Entropic’s Channel Stacking Switch Enables Via Embratel to Provide Enhanced Service

VIA EMBRATEL DEPLOYS ENTROPIC COMMUNICATIONS’ SINGLE WIRE direct-broadcast satellite TECHNOLOGY TO DELIVER COST-EFFECTIVE HOME entertainment serviceS​

Entropic’s Channel Stacking Switch Enables Via Embratel to Provide Enhanced Service to More Customers in Brazilian Multiple-Dwelling Units​

AMSTERDAM (IBC2010 – Stand #3.B16), September 9, 2010— Entropic Communications, Inc. (NASDAQ: ENTR), a leading provider of silicon and software solutions to enable connected home entertainment, today announced its Channel Stacking Switch (CSS) technology has been deployed by Via Embratel, company held by Empresa Brasileira de Telecomunicações S.A., the premium telecommunications carrier in Brazil, to deliver direct-broadcast satellite (DBS) entertainment services to consumers’ homes via a single cable wire infrastructure. By adopting Entropic’s CSS technology, Via Embratel can better serve customers in multiple-dwelling unit (MDU) environments by supporting multiple tuners over a single cable, enabling easy plug-and-play set-top box (STB) upgrades, and reaching potential new subscribers, previously unserviceable due to access limitations or wiring restrictions.

Designed to significantly reduce both the cost and complexity of MDU satellite installations, Entropic’s CSS technology enables Via Embratel to deliver multiple video streams over a single cable. This is critical as many Brazilian MDUs only have DBS access via a single coax line, where the cost difference for adding or upgrading DBS service into an apartment—off the traditional trunk system versus a CSS truck system—is substantial. In a traditional system build-out, multiple new cables would be brought into the apartment when more than a single tuner STB was installed. By simplifying the cabling architecture approach with Entropic’s CSS technology, only a single cable is required, and Via Embratel can provide access to available programming for up to eight tuners within this single cable run from the satellite dish – keeping installation costs at a minimum and in many cases, enabling DBS service where it would otherwise be impossible to deliver.

Working with Embratel and their original equipment manufacturers (OEMs), Entropic, has developed the initial MDU single cable product to meet the exacting standards of Via Embratel’s customers. By installing the multi-switch product into the MDU’s existing trunk system, Via Embratel is able to quickly convert customers to their DBS service with no new wires.

“With Entropic’s unique CSS technology, we are able to work within the existing cable infrastructure constraints found in the majority of Brazilian MDUs to provide best-in-class satellite service to both existing and new customers,” said Antonio João Filho, executive director of Via Embratel. “We are able to offer high system reliability and improve aesthetics with much less cabling compared to non-CSS installations; enabling us to gain new customers, lower customer churn, and achieve higher overall customer satisfaction levels.”

Potential next phases of deployment include expanding beyond the MDU market to the Single Family Home (SFH) segment, where Via Embratel could offer more compelling entertainment services on the single-wire network, by combining Entropic’s CSS technology with its MoCA (Multimedia over Coax Alliance) based home networking silicon, which enables streaming multiple high-definition video, audio and data traffic throughout the home. By combining CSS with MoCA technologies, Via Embratel would gain a significant competitive customer service advantage in its ability to offer new services while reducing the capital costs associated with new subscriber installations and existing customer upgrades. Further, combining the CSS and MoCA technologies would provide a flexible way to allocate traffic on the subscriber’s coax wiring; future proofing potential bandwidth expansion needs required for capacity-heavy home networks.
“Via Embratel’s deployment of our CSS technology is a clear proof-point to the global momentum established to make the single-wire infrastructure the industry standard for DBS installations,” said Patrick Henry, president and chief executive officer, Entropic. “Our CSS solution is evolving the way broadcast satellite communications is brought into the home; enabling DBS service providers, like Via Embratel, to differentiate themselves by providing innovative services to attract new customers while retaining current subscribers.”

About Embratel
EMBRATEL - Empresa Brasileira de Telecomunicações S.A. provides complete telecommunications solutions for all Brazilian market, including local, long distance and international, national fiber back haul, submarine cable and a fleet of satellites operated by Star One, its controlled company. Embratel also holds Via Embratel, the Brazilian DTH operation with the biggest growth in 2010 and that is present in more than 82% of the Brazilians cities. For more information, visit Embratel at www.embratel.com.br and Via Embratel at www.viaembratel.com.br

Planin – Press Relations for Embratel
Angélica Consiglio and team +55 (11) 2138-8900 – www.planin.com
Contats: Ana Carolina Alves +55 (11) 2138-8921 and Felipe Guimarães +55 (11) 2138-8927
embratel@planin.com

About Entropic Communications
Entropic Communications, Inc. (NASDAQ: ENTR) is a leading fabless semiconductor company that is engineering the future of connected home networking and entertainment by providing next-generation silicon and software technologies to the world’s leading cable, telco and satellite service providers, OEM’s and consumer electronic manufacturers. As a co-founder of MoCA (Multimedia over Coax Alliance), Entropic pioneered and continues to evolve the way high-definition television-quality video and other multimedia & digital content such as movies, music, games and photos are brought into and delivered throughout the home. For more information, visit Entropic at www.entropic.com.

Forward-Looking Statements
Statements in this press release that are not strictly historical in nature constitute "forward-looking statements." Such statements include, but are not limited to, statements regarding Entropic's leadership in providing MoCA enabled technology, and continued or future integration of Entropic's silicon or other technology into products of OEMs. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause Entropic's actual results to be materially different from historical results or from any results expressed or implied by such forward-looking statements. These factors include, but are not limited to, the effects of competition; Entropic's dependence on a limited number of service providers and customers; Entropic's ability to successfully collaborate and the ability of each of them to introduce new and enhanced products on a timely basis; the risk that the market for high-definition television-quality video and multimedia content delivery solutions, including the use of satellite distribution, may not develop as anticipated; the effect of intellectual property rights claims; and other factors discussed in the "Risk Factors" section of Entropic's Quarterly Report on Form 10-Q for the three months ended March 31, 2010. All forward-looking statements are qualified in their entirety by this cautionary statement. Entropic is providing this information as of the date of this release and does not undertake any obligation to update any forward-looking statements contained in this release as a result of new information, future events or otherwise.

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