Ikanos Communications Selects eSilicon for Manufacturing Operations and Logistics

SUNNYVALE, CA and FREMONT, CA--(Marketwire - Dec 8, 2011) - eSilicon Corporation, the largest independent semiconductor value chain producer (VCP), and Ikanos Communications (NASDAQ: IKAN), a leading provider of advanced broadband semiconductor and software products, announced today that they have entered into a master services and supply agreement under which eSilicon will manage Ikanos' manufacturing operations and related logistics functions including supply chain management for Ikanos production products.

"Ikanos remains committed to offering our customers innovative and differentiated products," said Dado Banatao, Chairman, interim president and CEO of Ikanos. "With eSilicon, we have a proven partner that can help Ikanos streamline its ability to bring these advanced products to market."

Through this agreement, Ikanos will leverage a comprehensive manufacturing services offering from eSilicon including scheduling, production management, testing and other processes. The resulting efficiencies will allow Ikanos to focus its resources on new product development and increase the effectiveness of its logistics and operations functions. Ikanos will continue to manage all aspects of the customer interface, forecasting and ordering.

"eSilicon's patented eSilicon Access® production management system was specifically implemented to make it easy and efficient to manage manufacturing operations," said Jack Harding, president and CEO of eSilicon. "This allows our customers to focus their resources on architecting and designing their next-generation products and on bringing innovative solutions to end customers."

About Ikanos Communications
Ikanos Communications, Inc. (NASDAQ: IKAN) is a leading provider of advanced broadband semiconductor and software products for the digital home. The company's broadband DSL, communications processors and other offerings power access infrastructure and customer premises equipment for many of the world's leading network equipment manufacturers and telecommunications service providers. For more information, visit www.ikanos.com.

About Value Chain Producers
A value chain producer (VCP) is a company that collaborates with foundries, IP and service providers, EDA suppliers, and package, assembly and test operations in designing and producing chips for fabless IC, IDM and OEM companies. VCPs optimize the economics of customer value chains and enable customers to focus on their product differentiation and market growth.

About eSilicon
eSilicon, the largest independent semiconductor VCP, delivers ASICs to OEMs and fabless semiconductor companies through a fast, flexible, lower-risk path to volume production by deploying its comprehensive suite of design-through-manufacturing services and custom IP offerings. eSilicon serves a wide variety of markets including the communications, computer, consumer and industrial segments. www.esilicon.com

eSilicon - Enabling Your Silicon Success™

eSilicon and eSilicon Access are registered trademarks, and the eSilicon logo and Enabling Your Silicon Success are trademarks, of eSilicon Corporation. Ikanos Communications, Ikanos, and the Ikanos logo are among the trademarks or registered trademarks of Ikanos Communications. All other trademarks mentioned herein are properties of their respective holders.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This press release contains forward-looking statements that are subject to risks and uncertainties concerning Ikanos Communications, including statements regarding its commitment to offering its customers innovative and differentiated products, the anticipated benefits of eSilicon's services and its commitment to manage the management of customer interface, forecasting and ordering. Actual events or results may differ materially from those described in this document due to a number of risks and uncertainties. These potential risks and uncertainties include, but are not limited to, the success of our relationship with eSilicon, our ability to deliver full production releases of our newer products and the acceptance of those products by our customers, the continued demand by telecommunications service providers for specific xDSL semiconductor products, the failure of service providers to implement deployment plans on schedule or at all, our continued ability to obtain and deliver production volumes of new and current products and technologies, our ability to develop commercially successful products as a result of our current research and development programs, and unexpected future costs and expenses. In addition, for a more extensive discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see the section entitled "Risk Factors" in Ikanos' most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, as well as other reports that Ikanos files from time to time with the Securities and Exchange Commission. Ikanos is under no obligation to update these forward-looking statements to reflect events or circumstances subsequent to date of this press release.