Intellon Ships Two Millionth HomePlug® 1.0 Integrated Circuit

Volume milestone demonstrates growing demand for HomePlug powerline networking

OCALA, FL - December 20, 2004 - Intellon Corporation, the world leader in powerline communications, announced that it has shipped its two millionth HomePlug 1.0 integrated circuit (IC). This important milestone demonstrates the increasing global demand for powerline networking based on the HomePlug standard and Intellon's continued leadership in HomePlug IC sales.

Intellon's HomePlug 1.0 -compliant ICs provide powerline communications for home networking, networked entertainment, commercial and broadband over powerline (BPL) applications throughout the world. Intellon developed and patented the baseline technology for the HomePlug 1.0 specification, which enables powerline communications at rates up to 14 megabits per second (Mbps) with encryption security and Quality of Service (QoS).

Continuing its leadership in HomePlug ICs, Intellon recently introduced a new 85Mbps powerline networking chipset, which is fully compliant with the HomePlug 1.0 specification. The new chipset offers the higher bandwidth performance necessary to drive next -generation home entertainment applications such as standard definition video, IPTV and whole -house audio. In the second half of 2005, Intellon will introduce its first HomePlug AV IC, a 200Mbps product that will enable the distribution of multiple high definition video streams over existing in -home powerlines, with whole house coverage, low latency and robust QoS. Intellon is a major contributor to the baseline technology for the HomePlug AV specification.

According to a recent report from In -Stat/MDR, the overall market for home networking semiconductors will grow 12 percent per year from 2004 to 2008, moving from $1.34 billion to $2.32 billion. The two drivers for this market growth are overall growth in home networking adoption and the increased focus on media networking.

"As the home networking market moves beyond data centric laptop mobility to whole house distribution of home entertainment, the demand for powerline communications is exploding," said Bill Casby, vice president of sales for Intellon Corporation. "This market requires exactly what our HomePlug ICs enable -robust whole house coverage without annoying dead spots and interference, multiple outlets in every room, and installation that is as easy as plugging the product into a convenient power outlet. Cable, telephone and satellite service providers, consumer electronics manufacturers and consumers are all recognizing the connectivity advantages that Intellon's HomePlug ICs provide in the emerging digital home."

Intellon's HomePlug ICs are used to create instant networks, enabling PCs, broadband modems, set -top boxes, gaming consoles and audio/video devices to communicate instantly over existing power lines in the home. HomePlug embedded products can be found at numerous retailers, both online and conventional, including CompUSA, Fry's Electronics, Circuit City and MicroCenter. Intellon's HomePlug ICs are also used for commercial and BPL applications.

About Intellon Corporation
Intellon is the world leader in powerline communications, providing HomePlug® compliant and other powerline integrated circuits for home networking, networked entertainment, BPL access and commercial applications. Intellon created and patented the baseline technology for HomePlug 1.0, and is a major contributor to the baseline technology for the new 200 -Mbps HomePlug AV powerline standard. With over two million HomePlug ICs sold, Intellon holds the dominant market share of the rapidly growing HomePlug market. Intellon is a founding sponsor and member of the board of directors of the HomePlug Powerline Alliance. The company was founded in 1989 and is headquartered in Ocala, Florida, with offices in San Jose and Toronto.

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