Groupe SAGEM selects West Bay Semiconductor to supply advanced chip for next-generation SDH/SONET system

July 22, 2002--West Bay Semiconductor Inc. announced that international technology conglomerate Groupe SAGEM SA has sponsored one of its next generation optical networking chips.

West Bay Semiconductor Inc. announced that international technology conglomerate Groupe SAGEM SA has sponsored one of its next generation optical networking chips. SAGEM will deploy West Bay's chip in compact and in low cost metro core and access equipment sold around the world.

Groupe SAGEM, with consolidated sales of $3 billion in 2001, is an internationally based technology group with presence in over 20 countries, and the second largest provider of telecommunications equipment in France.

The chip, which targets next generation SONET/SDH and multi-service provisioning platform (MSPP) equipment, features deep channelization, high capacity switching and high speed interface technologies, and enables simultaneous, real-time processing of thousands of voice and data streams.

Development of the standard product, high density system-on-a-chip is well underway.

West Bay estimates gross revenues to exceed $10 million from the sale of the new device to SAGEM, over five years. As part of the deal, West Bay also receives a non-recurring engineering (NRE) fee.

"We are very pleased to have gained the confidence of Groupe SAGEM," said Tino Varelas, president and chief executive officer of West Bay. "West Bay's solution was selected because of our unique ability to deliver superior, higher density solutions, and for our in-depth understanding of not only the North American SONET market, but also of the international SDH landscape."

"Transporting new data services over SONET/SDH is key for carriers as they seek to better exploit their existing network infrastructure," said Roy Rubenstein, senior analyst at RHK Inc., a leading telecommunications industry analyst firm. "Framer ICs, such as West Bay's, are an important step in supporting Ethernet and storage area network data services over SONET/SDH in a bandwidth-efficient manner."

At least one major, well-established global semiconductor component vendor competed with West Bay's solution for the deal with SAGEM. The deal enables Groupe SAGEM to influence the product definition and development schedule. West Bay retains full ownership of the intellectual property.

This deal represents West Bay's second major product sponsorship announcement this year with a global multi-billion dollar telecommunications equipment manufacturer.

For more information about West Bay Semiconductor Inc. (Vancouver, BC), check the company website at www.westbaysemi.com.

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