Texas Instruments Powers Next -Generation IP Set Top Boxes from Kreatel for Advanced Digital TV

Leading Provider Kreatel Adopts Flexible Architecture Using Leading-Edge, High Performance Digital Media Processor from Texas Instruments

DALLAS and LINKÖPING (January 13, 2004) - - Kreatel and Texas Instruments (TI) [NYSE: TXN] today announced that Kreatel has chosen TI' TMS320DM64x generation of digital media processors based on TI's C64x™ DSP core, for its upcoming IP set top box products.

Since launching its first IP set top box system in September 2000, Kreatel has become one of the first companies to deliver more than 100,000 IP/DSL boxes around the world to prestigious customers such as Fastweb, Telefonica, Lyse Energi and Agder Energi.

IP set top boxes are used in fibre to the home (FTTH) and DSL networks providing digital TV over existing phone lines. The services are running over existing IP network infrastructures and can include IPTV, video on demand, Internet web browsing, web conferencing, gaming and voice -over -IP. Research firm Instat forecasts the IP set top box market will reach 19 million units through 2007 as service providers offer broadcast TV and VOD to a larger number of households.

The next generation IP set top box will take a prominent place in the Kreatel system solution, where it will provide operators with support for new audio and video codecs as well as possibilities for new services. As all set top boxes in the solution run on the same software platform, the next -generation IP set top box can run in parallel with currently installed bases.

"We are delighted that Kreatel has chosen the DM64x generation of digital media processors for its next generation IP set top box," said Arnaud Duclap, business development manager for TI's DSP group in Europe. "The flexibility and performance of the DM64x generation ensures that the same hardware can be used for different algorithms and different regions of the world with no performance or cost issues. This is ideal for IP set top box makers and operators looking to provide the latest technology at the best price."

The DM64x offers flexibility to the customer by supporting a full range of advanced audio and video coding algorithms from MP3, AAC and Windows Media Audio series 9 to MPEG 2, MPEG 4, H.264, Windows Media Video series 9 and other codecs. The data processing capabilities offered by the device allow the support of a wide range of advanced applications, including Personal Video Recording features, high definition TV (720 lines) and video conferencing systems (H.323, H.263).

As video and audio codecs evolve, they can be added to the set top box system without having to change the hardware, thus giving an upgrade path to high definition TV. "Kreatel and Texas Instruments share the same vision on the importance of product quality, reliability and flexibility. We believe the programmable signal processing platform from TI will bring more flexibility into our designs at a best in class performance level, allowing us to offer differentiated solutions to our customers," said Lars Bengtsson, Chief Executive Officer of Kreatel.

The DM64x generation ranges in performance from 400MHz to 600MHz giving multiple performance, price and integration options. Hardware, software, video codecs and middleware for the DM64x generation are available now alongside hardware and software development kits to reduce the time to market of IP set top box developers.

TI provides a broad and scalable product offering to OEMs that cuts time to market for companies such as Kreatel, allowing them to focus on their own value -added custom post -processing. TI's aggressive silicon integration roadmap answers key customer concerns such as reducing the overall cost of the system while increasing performance and maintaining sustainable differentiators in their devices.

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About Kreatel
Kreatel fulfils necessary conditions for high -quality end user experience of TV -centric services in IP -based networks. The Kreatel® TV Application Platform, the corner stone of the Kreatel® IP -STB Solution, is an open multi -application environment for creation and rollout of profitable TV services. Kreatel delivers an optimized combination of software, set -top boxes, and professional services, proven to satisfy service providers' need for a stable and future -proof solution. Through established partnerships with leading companies, Kreatel can offer the best complete solution and is the preferred choice among xDSL and fiber operators worldwide.

About Texas Instruments
Texas Instruments Incorporated provides innovative DSP and analog technologies to meet our customers` real world signal processing requirements. In addition to Semiconductor, the company`s businesses include Sensors & Controls, and Educational & Productivity Solutions. TI is headquartered in Dallas, Texas, and has manufacturing, design or sales operations in more than 25 countries.

Texas Instruments is traded on the New York Stock Exchange under the symbol TXN. More information is located on the World Wide Web at www.ti.com

All registered trademarks and other trademarks belong to their respective owners.

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