291001Microtune

Microtune adds wireless communications capability to its portfolio of leading-edge RF silicon and systems 'gateway' products, positioning the company for market and technology leadership in end-to-end broadband media access solutions.

Plano, Texas, October 29, 2001 - Microtune™, Inc. (NASDAQ: TUNE), a leader in integrated radio frequency (RF) silicon and systems solutions for the broadband communications, automotive and consumer electronics markets, today announced a definitive agreement to acquire privately-held Transilica, Inc. (San Diego, CA), an innovation leader in developing system-on-chip products for short-range wireless applications. The acquisition advances Microtune's strategy of enabling ubiquitous and mobile broadband media access, increasing its corporate breadth by adding silicon-based capabilities for the wireless exchange of information using 802.11, Bluetooth™ and other international standards.

Under the terms of the agreement, 19.99% of Microtune's outstanding shares will be issued in exchange for all of the common stock, preferred stock, and stock options of Transilica. The consummation of the acquisition, which is expected to occur in November, 2001, is subject to a number of conditions, including obtaining required third-party consents.

Microtune management will conduct a conference call on Monday, October 29, 2001 at 10:30am EST to provide an overview of the acquisition. Interested parties should call the following number to participate: 630-395-0355, password 'bartek'.

"The Transilica acquisition is a significant investment in our future," said Douglas J. Bartek, Chairman and CEO of Microtune. "The deal is projected to be accretive in Q4, 2002. It will not affect Microtune's internal projections for break-even in the back half of 2002, and while it does require some cash during the ramp-up phase, Microtune will not need to access capital markets for additional funding for this acquisition. We expect the revenues of the combined companies to be in the $120M range for 2002, an increase of 40% from existing analysts estimates and approximately double the 2001 revenues of Microtune."

The acquisition will enable Microtune to build on its core RF 'gateway' silicon and systems technologies, including its pioneering and patented MicroTuner™ single-chip tuners. The company will provide not only the RF two-way communications functions for its customers' cable modems, set-top boxes, car entertainment systems and TV-based appliances, but also the capability for these products to easily connect with phones, notebooks, PDAs, printers and other computer peripherals and consumer electronics devices. It positions Microtune to offer an end-to-end RF-based silicon solutions set for its customers, while enabling anytime, anywhere access of broadband video, audio and data for consumers at home, in the office or in mobile environments.

BUILDING ON SYNERGIES TO DEVELOP END-TO-END SOLUTIONS
"The addition of Transilica to the Microtune team builds upon our two companies' synergies across technologies, markets and customers, and it leverages Microtune's strengths and presence in the cable modem and set-top box sector," Mr. Bartek added. "We believe that short-range wireless connectivity will eventually pervade every broadband application. From our investigations, Transilica has the most innovative short-range wireless RF and baseband technology in the industry. This acquisition rounds out our capabilities to better serve OEM customers with complete and integrated RF solutions across wired and wireless communications."

According to Cahners In-Stat Group, the markets for wireless communications are expected to explode, and Bluetooth-enabled equipment shipments alone will soar to 955 million units in 2005, a 360% five-year compound annual growth rate (CAGR).

"Leveraging our combined technologies and unique RF technical expertise," Mr. Bartek explained, "Microtune is now positioned to integrate and innovate diversified new RF-based products, significantly broadening our markets and enhancing our opportunities for accelerated growth."

TRANSILICA: SYSTEM-ON-CHIP SOLUTIONS FOR WIRELESS COMMUNICATIONS
Targeting the high-growth cordless phone, headset, handset and computer peripherals markets, Transilica provides leading-edge system-on-chip solutions for short-range applications based on industry-standard protocols, such as Bluetooth and 802.11. Its products function as critical wireless communications components in keyboards, game controllers, notebooks, PDAs, cordless phones, and digital cameras, enabling consumers to conveniently and remotely access data and information through wireless personal area networks (WPANs).

Transilica's flagship product, the OneChip system-on-chip, is the world's smallest and most highly integrated WPAN product on the market today, incorporating all the functions - RF, baseband, memory and processor - necessary for the total Bluetooth solution.

With a world-class team of RF, baseband and software engineers, Transilica developed proprietary core technology, backed by 29 patent applications, that bring its customers time-to-market, cost, form-factor and power-efficiency advantages. With its history of superior product design and rapid execution, Transilica has expanded its design methodologies into future products embracing the 2.4GHz and 5GHz standards and higher-performance wireless local area network (WLAN) applications.

