Commenting on the third quarter, NetSilicon CEO Cornelius "Pete" Peterson said, "NetSilicon continues to capitalize on its NET+Works(TM) product line with another great quarter of customer wins. Approximately 55 new customers began developing products on the NET+Works platform in the third quarter, fiscal 2001. This brings NetSilicon's total customer base to approximately 280, an increase of nearly 25 percent over the second quarter." Although the intelligent networked device business is on track, during October 2000, several office imaging companies announced inventory buildups and simultaneously lowered sales projections due to an overall economic slowdown. Based on these factors, NetSilicon anticipates that office imaging revenue will decline by approximately 30% sequentially from the third quarter to the fourth quarter of fiscal 2001 and that fiscal 2002 office imaging revenues should be flat from the fourth quarter, fiscal year 2001 for at least the first half of the year and will experience modest growth for the balance of fiscal 2002. The Company expects that the decrease in office imaging revenue will result in an overall loss for NetSilicon in the fourth quarter of fiscal 2001. NetSilicon further anticipates returning to profitability in the first half of fiscal 2002 as the intelligent networked device market continues to grow and the office imaging market stabilizes and begins to recover. The Company plans to provide additional guidance for the fourth quarter of fiscal year 2001 and fiscal year 2002 during its financial results conference call on November 28, 2000. NetSilicon, Inc. (NASDAQ:NSIL) is a leading provider of Ethernet microprocessing solutions to manufacturers building intelligent, network-enabled devices. These solutions integrate system-on-silicon and software to provide a complete platform for Internet- and Ethernet-connected products. The NET+Works platform allows manufacturers to shorten their time to market, reduce development risk, lower costs, and free their engineers from the difficult task of integrating multi-vendor networking components. NetSilicon is enabling device intelligence and connectivity in a broad range of industries including office imaging, industrial automation, telecommunications, building controls, security and point of sale. NetSilicon's solutions are paving the way for the device-centric networks of tomorrow. For more information, visit www.NetSilicon.com....

NetSilicon Discusses Business Outlook for Fiscal 2001 and 2002