Entropic Communications And Zenverge ARM Service Providers With Connected Home Networking Solutions To Maximize Subscriber Value

Coupling Entropic's Reliable MoCA Silicon with Zenverge's Transcoding Performance, Consumers Can Easily Move Content between Any Device for True Digital HD Convergence

CHICAGO, (The Cable Show – Booth #563), June 15, 2011 — Entropic Communications, Inc. (Nasdaq: ENTR), a leading provider of silicon and software solutions to enable connected home entertainment and Zenverge, a leading developer of advanced media integrated circuits (ICs) for the connected home, today announced their collaboration to develop a MoCA® (Multimedia over Coax)-based transcoding appliance reference design that allows service providers to maximize subscriber value by giving consumers the freedom to view personal or Pay-TV content on any consumer electronics (CE) device.

To enable seamless HD content sharing across any device type, service providers must adjust their content distribution strategies to address:

• Consumers' entertainment viewing preferences—from where, when, how, and what type of device;
• Interoperability issues between CE devices that may have different formatting, resolution, and digital rights management (DRM) capabilities such as tablets;
  Quality of service issues with Wi-Fi networks; and
• Cost and bandwidth consumption challenges related to storing multiple copies of content for each CE device.

To solve these problems, Entropic and Zenverge have aligned to develop a transcoding appliance reference design that will enable service providers to optimize digital video recorder (DVR) storage properties and transcode broadcast content in real-time; thereby allowing consumers to easily view or transfer content from one CE device to another, over a MoCA or wireless home network.

Through this collaboration, Zenverge provides its revolutionary, high-performance, low-latency digital media IC to deliver a video pipeline capable of transcoding and decoding HD content up to four-times faster than real-time, and 30-times faster for lower-resolution content. In addition, the Zenverge IC can simultaneously transcode up to four independent HD streams, or up to 16 independent SD streams, along with supporting full encode of HD content. Additionally, Entropic brings proven speed and performance with its MoCA silicon and software delivering the most robust, predictable and powerful home networking backbone to reliably distribute bandwidth-intensive content to any CE device. As MoCA is the de-facto connected home entertainment standard in the U.S., deploying Entropic's proven silicon with its first-to-market MoCA 2.0 roadmap is ideal; especially as service providers evolve to MoCA 2.0 networks.

"Consumers are driving content-device convergence quickly, and Pay-TV service providers see this as a significant new revenue stream," said Amir Mobini, chief executive officer, Zenverge. "The proliferation of tablets has created an exciting new TV viewing experience. Multi-channel transcoding and having a reliable MoCA network are two critical components to the user experience puzzle, and by partnering with Entropic we can provide the best way for operators to ensure subscribers have the same viewing experience across any device."

"There is a tremendous opportunity for service providers to expand the number of screens in which their subscribers can consume their services," said Vinay Gokhale, senior vice president, Marketing and Business Development, Entropic. "With this opportunity comes the challenge of formatting multiple types of content in order to optimize subscribers' viewing experiences. The Entropic-Zenverge reference design enables faster than real-time transcoding and versatility that will be critical to enabling subscriber content re-purposing."

In addition to its collaboration with Zoran, Entropic has developed an active MoCA 2.0 ecosystem, delivering innovative solutions that enable Pay-TV service providers to optimize subscriber value. Entropic will be highlighting many of these solutions at The Cable Show 2011, booth #563, June 14-16, at McCormick Place in Chicago.

About Zenverge
Founded in 2005, Zenverge is a fabless semiconductor company devoted to accelerating consumer access to next generation digital content and services. The company is a leading developer of Advanced Media ICs built around the patented ZEN architecture, a core technology for next generation digital media devices. The company is based in Cupertino, California. For more information please visit the company website: www.zenverge.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, OEMs and consumer electronics 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 and 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 technology into products of OEMs, and statements regarding Actiontec's leadership in delivering MoCA enabled devices in conjunction with Entropic products or in any of the applications or markets mentioned herein, and statements regarding the anticipated benefits from the collaboration between Entropic and Actiontec.  Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause Entropic's and/or Actiontec'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 success of the collaboration between Entropic and Actiontec, which will depend, in part, on each company continuing to devote sufficient resources to achieve the goals of the collaboration; the ability of both Entropic and Actiontec to successfully address technical challenges and introduce new and enhanced products on a timely basis; risks associated with market acceptance of new products developed by Entropic and Actiontec; the risk that the market for high-definition television-quality video and multimedia content delivery solutions may not develop as anticipated; the effect of intellectual property rights claims; the effects of competition, including the risk that other wireline or wireless technologies may achieve greater market acceptance than solutions developed by Entropic or Actiontec; and other factors discussed in the "Risk Factors" sections of Entropic's Quarterly Report on Form 10-Q for the three months ended March 31, 2011. All forward-looking statements are qualified in their entirety by this cautionary statement. Entropic and Actiontec are providing this information as of the date of this release and do not undertake any obligation to update any forward-looking statements contained in this release as a result of new information, future events or otherwise.

Entropic Contacts:

Investor Contact:
Debra Hart
Director, Investor Relations
858.768.3852
debra.hart@entropic.com

Media Contact:
Robbin Lynn Chris Fallon
Marketing Communications Manager
858.768.3673
robbin.lynn@entropic.com

Chris Fallon
Ruder Finn for Entropic Communications
212.715.1691
fallonc@ruderfinn.com

Afsoun Mobini
Senior Manager, Corporate Programs & Communications, Zenverge
408.844.4774
corporate.communications@zenverge.com