EXPANDED MARKET AND TECHNOLOGY RESOURCES
"We are very pleased to be part of Microtune," said Hock Law, President and CEO of Transilica. "Both companies share a commitment to RF and baseband silicon innovation and a focus on providing total solutions. Microtune brings to us the corporate strengths of a worldwide organization, with an established operations, manufacturing and sales/marketing infrastructure, and a complementary technology base to provide our customers converged solutions. Microtune has an outstanding reputation as a technology and market leader, and we are looking forward to being part of the Microtune team."

The addition of Transilica also brings high-value business assets to Microtune, including a strong sales and marketing presence in Japan and an existing customer base for wireless connectivity solutions. Transilica, with design teams in San Diego and Singapore, adds expertise in digital ASIC, system-on-chip integration and embedded software design to Microtune's already extensive core competencies in RF silicon and systems engineering. With more than 100 RF and baseband technology experts, the Transilica team almost doubles the size of Microtune's engineering and technical staff.

FORWARD LOOKING STATEMENT
This press release contains forward-looking statements and other statements which are made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that could cause such statements to differ materially from actual future events or results. Such forward-looking statements are generally accompanied by words such as "plan", "project", "estimate", "expect", "believe", "enable", "could", "would", "anticipate", "may", or other words that convey uncertainty of future events or outcomes. Forward-looking statements in this press release include: the acquisition positions the company for market and technology leadership in end-to-end broadband media access solutions; expectation that consummation of the acquisition will occur in November 2001; the deal is projected to be accretive in Q4 2002; the deal will not affect Microtune's internal projections for break-even in the back half of 2002 and that Microtune will not need to access the capital markets for additional funding for this acquisition; the expectation that the revenues of the combined companies will be in the $120 million range in 2002, an increase of 40% from existing analysts estimates and approximately double the 2001 revenues for Microtune; we believe that short-range wireless connectivity will eventually pervade every broadband application; from our investigations, Transilica has the most innovative short-range wireless RF and baseband technology in the industry; and Microtune is now positioned to integrate and innovate diversified new RF-based products, significantly broadening our markets and enhancing our opportunities for accelerated growth. In addition to the risks set forth in our reports and documents described below, risks and factors which could cause our actual results to differ include: Microtune's ability to integrate the acquired business, technology and employees of Transilica in a timely and efficient manner with our current business and product offerings, both domestically and abroad; the demand for both our product offerings and Transilica's product offerings; the acceptance of our technology over competing technologies; economic conditions that have affected the broadband communications and wireless markets recently; the need to access the capital markets sooner than expected; any of which may cause the Microtune's financial results to fluctuate. In addition, any acquisition we pursue could result in our incurring of debt, liabilities, amortization of goodwill and other intangibles, purchased research and development expense and other acquisition expenses, any of which could have a material adverse affect on our business. If management does not control these debts, liabilities and expenses, or if economic conditions worsen, these risks and factors could prevent us from achieving our expectations and projections in the forward-looking statements, including those related to this acquisition being accretive, not affecting internal break-even in the back-half of 2002, not needing to access the capital markets for this acquisition, and achieving revenue for the combined companies in the $120 million range in 2002. Readers are referred to the reports and documents, including the "risk factor" sections therein, filed by Microtune with the Securities and Exchange Commission from time to time, including its Form 10-K for the year ended December 31, 2000, Form 10-Q for each quarter and Form S-3 filed on August 17, 2001 as amended and filed on August 28, 2001.

ABOUT MICROTUNE
Microtune, Inc. is a leading RF silicon and systems company that designs, manufactures and markets RF 'gateway' solutions for use in broadband communications, automotive and consumer electronics markets. Inventors of the MicroTuner™ single-chip broadband tuner and a family of silicon broadband amplifiers, the Company currently holds fourteen U.S. patents for its RF technology, with an additional twenty pending approval, containing a total of more than 1300 supporting claims. Founded in 1996, Microtune is headquartered in Plano, Texas, with key design, manufacturing and sales centers located around the world. The web site is www.microtune.com.

Editors Note:
Microtune, MicroTuner and MicroStreamer are trademarks of Microtune, Inc.