Conexant Reports Financial Results for the Fourth Quarter of Fiscal 2007

Company also Announces Restructuring and Expense-reduction Actions

NEWPORT BEACH, Calif. — Conexant Systems, Inc. (NASDAQ: CNXT), a worldwide leader in semiconductor solutions for broadband communications and the digital home, today announced financial results for the fourth quarter of fiscal 2007 that were consistent with the expectations established at the beginning of the quarter. In addition, the company announced that it will terminate further investments in “stand-alone” products for wireless networking but will continue to support DSL gateway solutions that incorporate wireless-networking capability. During the quarter, Conexant also completed a series of restructuring actions that will result in significantly reduced core operating expenses beginning in the current quarter.

Financial Results

Fourth quarter fiscal 2007 revenues were $183.9 million, including a non-recurring royalty of approximately $4 million related to an existing license agreement. Core gross margins were 44.7 percent of revenues. Core operating expenses were $90.3 million. The core operating loss was $8.0 million, and the core net loss was $18.5 million, or $0.04 per share.

Wireless Networking

Effective immediately, Conexant is discontinuing further investment in standalone wireless networking product development and will eliminate approximately 140 positions worldwide. Beginning in the second quarter of fiscal 2008, the company expects these actions to save approximately $5 million in quarterly operating expenses.