ELSA Develops Its Own Chips for Internet Applications

New Core Competence-A Solid Foundation for Future Innovation

November 23, 1998 - ELSA reported the successful conclusion of the development of its first own chip for data communications. It invested approximately one million German marks during the current business year to accomplish this. Chip development will be expanded as a strategically important sector. This newly established core competence has created a solid foundation for further innovations.

Modems, ISDN and other communication products such as the recently introduced cable modem require powerful, special processors as their most essential core component. These are then adapted to the respective application with several external components. These processors have a significance for ELSA products similar to that of the CPU for a PC. Until now, ELSA has purchased in these chips ready-made. ELSA's own chip requires up to 40% fewer external components, which means that it reduces costs substantially and makes implementation of additional functions possible.

Theo Beisch, President and CEO of ELSA AG, commented on this spectacular and successful development: "In the future market of Internet communications, permanent cost reductions combined with simultaneous improvement of features and quality are prerequisites for success. We are achieving all these goals, becoming independent of external suppliers and increasing our real net output and global competitiveness with ELSAcon, our first own communications controller."

The chip with the name ELSAcon™ (for controller) is a processor core based on ARM7 technology, which is linked to modern modules of network technology. Special attention is paid to powerful memory administration, which ELSA developed especially for communication applications. It ensures that sufficient computing power is available even for the fastest data transmissions through the Internet.

ELSA AG, based in Aachen, is traded publicly on the "Neuer Markt" stock exchange in Frankfurt. ELSA AG is internationally represented by its subsidiaries in Santa Clara (California, USA), Taipei (Taiwan), and Tokyo (Japan). Founded in 1980, ELSA has built up a world-class reputation for applying advanced engineering expertise to computer graphics and data communications products. Technological competence, German standards of quality, leading-edge products and services backed up by excellent support: These are factors that firmly place ELSA at the forefront of the market today.

All names mentioned may be trademarks or registered trademarks of their respective owners. The ELSA logo is a registered trademark of ELSA AG.

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