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Entropic Communications, Zenverge to Enable TV and Movies On Any Screen

Integration of Market Leading Transcoding and MoCA 2.0 Silicon Technologies to Deliver Video on Any Device

SAN DIEGO, September 26, 2011— Entropic Communications, Inc. (Nasdaq: ENTR), a leading provider of silicon and software solutions to enable connected home entertainment and Zenverge, Inc., a leading developer of advanced media integrated circuits (ICs) for the connected home, today announced a strategic partnership to co-develop solutions and align product roadmaps for the delivery of content with powerful transcoding technology over a MoCA® 2.0 (Multimedia over Coax) home network. In addition, Entropic has made an investment in Zenverge totaling 10 million dollars (USD).

Service providers are seeking cost-effective ways to broaden delivery of video content beyond TVs, to portable display devices like tablets, smartphones, and laptops. Building on the partnership between the two companies announced earlier this year, a combined Entropic-Zenverge solution will enable service providers to leverage their investment in MoCA networks and the paradigm shift to IP content, to significantly expand the number and types of display devices on which their subscribers can consume content, while maintaining superior quality, security and market leading MoCA home network connectivity. With faster than real-time high definition (HD) transcoding from Zenverge and unsurpassed MoCA 2.0 performance from Entropic, pay-TV, over-the-top or personal video content can be streamed from a DVR, a network attached storage (NAS) device, or a personal computer (PC) and converted to a format most suitable for viewing on tablets, smartphones, or laptops. This content can either be watched immediately in a connected mode, or later from content stored locally.

The product roadmap alignment between the companies integrates the following features and attributes of each company to ensure a superb, seamless content viewing experience throughout the home and on any device:

  • Zenverge’s Entertainment Nexus (ZEN) advanced architecture for HD media processing. This powerful architecture results in a high-performance, low-latency, lower power digital media processor capable of transcoding HD content up to four-times faster than real-time, and up to 30-times faster for lower-resolution content. In addition, the Zenverge media processor can simultaneously transcode up to four independent HD streams, or up to 16 independent standard definition (SD) streams, along with supporting full encode of HD content.
     
  • Entropic’s MoCA 2.0 home networking silicon. Entropic brings proven speed and performance with its MoCA silicon and software. Enabling the most robust, predictable and powerful home networking backbone to reliably distribute bandwidth-intensive content throughout the home. With MoCA 1.1 already deployed as the de-facto connected home entertainment standard in the U.S., MoCA 2.0’s higher throughput and backward interoperability is perfectly suited to intersect pay-TV provider next generation products and services.

“We’re at a critical path in both our development and what the consumer market desires in their home entertainment interests,” said Amir Mobini, chief executive officer, Zenverge. “By aligning our paths with Entropic, and maximizing the opportunity their MoCA 2.0 technology brings to the table, we will remain on target to deliver the most groundbreaking new architecture for digital HD convergence – that takes transcoding of digital media entertainment to unsurpassed levels of consumer and operator ease.”

“This partnership crystallizes our connected home entertainment strategy and positions us to offer even greater value to our customers, our partners and ultimately the consumer,” said Patrick Henry, president and chief executive officer, Entropic. “In addition to the clear strategic benefits of combining two highly complementary silicon products, we believe we can create substantial shareholder value by capitalizing on the consumer demand to have their video content delivered anywhere, anytime and to any device, in the home or on the go.”

About Zenverge
Founded in 2005, Zenverge is a fabless semiconductor company devoted to accelerating consumer access to next generation digital content and services. The company is a leading developer of Advanced Media ICs built around the patented ZEN architecture, a core technology for next generation digital media devices. The company is based in Cupertino, California. For more information please visit the company website: www.zenverge.com.

About Entropic Communications
Entropic Communications, Inc. (NASDAQ:ENTR) is a leading fabless semiconductor company that is engineering the future of connected home networking and entertainment by providing next-generation silicon and software technologies to the world's leading cable, telco and satellite service providers, OEMs and consumer electronics manufacturers. As a co-founder of MoCA (Multimedia over Coax Alliance), Entropic pioneered and continues to evolve the way high-definition television-quality video and other multimedia and digital content such as movies, music, games and photos are brought into and delivered throughout the home. For more information, visit Entropic at www.entropic.com.

Forward-Looking Statements
Statements in this press release that are not strictly historical in nature constitute "forward-looking statements." Such statements include, but are not limited to, statements regarding Entropic's leadership in providing MoCA enabled technology, and continued or future integration of Entropic’s technology into products of OEMs, and statements regarding Zenverge’s leadership in delivering transcoding technologies in conjunction with Entropic products or in any of the applications or markets mentioned herein, and statements regarding the anticipated benefits from the collaboration between Entropic and Zenverge. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause Entropic's and/or Zenverge’s actual results to be materially different from historical results or from any results expressed or implied by such forward-looking statements. These factors include, but are not limited to, the success of the collaboration between Entropic and Zenverge, which will depend, in part, on each company continuing to devote sufficient resources to achieve the goals of the collaboration; the ability of Entropic and Zenverge to successfully address technical challenges and introduce new and enhanced products on a timely basis; risks associated with market acceptance of new products developed by Entropic and Zenverge; the risk that the market for high-definition television-quality video and multimedia content delivery solutions may not develop as anticipated; the effect of intellectual property rights claims; the effects of competition, including the risk that other wireline or wireless technologies may achieve greater market acceptance than solutions developed by Entropic and Zenverge; and other factors discussed in the "Risk Factors" sections of Entropic's Quarterly Report on Form 10-Q for the three months ended June 30, 2011. All forward-looking statements are qualified in their entirety by this cautionary statement. Entropic, Intel and SMC Networks are providing this information as of the date of this release and do not undertake any obligation to update any forward-looking statements contained in this release as a result of new information, future events or otherwise.

Entropic Contacts:

Investor Contact:
Debra Hart

Director, Investor Relations
858.768.3852
debra.hart@entropic.com

Media Contact:
Robbin Lynn Chris Fallon
Marketing Communications Manager
858.768.3673
robbin.lynn@entropic.com

Chris Fallon
Ruder Finn for Entropic Communications
212.715.1691
fallonc@ruderfinn.com

Zenverge Contact:

Afsoun Mobini
Director, Corporate Programs & Communications
408.844.4774
corporate.communications@zenverge.com

 

 
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