Galileo Technology (Nasdaq: GALT) and IBM today announced a communications technology initiative that is expected to enable network equipment manufacturers to rapidly design and implement higher performance and more flexible next-generation Internet equipment.

This effort is intended to speed the development and introduction of networking products targeting high-growth applications such as converged voice/data/video campuses, business-to-business service providers, and high-performance carrier-class and optical-networking systems by allowing for interoperability between IBM's PowerNP network processor and Galileo Technology's switching products.

Under the initiative:

• IBM intends to enhance its PowerNP network processor architecture to seamlessly work with Galileo Technology's next generation switching products. Used in conjunction with Galileo Technology's full-wire speed scalable switching, routing and Availability-of-Service™ networking products, customers using IBM's PowerNP are expected to achieve greater higher-layer flexibility and deep-packet processing performance at OC-192 and 10 Gbps (gigabit-per-second) speeds.
• IBM intends to manufacture portions of Galileo's next-generation switching family using IBM's SA-27E ASIC process technology. IBM would manufacture these chips at its Burlington, VT manufacturing facility beginning in 2001.

"With their high performance GalNet® switching products, Galileo is expected to be an important contributor on the growing list of leading third-party hardware and software vendors who are committed to establishing common technology interfaces between all network chips," said James Northington, Vice President of Network Processing for IBM. "We believe the versatility of our PowerNP network processors can help revolutionize the communications industry; but we realize no company can single-handedly bring about that change. So we're working with companies like Galileo to create solutions that meet our customers' next-generation networking requirements."

"We are very happy to have IBM, a leading manufacturer of high-performance network processors, working with us to establish interoperability between the PowerNP network processor and our next generation of switching products. They have done an excellent job of defining a network processor architecture that values interoperability and a common development environment," said Avigdor Willenz, CEO and founder of Galileo Technology. "Our products, combined with network processors such as IBM's, can provide customers greater scalability, performance, and higher-level capabilities than they can achieve with similar products currently available on the market."

This relationship is expected to provide solutions optimized for the following high-growth communications applications:

• Carrier-class data networking systems where proprietary routing protocols and system and in-field flexibility and upgradability are of paramount importance.
• Web-switching, application and storage service provider, and Web-hosting systems where deep-packet processing, and feature-rich services are required.

Galileo's next-generation family of switching products are expected to extend well beyond the strong feature set that has made the GalNet-3 family of products successful in high-end networking applications: full-wire speed, feature-rich, scalable performance at layer two and layer three.

The IBM PowerNP network processor is a highly customizable and scalable chip offering network equipment vendors a powerful building block for developing high-performance systems. The PowerNP features distributed processing capabilities and a rich set of hardware-assisted circuitry, which enable exceptional throughput, control and flexibility. Software programmability helps equipment makers quickly implement and change features such as packet classification and modification, packet forwarding and real-time frame processing. For example, the IBM PowerNP performs wire-speed forwarding and filtering functions through a combination of hardware and software, enabling network gear manufacturers to customize these functions through programming.

About Galileo Technology

Galileo Technology, a market leader in communications systems on silicon, is one of the semiconductor industry's fastest growing suppliers of complex, high-performance, integrated circuit devices serving the needs of the LAN, MAN, and WAN markets. Galileo is organized around two principal product groups: Internetworking Products, consisting of system controllers and WAN communications controllers, and Switching Products, which consists of switched Ethernet controllers and switched PoS/ATM controllers. Galileo's products form the heart of many advanced communications systems built by leading OEMs, such as Accton, Alcatel, Cabletron, Cisco Systems, D-Link, Ericsson, Hewlett Packard, Intel, Lucent, Marconi, NBase Communications, and Nortel Networks.

Galileo employs more than 300 people worldwide and has business headquarters in San Jose, California and R&D headquarters in Manof, Israel. For more information on Galileo, call 1-888-GALTEK-1 or visit its website at http://www.galileot.com/.

About IBM

IBM's Microelectronics Division is a key contributor to IBM's role as the world's premier information technology supplier. IBM Microelectronics develops, manufactures and markets state-of-the-art semiconductor technologies, products, packaging and services. Its superior integrated solutions can be found in many of the world's best-known electronic brands. More information about IBM Microelectronics can be found at http://www.chips.ibm.com/index.html.

IBM andIBM Microelectronic are trademarks of the International Business Machines Corporation.

Availability-of-Service is a trademark, and GalNet® switching products is a registered trademark of the Galileo Technology Company.