Intellon Introduces New Firmware for BPL Access and Smart Grid Applications Using HomePlug AV-Class Products

- Frequency Division Multiplexing (FDM) feature in new firmware release provides better spectral efficiency.

Orlando, Fla., December 11, 2008 - Intellon Corporation (Nasdaq: ITLN), a leading provider of HomePlug®-compatible integrated circuits (ICs) for home networking, networked entertainment, Ethernet-over-Coax (EoC) and smart grid applications, today announced the introduction of a new firmware release for its HomePlug AV (HPAV) powerline chipsets. Intellon's HPAV integrated circuits are already deployed in high volume for in-home powerline networking. The new release adds a Frequency Division Multiplexing (FDM) capability to the Intellon feature suite. FDM will make it easier to use HomePlug AV-based solutions for Broadband over Power Line (BPL) communications on outdoor power lines and Smart Grid applications.

The FDM technology divides the available communications spectrum (2.0 - 28 MHz) into smaller sub-bands, allowing pole-top repeater units to communicate both up- and down-stream in full-duplex mode. Because the repeaters can send on one sub-band while receiving on another, better spectral efficiency is obtained in high user-density environments. Intellon employs Orthogonal Frequency Division Multiplexing (OFDM) tone masking as opposed to other solutions which use a variable OFDM symbol length. Field tests have demonstrated the efficacy of Intellon's approach.

"The new firmware release allows Intellon to better meet the unique needs of BPL access and utility firms using our existing line-up of HomePlug AV-based chipsets," said Rick Furtney, COO and president of Intellon. "Because these chips are already produced in high volume for in-home powerline networking, the new solution brings increased economies of scale to BPL access and smart grid applications."

About Intellon Corporation
Intellon (Nasdaq: ITLN) is a market leader in powerline communications, providing HomePlug® compliant and other powerline integrated circuits for home networking, networked entertainment, BPL access, Ethernet-over-Coax (EoC), smart grid management and other commercial applications. Intellon created and patented the baseline technology for HomePlug 1.0, and is a major contributor to the baseline technology for the 200-Mbps PHY-rate HomePlug AV powerline standard. With more than 23 million HomePlug-based ICs sold, Intellon is the market share leader in the HomePlug IC market. The Company was founded in 1989 and is headquartered in Orlando, Florida, with offices in Ocala, Florida, and San Jose, California.

Cautionary Note Regarding Forward-Looking Statements:
All statements included or incorporated by reference in this release, other than statements or characterizations of historical fact, are forward-looking statements. These forward-looking statements include, but are not limited to, assertions regarding the use of the new firmware and Intellon HomePlug-based ICs either on a stand-alone basis or in any customer products or services or in any of the other applications or markets mentioned herein. Actual future results could differ materially from those anticipated as a result of certain risks and uncertainties. These factors include, but are not limited to, the risk that the market for powerline communications products, including Intellon ICs, may not develop as expected; the risk that Intellon may be unable to manage its growth effectively; uncertainties associated with competitive pressures, technical challenges and changes in industry standards; customer concentration and changes in customer demand and product mix; fluctuations in the availability and pricing of third party products and services used to manufacture, assemble and test Intellon's products; problems or delays in the fabrication, assembly, testing or delivery of Intellon's products; and economic and political uncertainties in Intellon's markets, including the risk of continued volatility and uncertainty in global financial and commercial markets. These and other risk factors are described in detail in the Risk Factors section of Intellon's Form 10-Q dated November 13, 2008, as filed with the Securities and Exchange Commission. Intellon assumes no obligation to update the forward-looking information contained in this release.

Intellon and No New Wires are registered trademarks of Intellon Corporation. HomePlug is a registered trademark of the HomePlug Powerline Alliance, Inc. All other trademarks mentioned are the property of their respective owners.
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