state-of-the-art communications and Internet capability.

“eMachines and other OEMs are moving toward more highly integrated designs for corporate and personal use PCs,” said Mark Wilson, vice president of marketing for PCTEL. “This allows them to provide more features with less board space – and PCTEL’s modem riser solutions are playing key roles in that evolution.”

"eMachines is dedicated to delivering a high value, low-cost computing experience to a broad consumer audience,” said Stephen Dukker, president and CEO of eMachines, Inc. “Because PCTEL’s modem riser solution requires less hardware than a traditional modem, it can reduce manufacturing costs without sacrificing the reliability that consumers have come to expect from our products.”

Amy Helland, analyst for Cahners In-Stat Group, noted that software-based modems are enjoying wider acceptance with manufacturers. “Soft-modem pioneer PCTEL and others are continuing to make inroads in the overall analog market by offering OEMs a more cost-effective way to provide reliable Internet connectivity,” she said. “We believe soft-modems will capture approximately 47 percent of the PC analog modem market by the end of 2001 – and eMachines’ choice of PCTEL’s design is an indication that we’re on track with our projections.”


PCTEL, founded in March 1994, is driving the evolution of innovative, cost-effective personal connectivity solutions including analog soft modems, digital broadband, home networking, high-density carrier-side and embedded Internet access technology. The company’s market leadership has led to a wide ranging and comprehensive portfolio of more than 43 broadband and analog communications patents, including the key and essential patents for HSP modem technology. PCTEL products are available to PC and data communications equipment manufacturers, as well as a variety of vertical market OEMs. PCTEL is located at 1331 California Circle, Milpitas, Calif., 95035. Telephone: (408) 965-2100. Fax: (408) 895-0178. For more information on PCTEL products, visit the PCTEL website at http://www.pctel.com.

PCTEL Safe Harbor Statement
This press release contains statements relating to future analog modem products of the company that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected as a result of certain risks and uncertainties. These risks and uncertainties include, but are not limited to; the cyclical nature of the semiconductor industry and the markets addressed by the company's and its customers' products; demand for and market acceptance of new products; the ability to develop and implement new technologies and to obtain protection for the related intellectual property; as well as other risks and uncertainties, including but not limited to those detailed from time to time in the company's Securities and Exchange Commission filings. These forward-looking statements are made only as of the date hereof, and the company disclaims any obligation to update or revise the information contained in any forward-looking statements, whether as a result of new information, future events or otherwise.

eMachines Safe Harbor Statement
This press release contains forward-looking statements relating to future events and results that are based on eMachines, Inc.’s current expectations. These statements relate to the outlook and prospects for eMachines and the markets in which it operates. These statements involve risks and uncertainties including, without limitation, the level of demand for eMachines’ products and services, eMachines’ and its suppliers’ ability to timely develop, deliver, and support new and existing products and services, eMachines’ ability to manage inventory, the cost and availability of key product components, eMachines’ ability to successfully develop and market its Internet-based services, consumer and advertiser acceptance of such services, competitive pressures relating to price reductions, new product introductions by third parties, technological innovations, and overall market conditions, including demand for computers, Internet access devices and Internet services. Consequently, actual events and results in future periods may differ materially from those currently expected. Additional information regarding the factors that may affect eMachines’ future performance is included in the public reports that eMachines files with the Securities and Exchange Commission.

HSP56 Modem, HSP Modem, HSP Speakerphone are trademarks of PC-TEL. eMachines and eTower are trademarks of eMachines, Inc. Intel is a trademark of Intel Corp. All other trademarks are the property of their respective owners.