Focus on Broadband, Embedded and Wireless Sectors

    MILPITAS, Calif., Feb. 8 /PRNewswire/ -- PCTEL, Inc. (Nasdaq: PCTI), a
leading provider of personal connectivity and Internet access technology,
today announced a series of actions to streamline support for its legacy
voiceband business and sharpen its focus on broadband, embedded and wireless
sectors.  These measures are part of a restructuring program to return the
company to early profitability and operational effectiveness, and include an
11 percent reduction in staff worldwide, a hiring freeze and operating expense
controls.
    After seventeen consecutive profitable quarters, PCTEL recently posted a
loss for the quarter ended December 31, 2000.  At that time, the company
indicated it would align its operating expenses to meet current market
conditions and return the company to its prior financial performance
standards, while continuing to focus on emerging growth segments of its
business.
    "These actions should be viewed in the context of an overall strategic
restructuring of the company, which will include forthcoming management
changes," stated Bill Roach, president and chief operating officer of PCTEL.
"We believe these steps, which will improve the cost-effectiveness of our
legacy PC modem business, coupled with our investment in off-shore development
capacity and our focus on new opportunities in broadband connectivity,
embedded and wireless markets, will properly position PCTEL for the future."
    On January 17, PCTEL announced the acquisition of BlueCom Technology, a
Taiwan-based MMX signal-processing (MSP) technology firm.  BlueCom will assume
primary responsibility for supporting PCTEL's legacy analog connectivity
business.  This restructuring of responsibilities within the company allows
management to assign senior engineering resources at its Milpitas operation to
its new initiatives in wireless and broadband.  It also created overlapping
responsibilities that the company is addressing with the force reduction.
    "Force reductions are always painful," Roach continued.  "On the other
hand, we feel confident that this new structure will result in a more
cost-effective voiceband business and help us focus on new product initiatives
that will really make a difference to our future.  These actions, along with
anticipated management changes, will provide a solid base on which we can
scale PCTEL to become a larger company."

    ABOUT PCTEL
    PCTEL, founded in March 1994, is driving the evolution of innovative,
cost-effective personal connectivity solutions including analog soft modems,
digital broadband, home networking, high-density carrier-side and embedded
Internet access technology.  The company's market leadership has led to a
wide-ranging and comprehensive portfolio of more than 43 broadband and analog
communications patents, including the key and essential patents for HSP modem
technology.  PCTEL products are available to PC and data communications
equipment manufacturers, as well as a variety of vertical market OEMs.  PCTEL
is located at 1331 California Circle, Milpitas, Calif., 95035.
Telephone:  408-965-2100.  Fax:  408-895-0178.  For more information on PCTEL
products, visit the PCTEL website at http://www.pctel.com .

    Safe Harbor Statement
    This press release contains "forward-looking statements" as defined in the
Private Securities Litigation Reform Act of 1995, regarding early
profitability, management changes, investment in off-shore development
capacity, new opportunities in broadband connectivity, embedded and wireless
markets and new product initiatives.  Actual results may differ materially
from those projected as a result of certain risks and uncertainties.  These
risks and uncertainties include, but are not limited to; the demand for
personal computers and the markets addressed by the company's and its
customers' products; the cyclical nature of the semiconductor and PC
industries; demand for and market acceptance of new alternative Internet
access devices; the ability to develop and implement new technologies and to
obtain protection for the related intellectual property; as well as other
risks and uncertainties, including but not limited to those detailed from time
to time in the company's Securities and Exchange Commission filings.  These
forward-looking statements are made only as of the date hereof, and the
company disclaims any obligation to update or revise the information contained
in any forward-looking statements, whether as a result of new information,
future events or otherwise.

SOURCE  PCTEL, Inc.








 
Web site:  http://www.pctel.com
 

 
CONTACT: Andrew Wahl, Chief Financial Officer, 408-965-2200, or
Richard F. Haas, Director, Corporate Marketing, 408-965-2159, or
richard_haas@pctel.com, both of PCTEL, Inc.