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Entropic Communications Completes RF Magic Acquisition
Combined Company Extends Leadership in Connected Home Entertainment

San Diego, CA - July 2, 2007 -Entropic Communications, Inc., a leading technology solution provider for connected home entertainment, announced today that it has completed the acquisition of RF Magic, a leading developer of broadband radio frequency systems-on-a-chip. Terms of the deal were not disclosed.

The merging of the two San Diego-based semiconductor companies brings together established complementary technologies focused on the rapidly growing home entertainment networking market. The combined Entropic Communications now has a more comprehensive product portfolio, broader technical capabilities and the scale to compete more effectively in a fabless semiconductor model.

"We are pleased to welcome the RF Magic team into the Entropic Communications family," said Patrick Henry, CEO of Entropic Communications. "With our combined product line, we now have a breadth of technology solutions to enable connected home entertainment."

The combined Entropic brings together complementary core competencies and a product portfolio for delivering triple-play services of voice, video and data. The product portfolio now includes chipsets and software solutions for home entertainment networking, satellite channel stacking switches, high-speed broadband access over cable, wireless broadband access and DBS, cable and terrestrial tuner products.

About Entropic Communications

Entropic Communications, Inc., is the leading developer of LAN and WAN networking of multimedia for the connected home. Entropic's products allow consumers to easily share digital entertainment throughout the home, fundamentally changing the way content such as movies, music and images are stored and networked by consumers. For more information: www.entropic.com.

Susan Huberman
VP Corporate Communications
Entropic Communications
858/625-3200, ext. 348
shuberman@entropic.com

Roberta Silverstein
Gelphman Associates
408/416-6501
rsilver@gelphman.com