DiBcom Raises EUR 24.5M Round to Extend Mobile TV Leadership

DiBcom Raises EUR 24.5M Round to Extend Mobile TV Leadership

PARIS, August 29/PRNewswire/ --

- Welcomes Five New International Investors

- Partech International Leads the Round of Financing

DiBcom, a fabless semiconductor company specializing in
chipsets for mobile TV, is pleased to announce the closing of its fourth
round of financing for a total amount of EUR 24.5 million; the largest
venture-backed financing for a French IT company in 2005. Five international
investors have joined existing investors in the new capital round: Partech
International which leads this round of investment, Intel Capital, 3i, WI
Harper and UMC. This funding allows DiBcom to significantly expand its sales
and marketing presence in Asia and the United States, as well as extend its
mobile TV product roadmap.

Founded in June 2000 and headquartered in France, DiBcom
designs and markets semiconductors for the reception of Digital Television in
portable and mobile applications. DiBcom's technology has been used by a
number of tier 1 customers in the automotive, notebook PC, cell phone, and
portable media player (PMP) market segments, who leverage the superior
performance, power and integration capabilities of DiBcom's products.

Digital Terrestrial TV has been launched across all European
and Asian geographies that have adopted DVB-T as a standard for digitization
of TV signals. Concurrently, with most broadcasters rapidly extending
existing DVB-T infrastructure to deliver programming onto mobile phones and
other hand-held devices, DiBcom has taken clear pole position in offering the
highest performance DVB-H solutions to handset vendors worldwide.

"It's an exciting time in mobile communications and DVB-H is an important
technology for the industry," stated Dr. Jon Peddie, President Jon Peddie
Research, the leading market research firm in multimedia, based in Tiburon
California. "The demonstration of DiBcom's chipset in a mobile phone is a
major milestone and a clear indication that 2005 is shaping up to be the year
of mobile TV."

Growth and Continued Technology Leadership

The main objective of the new funding round is to further
accelerate DiBcom's growth strategy. To that end, the company has invested in
Sales and Marketing as well as continued Research & Development, aimed at
ubiquitous integration of DiBcom's technology into any type of device
benefiting from mobile TV reception.

"DiBcom was the first company to target mobile-TV receivers
using broadcasting technology, and introduced the first mobile DVB-T receiver
back in 2002. With this clear technology lead and strong financial backing,
we are confident DiBcom will further extend its position in the industry,"
says Yannick Lévy, CEO of DiBcom.

Financial and Strategic Funding Partners

DiBcom welcomes the arrival of three new value-added venture
capital investors as shareholders.

For over more than 20 years, Partech International "Venture
Model" has been instrumental in building innovative start-ups into global
leaders. Thanks to its international presence, Partech International will
assist DiBcom in its global expansion.

"We at Partech believe broadcast TV on mobile and portable devices will
shortly be a huge success across many segments of customers through many
different types of devices from car TV to handset. We are very excited to be
part of this venture and to assist DiBcom in becoming a leader in mobile
Digital TV," states Jean-Marc Patouillaud, General Partner- Partech
International.

3i is bringing its huge network of customers and contacts
worldwide as well as its unique experience of investment in fabless
semiconductor companies (recently witnessed by the successful IPO of CSR on
the London Stock Market). Ian Lobley, Senior Partner, is joining DiBcom's
Board of Directors.

WI Harper will also make DiBcom benefit from its network of
customers and contacts, especially in Asia.

After Freescale Semiconductor, DiBcom also invited two new
strategic participants to join its investors group. UMC, a world-leading
semiconductor foundry headquartered in Hsinchu, Taiwan, has been a key
supplier to DiBcom for several years and will continue to provide superior
foundry services and allocation in order to support DiBcom's growth. Intel
Capital has identified in DiBcom a leading provider of digital TV solutions
for both the notebook and the mobile phone and will assist DiBcom in offering
its solutions to Intel's major customers in these markets.

"We are pleased to invest in DiBcom and support the efforts of
rolling out DVB-H for mobile TV on our Xscale handheld and Centrino notebook
platforms," said Sam Arditi, VP and general manager of Intel's Communications
Handheld Group. "DiBcom has been the first to market in DVB-H silicon for
handheld devices, and a leading DVB-T supplier to the automobile and notebook
PC market segments for several years. We see significant opportunities for
mobile TV in these platforms going forward."

Full Support by Existing Shareholders

The new investors join investors SGAM Alternative Investments,
Convergent Capital, Crédit Agricole Private Equity, Vertex Venture Capital
Israel, Cipio Partners, and Freescale Semiconductor all of whom reconfirmed
their support for DiBcom and its market opportunity with follow-on
investments.

"SGAM Alternative Investments is proud to have been the first
investor to work with a team of such high caliber. Since 2000, we have been
impressed by the team's track record of delivering high quality solutions on
time," said Xavier Lorphelin, Partner, SGAM AI. "We believe in the disruptive
potential of DVB to become a leading broadcast technology, especially as it
evolves from fixed to portable and mobile applications."

DiBcom was assisted by Clipperton Finance, an advisory firm
specializing in High-Tech and Media.

About DiBcom

DiBcom is at the heart of mobile TV. As a fabless
semiconductor company that designs high-performance chipsets, DiBcom enables
low-power mobile and portable TV reception everywhere and at speeds exceeding
150 mph. The company's solutions are used in automotive, PC/peripheral and
handheld device applications. DiBcom has extensive experience solving
real-world mobile digital terrestrial television (DTT) reception problems and
has overcome the main technological barriers to high-quality service. The
company has developed patented algorithms and architecture for fast and
accurate channel estimation and high Doppler compensation. Its chipsets are
compliant with the current worldwide Digital Video Broadcast standards DVB-T
and DVB-H.

For more information, please visit www.dibcom.com

Source: DiBcom

For more information, please contact: In the U.S: Agnes Hu, Brodeur, Office: +1-415-593-2265, ahu@brodeur.com; In France: Ines Brudey / Gypsie Leroy-Bloch, Pleon, Tel: +33-(0)1-53-04-23-00, ines.brudey@pleon.com - gypsie.leroy-bloch@pleon.com

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