CLARIPHY COMMUNICATIONS DOUBLES DESIGN CAPABILITIES, ESTABLISHES DEVELOPMENT CENTER IN ARGENTINA

Untapped Pool of Engineering Talent and the Development Team’s Proven Execution are Key Drivers

Irvine, CA - June 21, 2006 - ClariPhy Communications, Inc., a fabless semiconductor company specializing in high speed communications ICs, announced today that it has completed the incorporation of its Argentinean development center near the National University of Cordoba. The development center doubles ClariPhy’s design capabilities and accelerates development of 10Gbit/s mixed signal and other high speed integrated circuits (IC).

“ClariPhy is built on world-class engineering talent. The team assembled in Argentina has made a significant contribution to the development of our first product, a 10Gbit/s physical layer device (PHY) for use on installed multi-mode fiber networks,” said Dr. Paul Voois, President and CEO of ClariPhy. “Based on its history of execution and on the exceptional engineering talent in Cordoba, I am confident that our team there will continue to play a key role in ClariPhy’s success.”

Known as the Silicon Valley of Argentina, Cordoba is the site of development centers for several Fortune 500 companies. The National University, with over one hundred thousand students, is a relatively untapped pool for engineering talent. Additionally, Argentina has only a four hour time difference with Pacific Daylight Time, compared with 12.5 hours for India and 15 hours for China greatly improving overall collaboration and communication.
“Being an Argentinean native and having sponsored the establishment of ClariPhy’s subsidiary, I am very pleased to formally welcome the team as ClariPhy Argentina,” stated Dr. Oscar Agazzi, vice president and chief systems architect of ClariPhy, and president and CEO of ClariPhy Argentina S.A. “This is an exciting opportunity to work on some of the most advanced technologies in the communications industry. ClariPhy’s commitment to establishing a world-class development center in Argentina is as progressive as the products we are delivering.”

About ClariPhy

ClariPhy Communications, Inc. is a fabless semiconductor company that was founded in 2002 and is based in Irvine, California. The company is developing high-speed ICs targeting 10-Gbit/s networks in enterprise backbone and enterprise data center environments. ClariPhy's ICs will enable vendors to offer products to IT management that will significantly improve performance and lower cost. ClariPhy has secured $13M in Series A financing led by Norwest Venture Partners (NVP), with Onset Ventures and Allegis Capital also participating. Additional information on the company can be found at www.clariphy.com.

ClariPhy Company Contact:

John O'Neill
Vice President, Marketing
949-861-3074 - Ext. 233
john.oneill@clariphy.com

ClariPhy Media Contact:

Tom Price - The Bernard Group
Office: 512-327-2195
Cell: 512-415-7744
tprice@bernardgroup.com