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Entropic Communications, Inc. (Nasdaq:ENTR), a world leader in semiconductor solutions for the connected home, announced today that the Compensation Committee of its Board of Directors approved the grant under its 2012 Inducement Award Plan (the "Plan") of stock options to purchase 20,000 shares of common stock and 68,200 restricted stock units ("RSUs") to five newly hired non-executive employees in connection with Entropic's previously-announced acquisition of assets from PLX Technology, Inc. The stock options and RSUs will be granted on August 6, 2012, consistent with the Entropic's policy for grants of equity compensation to newly-hired employees. The stock options will have an exercise price per share equal to the fair market value of Entropic's common stock on the grant date, and vest over four-years, with 25-percent of the shares subject to the stock option vesting on the one-year anniversary of the vesting commencement date and the remainder of the shares vesting in equal monthly installments over the 36-months thereafter. Of the 68,200 RSUs granted, 25,200 will vest in equal annual installments over a four-year period from the vesting commencement date. The remaining 43,000 RSUs will become fully vested after the 18-month anniversary of the vesting commencement date. All vesting is subject to the continued service relationship of the employee with Entropic and each award has a 10-year term and is subject to the terms and conditions of the RSU agreement pursuant to which the RSU was granted.

In addition, the Compensation Committee of Entropic's Board of Directors also approved a grant under its 2012 Inducement Award Plan to Mr. Charlie Lesko, senior vice president, Worldwide Sales of a stock option to purchase 192,000 shares of common stock and 81,000 RSUs under the Plan. The stock option and RSUs were granted to Mr. Lesko on July 23, 2012, his date of hire. The stock option has an exercise price per share equal to $5.62, the fair market value of Entropic's common stock on the grant date, and vests over four-years, with 25-percent of the shares subject to the stock option vesting on the one-year anniversary of the vesting commencement date and the remainder of the shares vesting in equal monthly installments over the 36-months thereafter. Of the RSUs awarded to Mr. Lesko 51,000 shall vest in equal annual installments over a four-year period from the vesting commencement date, and the remaining 30,000 will vest 50-percent following the one-year anniversary of the vesting commencement date and 50-percent following the second-year anniversary of the vesting commencement date. Vesting for both the stock option and RSUs is subject to Mr. Lesko's continued service relationship with Entropic and each award has a 10-year term and is subject to the terms and conditions of the stock option and RSU agreements pursuant to which they were granted. 

Each of these RSUs and stock options were granted as inducements material to the new employees entering into employment with Entropic in accordance with NASDAQ Listing Rule 5635(c)(4).

About Entropic Communications

Entropic Communications, Inc. (Nasdaq:ENTR) is a leading global provider of silicon and software solutions to enable connected home entertainment. The Company transforms how traditional HDTV broadcast and streaming video content is seamlessly, reliably, and securely delivered, processed, and distributed into and throughout the home. Entropic's next-generation home connectivity and set-top box system-on-a-chip (SoC) solutions enable Pay-TV service providers to offer consumers a more captivating whole-home entertainment experience by delivering new, high-performing ways to connect, engage, and enjoy multimedia content. For more information, visit Entropic at: www.entropic.com.

The Entropic Communications logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4255

CONTACT: Entropic Investor Contact:
         Debra Hart
         +1 858.768.3852
         debra.hart@entropic.com
         
         Entropic Media/Industry Analyst Contact:
         Chris Fallon
         +1 858.768.3827
         chris.fallon@entropic.com