Network Hub optimizes broadband performance for SMBs.

Arcwave, Inc. May 27, 2004

Press Release Summary:

ARCXtend AX1255-SM Strand Mount Network Hub enables cable operators to deliver dynamically optimized, fixed wireless IP service. Product incorporates ARCSmart(TM) performance optimization engine and remote monitoring capabilities that enable seamless deployment into existing cable plant infrastructure. Wireless last mile solution also incorporates PureBurst(TM) Upstream Ingress Noise Suppression Technology, which eliminates noise interference problems.

Original Press Release:

Arcwave Introduces Industry's First Dynamically Optimized SMB Wireless Last Mile Solution For Cable Companies

ARCXtend AX1255-SM Leverages New ARCSmartTM Engine to Enable MSOs to Penetrate the $100 Billion Small to Medium Sized Business (SMB) Market

Campbell, CA - May 25, 2004 - Arcwave, Inc., the leader in providing wireless solutions for the cable industry, today announced the availability of the ARCXtend AX1255-SM Strand Mount Network Hub, the first product that enables cable operators to deliver a dynamically optimized, fixed wireless IP service to the small to medium sized business (SMB) market. The product incorporates Arcwave's new ARCSmartTM performance optimization engine and enhanced remote monitoring capabilities that enable a seamless deployment into existing cable plant infrastructure, giving cable operators a convenient platform for the delivery of high-speed data services to the lucrative SMB market. The AX1255-SM provides the lowest deployment price to performance ratio and the easiest installation and operation on the market.

The ARCXtend product family is the first wireless last mile solution that allows MSOs to quickly and cost-effectively penetrate a large portion of the SMB high-speed data market that has been previously unreachable due to cost, regulatory or deployment delay considerations. With the AX1255-SM, MSOs can increase their SMB "pass rates" in a given market by up to 70 percent within two months, without significant network buildout or disruption of plant operations. By setting a new benchmark in price, the AX1255-SM also enables cable operators to deploy their high-speed data services to a wider market in a shorter period of time. In most cases, ROI can be achieved within 12 months.

The AX1255-SM incorporates Arcwave's new ARCSmart Intelligent Operation Engine and the company's patent-pending PureBurstTM Upstream Ingress Noise Suppression Technology. It is the first fully programmable, remotely managed engine with an intelligent management capability that dynamically optimizes broadband traffic performance based on changing network traffic conditions. The engine is field upgradeable to provide the greatest amount of flexibility in controlling network operations. PureBurst utilizes exclusive technology to eliminate noise interference problems, allowing MSOs to send an upstream DOCSIS (Data Over Cable Service Interface Specification) channel over point-to-multipoint wireless links up to eight miles with no impact to existing cable networks. The AX1255-SM also includes the industry's largest number of available wireless channels providing superior interference immunity and system capacity to alternative solutions operating in the license-free spectrum.

Cable operators, with their extensive fiber networks and advanced IP service capability, are ideally positioned to target the eight million plus domestic SMB market and garner a significant share of the $100B they spend annually on voice and data services. While an estimated 90 percent of the SMB market is within close proximity to existing cable networks, an estimated 50 percent of the SMB market is currently not serviceable by cable operators due to the delay, expense and regulatory restrictions involved with laying new fiber or coaxial cable. In particular, "right of way" and local zoning issues often prohibit the use of aerial and/or trenched drops in commercial markets.

The AX1255-SM seamlessly integrates into a cable operator's network and operating infrastructure creating a wireless bridge for the transmission of the cable industry's DOCSIS standard signals between the wired network and one or more customer sites. The product's network hub uses cable-industry technology and communications protocols, including SNMP, enabling direct integration with existing network infrastructure and network management systems. With "plug and play" and sophisticated management capabilities, including field upgradeable and configurable software and full SNMP support, the product is easily installed within two hours by a cable technician. The intelligent operation capability of the AX1255-SM also works to continually maximize up and downstream throughput while maintaining data integrity and service level agreements without costly field maintenance by MSO technicians.

"A variety of factors - including cost, complexity and the need for underground or aerial connections - have placed thousands of businesses outside of cable's reach, but by only a matter of a few blocks," said Jeff Austin, director of product engineering and deployments for Comcast Online. "Comcast is trialing the AX1255-SM wireless solution as a means to help us overcome such challenges and further expand into a new and highly attractive market for our high-speed data services. In addition, its convenient 'plug-and-play' installation and new optimization engine can potentially help simplify installation and maintenance."

"The AX1255-SM is another example of how Arcwave is combining its background in the wireless industry with its understanding of the unique needs of cable operators to deliver revenue enhancing solutions that leverage their existing physical plant and network operations," said Steve Goldberg, CEO of Arcwave. "These solutions leverage the latest wireless standards including wireless DOCSIS, 802.11, 802.16d or 802.16e."

A free copy of the white paper, "Wireless Plant Extension for Cable Operators" that explains how Arcwave's line of wireless DOCSIS solutions can increase commercial revenues is available at arcwaveinc.com. Contact Arcwave directly for a custom economic analysis.

The AX1255-SM is available now directly from Arcwave. First customer packages start at under $3,500.

About Arcwave

Arcwave is the leading developer and provider of wireless plant extension solutions for the cable industry. Arcwave's products enable domestic and international multiple system operators (MSOs) to leverage the latest wireless technologies to extend the reach of their existing services and to increase service offerings within their current plant and operating infrastructure. The company has patented technology and experience in the wireless industry combined with a unique understanding of the MSO business model. Arcwave's solutions are designed for "plug and play" deployment and leverage existing and future technologies, such as Wireless DOCSIS (Data Over Cable Service Interface Specification), 802.11, 802.16d, and 802.16e. Arcwave customers consist of leading MSOs, including one of the top five national cable operators in the U.S. The company is funded by Mayfield, Venrock Associates, Lucent Venture Partners and SBV Venture Partners.

ARCell and ARCXtend are trademarks of Arcwave, Inc., and DOCSIS is a registered trademark of Cable Television Laboratories, Inc. All rights reserved. All other trademarks are the property of their respective holders.