Engagement of ZyXEL's VDSL2 Equipment and Broadcom's VDSL2 Chipsets Powers Chunghwa Telecom's Next Generation Networks

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September 30, 2008

Brussels, Belgium-- Broadband World Forum 2008-- September 30, 2008-- ZyXEL Communications (TSE: 2391), the world's leading broadband access solutions provider, and Broadcom Corporation (Nasdaq: BRCM), a global leader in semiconductors for wired and wireless communications, has announced that ZyXEL's VDSL2 equipment supported by Broadcom® system-on-a-chip (SoC) solutions has won Chunghwa Telecom's (CHT) latest 480,000-line VDSL2 equipment tender.

With this tender, ZyXEL will provide CHT with its VDSL2 equipment, including IP DSLAM IES-5005 series, VDSL2 Switch VES-1600 series, and VDSL2 CPE P-870 series, based on Broadcom's latest BCM6368 multimode residential gateway, to help CHT reach its goal of becoming the 'Next Generation Access Network'and MOD (Movies on Demand) to surpass one million users by the end of this year. The continuing success of CHT tenders signifies market validation of ZyXEL's trustworthy technical capabilities.

With high bandwidth availability, ZyXEL VDSL2 solutions offer telco operators and service providers value-added services to provide triple-play and rich media services. ZyXEL has maintained its position as the leading VDSL2 equipment provider and continues to provide cutting edge IP-based, DMT VDSL technology that interoperates with all major CO equipment vendors. In addition, ZyXEL meets market trends and needs through a complete range of VDSL2 products, including CPE, pizza-box, and chassis-base solutions, to fit different applications for telco operators and service providers.

"We are very pleased the cooperation with ZyXEL and our outstanding engineering teams worldwide have once again achieved the best VDSL2 rating by Chunghwa Telecom. Winning CHT's VDSL2 tender for a second consecutive year is a significant endorsement for Broadcom's VDSL2 CO central office chipset solution and our BCM6368 multi-mode residential gateway solution,"said Greg Fischer, Vice President & General Manager of Broadcom's Carrier Access line of business.  "'Our success with Chunghwa Telecom bodes well for the future market success of the Broadcom based ZyXEL VDSL platform as both companies leverage this cooperation into new xDSL opportunities around the world."

"It is a testament to ZyXEL's technical expertise and competitiveness that the company has won several consecutive CHT tenders," Dr. Yuh-Long Chen, President of ZyXEL Communications, said. "Based on our successful and extensive VDSL deployment experiences, we are better equipped to duplicate the success in CHT's NGN network established to accelerate NGN and MOD applications in the market."

About ZyXEL Communications
ZyXEL Communications Corp., founded in 1989 and headquartered in Taiwan, is the leading provider of complete broadband access solutions for service providers, and business and home users. The company was recently named Taiwan's first 'green enterprise,'and is the second highest ranked 'green' company in Asia (2007 CG watch, Asian Corporate Governance Association).

As one of the early modem manufacturers, ZyXEL has undergone many transformations in the fast-paced networking industry. Today, ZyXEL is one of the few companies in the world capable of offering complete networking solutions including DSL customer premise equipment, central office equipment, Internet security appliances, switches, WLAN equipment, network-attached storage and centralized network management systems.

The company has 3200 employees and distributors in 70 countries, reaching more than 150 regional markets. The ZyXEL Communications Corp. includes 29 subsidiaries and sales offices and three research and development centers worldwide. For more information, visit the company's Website, http://www.zyxel.com.

Broadcom® is a trademark of Broadcom Corporation and/or its subsidiaries in the United States, certain other countries and/or the EU. Any other trademarks or trade names mentioned are the property of their respective owners.