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SYSTEM DESIGN -- Netergy has developed expertise in integrating its semiconductors and software with
peripheral components to produce complete IP telephony and multimedia communication systems. Netergy's system
technology consists of modular subsystems that can be combined and rearranged to interface to various networks
(such as analog telephone, ISDN, Ethernet LAN, wireless, and home networks) and to various telephony devices,
such as the analog phones in a home or facsimile machines in an office environment.
Products
AUDACITY-T2 IP TELEPHONY PROCESSOR -- The Audacity-T2 semiconductor performs the digital processing
functions required to build an IP phone, including formatting digital audio data for transmission over packet
networks (such as Ethernet, the internet, DSL links and digital cable systems). The chip can also be used in two-port
analog telephone terminal adapters or gateway applications.
AUDACITY-T2U IP TELEPHONY PROCESSOR -- The Audacity-T2U semiconductor has all of the functionality
of the Audacity-T2 processor but runs at faster processing speeds, has more on-chip memory, and contains an extra
interface for connecting the chip to interfaces commonly found on DSL modem chipsets. The additional on-chip
memory and higher processing speed enable the Audacity-T2U to address more advanced products, such as higher-
end IP phones and four-port terminal adapters or gateways.
VERACITY SOFTWARE -- The Veracity software suite is a comprehensive package of VoIP call control
protocols, standard network protocols, and audio processing functions. Veracity software stacks can run on either
the Audacity family of semiconductors or on third-party VoIP processors. These stacks are designed for cost
competitive, high quality applications, including VoIP/VoDSL gateways, Ethernet PBXs, and IP phones.
REFERENCE DESIGN KITS -- Netergy currently supplies the following reference design kits for its semiconductor
products:
• The Media Hub MHx reference design is a one- to four-lineVoIP gateway based on the Audacity-T2U
processor. The MHx supports up to four analog telephone interfaces and one to two 10/100 Mbps Ethernet
ports;
• The Media Hub MHw reference design is a stand-alone design for wireless media hub and small
office/home office gateway applications based on the 802.11b wireless ethernet standard;
• The IPPU phone reference design includes plastics, keypad, display, and handset and is based on the
Audacity-T2U processor; and
• The IPPW reference design is a T2U based stand-alone platform for a wireless IP phone based on the
802.11b wireless ethernet standard.
Netergy's reference design kits are intended to serve as prototype system products and allow a customer to leverage
Netergy's system design expertise to accelerate the time to market for new products. Each reference design package
includes schematics, bills of materials, documentation, embedded software, and a software development
environment that enables a customer to add new features and otherwise customize the software.
Customers
Netergy sells its IP telephony semiconductors, embedded software, and reference designs to OEMs of VoIP and
VoDSL products, such as Kinpo, Ericsson and Telsey. In addition, Netergy signed a license and development
agreement with a large OEM of video communications devices in 2002 for its new video firmware and
semiconductor, which is designed for use in videoconferencing and video telephony applications. Netergy has also
separately licensed a VoIP semiconductor core and embedded VoIP software to STMicroelectronics, or STM.
Sales and Marketing
Netergy markets its semiconductor, embedded software, and reference design products through its own direct sales
force and third-party sales representatives. Netergy supports its domestic and international direct sales efforts from
its headquarters in Santa Clara, California. Netergy's sales and marketing personnel typically provide support to