Today, we are seeing the next wave of Internet growth on the horizon. Interactivity is fast moving beyond PCs tethered to narrowband telephone lines. Consumers will have the ability to connect anytime from anywhere, as well as enjoy robust new high-speed online services, from interactive TV and handheld devices to broadband access. America Online is leading this interactive revolution.

TI digital signal processors (DSPs) are at the heart of a new generation of Internet Protocol (IP) phones being announced today by Cisco Systems, Inc.(NASDAQ: CSCO). TI's industry-leading programmable DSPs allow Cisco to enhance its leading position in the IP telephony market with these smart, flexible new phones. The Cisco IP phones allow for the convergence of voice and data into a single appliance that is an intelligent Internet communications device.

Extending their efforts to bring high-speed, "always-on" Internet service to consumers and businesses, Compaq (NYSE:CPQ) deploys TI's DSP-based asymmetric digital subscriber line (ADSL) modem chipsets in their market-leading line of Presario Internet PCs. These new TI ADSL-enabled PCs will allow Compaq's customers to access the latest broadband services such as e-commerce, telecommuting, interactive gaming and video and audio streaming at speeds up to 100 times faster than today's V.90, or 56K analog modems.

Deutsche Telekom AG is helping make the broadband revolution a reality to thousands of customers across Europe. Utilizing Siemens' DSLAM equipment and TI's ADSL central office chipset, Deutsche Telekom's T-DSL® platform delivers high quality voice, video, audio and data almost instantaneously to business and residences across the continent.

SBC Communications Inc. (NYSE:SBC ), the nation's leading provider of Digital Subscriber Line (DSL) service, is offering a customized DSL-equipped Compaq Presario computer with TI's DSP-based ADSL modem chipset. Through SBC's $6 billion Project Pronto initiative, more than 14 million homes and businesses are eligible to take advantage of SBC's DSL offering. By year-end, SBC plans to make DSL service available to more than 18 million homes and businesses, about 50 percent of its customers. By the end of 2002, SBC will have made DSL available to 80 percent of its customers, and dramatically increased DSL speeds.

At the heart of Siemens' XpressLink® ADSL technology is TI's DSP-based ADSL central office chipset, supporting full rate ADSL over ISDN. Line cards utilizing our superior performance chipset support twice as much traffic as competing systems. With built-in programmability and the flexibility to add new features, TI's ADSL chipsets enable Siemens to change and adapt as their customers do.