PCTEL Receives First DSL Patent Award

PCTEL Receives First DSL Patent Award

June 18, 2001
PCTEL Receives First DSL Patent Award Milpitas, California – June 18, 2001 – PCTEL, Inc. (NASDAQ: PCTI), a leading provider of personal connectivity and Internet access technology, today announced it was awarded a significant DSL patent by the U.S. Patent Office. Titled "Method and Apparatus for Data Transmission Using Discrete Multitone Technology," this technology has the potential to improve DSL modem speeds, depending on the line conditions, by ten to twenty percent over current full-rate DMT implementations.

“This is the first of many advanced digital communications patents that we are targeting to receive going forward,” said William Roach, president and CEO of PCTEL, Inc. “Even in these tough economic times, PCTEL’s commitment to research and development remains unshaken. PCTEL has always considered it imperative not only to develop innovative new products, but also to extend our portfolio of essential patents to advance the entire Internet communications market.” Today, PCTEL has 72 patents either granted or pending. Many of these patents are essential in the modem and soft modem businesses. The company remains committed to expanding its intellectual capital portfolio in such areas as broadband and wireless communications to further its success in the telecommunications industry.

The first major PCTEL DSL product, named LiteSpeedTM, became available for bundling in new PCs in the fall of 2000. LiteSpeed is the industry’s first single-chip combination ADSL / V.90 modem solution. This pre-installed DSL modem enables connections up to 1.5 megabits per second, a 27 times improvement over the fastest analog modem. PCTEL’s LiteSpeed is a key advancement toward making mass-market deployment of DSL a reality.

GartnerGroup, a market research firm based in Stamford, Connecticut, estimates that there were 1.97 million DSL subscribers in the U.S. in 2000. They predict that this number could increase to 12.2 million by 2004. Cahners In-Stat estimated that there were 4.9 million DSL users worldwide by the end of 2000. Korea, Japan and China have emerged as strong growth markets in the last eighteen months.


PCTEL, founded in March 1994, is driving the evolution of innovative, cost-effective personal connectivity solutions including analog soft modems, digital broadband, home networking and embedded Internet access technology. The company is a market leader and has a wide-ranging and comprehensive portfolio of more than 44 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, California, 95035. Telephone: (408) 965-2100. Fax: (408) 895-0178. For more information on PCTEL products, visit the PCTEL website at http://www.pctel.com.

Safe Harbor Statement
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Exchange Act of 1934, as amended. These forward-looking statements are subject to significant risks and uncertainties. In particular, the statements concerning future patent awards and innovative DSL products are forward-looking statements. 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 recent economic slowdown, the rapid deterioration in PC demand; the cyclical nature of the semiconductor and PC industries; demand and installation of DSL services; demand for and market acceptance of new alternative Internet access devices, set-top boxes, game consoles and other connected appliances; the ability to develop and implement new technologies and to obtain protection for the related intellectual property. Operating and financial results can be affected by market conditions resulting in revenues deviating from projections which may result in increased operating expenses, additions to reserve positions, lower gross margins, higher working capital ratios. These 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 can affect results. 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.

PCTEL and the PCTEL logo are trademarks of PCTEL, Inc. All other company and product names are trademarks of their respective holders.