ENTROPIC COMMUNICATIONS TO ACQUIRE RF MAGIC

Combined Company Extends Leadership in Connected Home Entertainment

San Diego, CA, April 10, 2007-Entropic Communications, Inc., the leader in home networking for digital entertainment, announced today that it has signed a definitive agreement to acquire RF Magic, Inc., a leading developer of broadband radio frequency (RF) 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 market for connected home entertainment.

The new entity will retain the Entropic Communications name. Patrick Henry, Entropic's current president and CEO will be the CEO of the merged company. Mark Foley, RF Magic's current president and CEO will become the president and COO of Entropic Communications once the deal closes.

"This merger brings together two independently successful companies in one of the fastest growing segments of the semiconductor market. We can now offer customers a comprehensive product portfolio for the connected home entertainment market," stated Patrick Henry, president and CEO of Entropic.

"It's a very natural and ideal fit for both of us. We are both focused on delivering multimedia content into and around the home and have developed two exceptionally talented teams with core competencies not only in chip design but also in systems level design," added Henry.

"With our combined domain expertise in satellite, telco and cable operator-based deployments, we are confident that we have the team in place to take advantage of the market opportunities, much more so than if we remained separate entities," said Mark Foley, president and CEO of RF Magic. "This merger comes at a time when both companies have strong revenue growth and have established themselves and their products as leaders in their respective markets."

"The market for home entertainment - from delivery of rich entertainment services from carriers to the in-home distribution of personal or professional content - is rapidly moving to a new phase where consumers demand flexibility in where and when they consume it," said Mike Wolf, principal analyst, ABI Research. "The merger of these two companies brings together many pieces of the puzzle being required by systems OEMs, video service providers and entertainment companies to effectively compete in this new environment and well positions the new company to serve their clients."

"The common market focus coupled with their complementary systems expertise positions Entropic to be a major player in the connected entertainment space," said Steve Rago, IPTV and media networking analyst for iSuppli.

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.

About RF Magic, Inc.

RF Magic, Inc. (www.rfmagic.com) is a fabless semiconductor company on the forefront of designing complex, highly integrated broadband radio frequency (RF) systems on a chip integrated circuits targeting high volume, high growth consumer markets, including consumer broadband and digital broadcast entertainment. RF Magic applies RF integrated circuit (IC) design, broadband RF systems, and digital communications systems expertise to the development of a diversified portfolio of patented RFIC solutions. The company is headquartered in San Diego, CA with an additional design center in Nice, France. Further information on RF Magic can be found at www.rfmagic.com. RF Magic, RF Systems and the RF Magic logo are trademarks of RF Magic, Inc.