Eicon Networks to Purchase Intel's Media and Signaling Business

The acquisition is expected to allow Eicon to become a leadingplayer in the media processing and signaling market segment. The salewill enable Intel to focus its investments on its core communicationsand embedded businesses, including Intel(R) Architecture and networkprocessors, modular communications platforms and optical modules. Thetransaction is expected to close in approximately four to six weeksand is subject to regulatory review and normal closing conditions.Financial terms are not being disclosed.

Intel's media and signaling business includes all of the productlines from Intel's Dialogic acquisition, as well as Host MediaProcessing (HMP) software and HMP-enabled blades. Intel's completeline of SS7, PBX integration and gateway solutions are also includedin the sale.

With Eicon's complementary Diva Server line of products, it isanticipated that the acquisition will enable Eicon to provide enhancedenterprise and service provider offerings to current Eicon and Intelcustomers as well as future customers. Eicon plans to continue to workclosely with Intel as an active member of the Intel(R) CommunicationAlliance.

Eicon also announced that concurrently with the acquisition,leading global investment groups Investcorp Technology Ventures andTennenbaum Capital Partners will invest in Eicon, with Investcorpserving as the lead equity investor in the transaction and Tennenbaumproviding a credit facility and serving as an equity co-investor.

"This is a very exciting day for Eicon," said Nick Jensen, EiconNetworks' president and CEO. "Eicon's and Intel's media and signalingproducts complement each other well. We expect this acquisition toextend our global reach with solutions for both traditional circuitswitch communication technology and leading-edge IP platforms for bothenterprises and service providers.

"We are also very pleased that the prestigious investment firms ofInvestcorp and Tennenbaum believe so strongly in the potential of thecompany following the acquisition that they have chosen to becomeshareholders in Eicon," Jensen added.

"Our investment in the combination of Eicon and the Intel assetsreflects our confidence in the tremendous potential of the media andsignaling space," said Savio Tung, head of Investcorp TechnologyVentures. "Equally important, we have a great deal of experienceexecuting complex spin-out transactions to help ensure a smoothtransition with Eicon."

"We are delighted to have the opportunity to invest in thecombination of Eicon and the Intel assets," said Steven Chang, aPartner at Tennenbaum. "We're committed to providing management withthe financial resources and expertise they need to continue to provideinnovative products and services to customers and grow the business.This investment underscores Tennenbaum's continued commitment toinvesting in technology companies and highlights our confidence in themedia processing and signaling market segments."

"Intel is sharpening its focus on communications and embeddedmarket segments that are aligned with our core businesses," saidAnthony Neal-Graves, general manager of Intel's Modular CommunicationsPlatform Division. "The media and signaling business continues topresent an attractive market opportunity, and these products willcontinue to be an important part of the Intel ecosystem. We willcontinue to collaborate with Eicon to ensure that customers havecomplete and competitive Intel Architecture-based solutions."

Intel's media and signaling business includes approximately 600employees involved in a variety of functions, including engineering,product testing and validation, operations and marketing. It isexpected that a significant number of these employees will becomeemployees of Eicon. The two companies will be working together duringthe coming months to seamlessly transition the business in order tocontinue to offer high quality service and support to all customers.

This sale does not impact Intel's communications infrastructureproducts for telecommunications equipment manufacturers, including itsindustry-leading Advanced Telecom Computing Architecture* (ATCA)blades and carrier-grade rack mount servers, and its CompactPCI*compute blades and chassis.

About Intel

Intel, the world leader in silicon innovation, developstechnologies, products and initiatives to continually advance howpeople work and live. Additional information about Intel is availableat www.intel.com/pressroom.

About Eicon Networks

Eicon Networks, founded in 1984, provides media processinghardware and software that enable developers and system integrators todeliver applications for voice, speech, conferencing, VoIP, fax and IPbased solutions. Eicon's flagship Diva Server products share apowerful common architecture along with a wide range of tools fordevelopers and market leading support. Further information isavailable at www.eicon.com.

About Investcorp Technology Ventures

Based in New York and London, Investcorp Technology Venturesfocuses on venture buyouts, corporate spinouts and growth capitalfinancing of established technology companies. Investcorp TechnologyVentures is part of Investcorp, a global investment group with officesin New York, London and Bahrain. It was established in 1982 and hassince completed transactions with an aggregate value of approximately$30 billion. Investcorp currently manages over $9.9 billion in privateequity, venture capital, real estate and other alternativeinvestments. Further information is available at www.investcorp.com.

About Tennenbaum Capital Partners

Tennenbaum Capital Partners is a Santa Monica, California-basedprivate investment firm managing over $4 billion in private funds.Tennenbaum focuses on investment opportunities between $50 million to$250 million. The firm's investment strategy is based on a long-termhorizon and value-oriented approach. Tennenbaum's core strengthsinclude an in-depth knowledge of equity and debt financing vehicles inthe public and private markets with a focus on complex investmentssuch as acquisitions and special situations. Tennenbaum has extensiveinvestment experience in several industries, including retail,manufacturing, energy and power as well as technology and telecom.Recent investments in the technology sector include Celerity, Inc.,Enterasys Networks, Information Resources, Inc., Isola Group, LawsonSoftware, Online Resources Corporation and Vitesse Semiconductor. Formore information, please visit www.tennenbaumcapital.com.

Eicon Diva, Diva Server and the Eicon logo are trademarks of EiconNetworks Corporation or its subsidiaries. Intel is a registeredtrademark of Intel Corporation or its subsidiaries in the UnitedStates and other countries.

*Other names and brands may be claimed as the property of others.