[0] Sheer Networks and Tivoli Systems Inc. Deliver Combined Solutions for Management and Control of Large Broadband Networks.

Business Editors/Technology Writers

SUPERCOMM 2000

New Company Develops Breakthrough Software,

Partners with Tivoli(R) to Support Service Providers

ATLANTA--(BUSINESS WIRE)--June 6, 2000

Sheer Networks Inc. (www.sheernetworks.com), an international telecommunications software startup, and Tivoli Systems Inc. (www.tivoli.com), today announced a strategic relationship to solve the problem of management and control of multi-service, multimillion-user public access broadband networks. Sheer Networks has developed breakthrough network management software that will provide unprecedented, end-to-end management capabilities for system-wide aspects of broadband digital networks.

Sheer's broadband management solutions will be integrated with Tivoli's architecture to provide the industry's most comprehensive broadband network control and surveillance solution. This combined effort will give network service providers the tools for advanced device state based provisioning and scalable broadband fault correlation in addition to end-to-end multi-layer, multi-domain visibility. The companies will also develop an integrated marketing program that leverages the differentiation of Sheer's breakthrough technology and the depth of the Tivoli product line. Tivoli's experience in systems integration and customization will further enhance the value proposition to service providers in the fast-growing broadband access markets.

Managing multi-layer, multi-vendor networks on a global scale requires a leap in technology beyond existing telecommunications, data communications and host management systems. Sheer Networks will achieve this level of scalability and functionality by using sophisticated "autonomous agent"-based engineering, which permits a single logical management platform to manage millions of objects. Sheer Networks will optimize the interaction between network and service management level tools and yield a system-level understanding with total, real-time visibility of all software and hardware layers of the network. The model allows for dramatic scalability while providing the necessary focus required for non-shallow management of each domain, device or network layer. The Sheer framework absorbs changes in technology and equipment used in the infrastructure and scales effortlessly.

"Sheer Networks will provide visibility, scalability, control and stability on a worldwide scale and will enable IP applications for service providers based on state-of-the-art network intelligence technology," said Sharon Barkai, president and CEO of Sheer Networks. "Sheer's powerful new approach, combined with Tivoli's well-known expertise in technology management, will redefine the service management landscape. Together, we will deliver best-of-breed, multi-vendor, multi-level solutions that truly maximize the full capabilities of current and future networking equipment and software."

"The service provider marketplace is at a very competitive stage, and we expect competition will only increase as incumbent providers contend with an increasing number of new entrants. At the same time, broadband networks are taking off, and those networks need to be properly managed to reduce costs and provide a high quality experience for users," said Alan Bird, director of strategic development and marketing for Tivoli's Service Provider Business Unit. "Our alliance with Sheer Networks will deliver management solutions that help service providers rapidly deliver new revenue-generating services and differentiate providers from one another."

Sheer Networks' solution is intended for service providers such as competitive local exchange carriers (CLECs), incumbent local exchange carriers (ILECs), managed network service (MNS) providers and Internet service providers (ISPs). Sheer's framework will help these service providers increase revenues by enabling them to offer robust, customized, differentiated services quickly; improve customer satisfaction with service guarantees and service level agreements (SLAs); and minimize operational costs by automating complex management processes.

About Sheer Networks Ltd.

Sheer Networks Ltd. was founded in 1999 to solve the problem of management and control of multi-service, multimillion-user public access broadband networks. Sheer Networks is developing and implementing a software framework based on state-of-the-art network intelligence technology.

Sheer Networks Inc. is headquartered in the U.S. at 555 N. Mathilda Ave., Sunnyvale, Calif. 94086, phone [phone]; and in Israel at Herzliya Business Park, 8 Maskit St., P.O.B. 12838, 46733 Herzliya, Israel, phone: [phone]. For more information, visit. www.sheernetworks.com.

About Tivoli Systems Inc.

Tivoli software manages the foundations of e-business, extending the boundaries of traditional network and systems management from the data center across the Internet, from the desktop to pervasive devices. Leading companies around the world use Tivoli software, Tivoli Ready third-party products and Team Tivoli partner services to reduce the cost and complexity of managing heterogeneous IT environments. Tivoli solutions, encompassing management of security, storage, and mobile devices, are helping these organizations to create a technology infrastructure to support the next generation of business. For more information, visit Tivoli's World Wide Web site at http://www.tivoli.com.

Tivoli is a registered trademark or trademarks of Tivoli Systems Inc., an IBM company. All other company and product names may be trademarks of the respective companies with which they are associated. In Denmark, Tivoli is a trademark licensed from Kj0benhavns Sommer - Tivoli A/S.