[0] Telaxis FiberLeap Capability Confirmed In Bechtel Lab; Product for Network Edge Extends Metro Fiber Reach.

Business/Technology Editors

SOUTH DEERFIELD, Mass.--(BUSINESS WIRE)--Jan. 9, 2002

Bechtel Telecommunications, a unit of Bechtel Corporation and a leading network engineering and construction firm, and Telaxis Communications Corporation (Nasdaq:TLXS - news), today announced results of testing that validates Telaxis' FiberLeap(TM) fiber optic network extension product. Testing conducted at the Bechtel Telecoms Training, Demonstration, and Research (TDR) Laboratory confirms the FiberLeap(TM) product's ability to transmit optical signals at OC-12 data rates (622 Megabits per second) via a wireless link for "last-mile" connections to fiber optic networks.

FiberLeap(TM) is designed to extend the reach of fiber optic networks through wireless connections where installation barriers and cost make installing additional fiber connections less desirable. FiberLeap(TM) access units form a wireless link designed to function, and to be managed and serviced, as if it were a length of fiber optic cable.

"The fiber network simulation and rigorous analysis conducted at our TDR Lab

confirmed the operational characteristics of FiberLeap(TM) access units in a variety of network environments," said Bechtel Telecoms Chief Technology Officer Jake MacLeod. "Testing at our lab specifically proved the transparency of the FiberLeap(TM) product in SONET, ATM, and Ethernet environments. This transparency allowed FiberLeap(TM) to provide `last-mile' connectivity to fiber optic networks."

"Solving the `last-mile' connectivity problem is the first order of business to enhance the value of existing fiber infrastructure," said Steve Ward, Telaxis Executive Vice President of Marketing and Sales. "Installed fiber rings currently connect to less than 10 percent of business buildings in metropolitan markets due to cost, right-of-way, and other barriers. Low-cost wireless connections from a fiber ring distribution point can greatly increase the market addressable by the existing fiber ring. Our FiberLeap(TM) product family will use Telaxis' high-frequency, millimeter-wave expertise to provide that connection reliably."

Ward continued, "We chose Bechtel to perform the first independent verification of the FiberLeap(TM) product due to Bechtel's ability to simulate metropolitan environments and a wide range of distribution and receiver options in its TDR Lab."

The initial FiberLeap(TM) product, operating in the unlicensed 60 GHz band, is designed to deliver voice, video, and data signals from fiber optic network distribution points to wireless access units 500 to 1,000 meters away with 99.999 percent availability, without deterioration of signal, Ward said. Distances increase significantly with availability of 99.99 percent or lower. FiberLeap(TM) is also designed for fast, low-cost installation using industry-standard optical interfaces.

Bechtel's TDR Lab facilities provide support for wireless and wireline technologies including Voice over Internet Protocol (VoIP); Free Space Optical Networking; high-speed Ethernet; 2G/3G and CPE wireless network interfaces; voice, video, and data traffic and link budget engineering; ATM switching; PTP and PMP microwave; LMDS; MMDS; UNII, and IEEE 802.11a/ and b WANs. The TDR Lab will help carriers and equipment vendors to quickly integrate evolving technologies into their networks, and speed revenue generation.

About Bechtel Telecommunications:

Bechtel Telecommunications is a unit of Bechtel Corporation, a privately held company headquartered in San Francisco, with 50,000 employees, more than 50 offices worldwide, and 2000 revenues of $14.3 billion. Bechtel Telecommunications provides design, engineering, project management, and construction management for a full range of telecommunication systems, through major offices in London, Sao Paulo, Hong Kong, and the Frederick, MD world headquarters. For more information visit: www.bechteltelecoms.com.

About Telaxis Communications:

Telaxis is developing its FiberLeap(TM) product family to enable direct fiber optic connection to wireless access units and to transparently transmit fiber optic signals over a wireless link without the use of conventional modems. Taking advantage of Telaxis' high-frequency millimeter-wave expertise, the FiberLeap(TM) product family is being developed to use the large amounts of unallocated spectrum above 40 GHz to provide data rates of OC-3 (155 Mbps), OC-12 (622 Mbps), Gigabit Ethernet, and higher. For more information about Telaxis Communications Corporation, please visit its website at www.tlxs.com or contact the company by telephone at 413-665-8551 or by email at [e-mail]..

Statements in this press release that are not statements of historical facts, including statements regarding business outlook or expected performance or developments, are forward-looking statements that involve risks, uncertainties and assumptions. Actual results may differ materially from the results anticipated in these forward-looking statements. Factors that could cause or contribute to such differences include, without limitation, developments in this relatively new industry and in the larger economy; difficulties inherent in entering new markets and business areas and in establishing new product lines; difficulties or delays in developing new or improved products and new business or product lines; difficulties or delays in developing, manufacturing, and supplying new products with the contemplated or desired features, performance, cost, and other characteristics; difficulties in estimating costs of developing and supplying products; difficulties in developing, manufacturing, and supplying products in a timely and cost-effective manner; lack of market acceptance and success of broadband wireless systems and products, including the current and contemplated products described in this release; difficulties in obtaining customers; dependence on a limited number of customers; the impact of competitive products and pricing; difficulties in attracting and retaining qualified personnel; inability to protect proprietary technology; the potential for intellectual property infringement, warranty, product liability and other claims; lack of sufficient capita, and limited ability to predict future financial performance; fluctuation in quarterly results and stock price; difficulty in obtaining satisfactory performance from third-party manufacturers and suppliers; and governmental regulation. Further information on these and other potential factors that could affect actual results is included in periodic reports and filings made from time to time with the Securities and Exchange Commission, including on Form 10-K and Form 10-Q.

FiberLeap, Telaxis Communications and its logos are trademarks of Telaxis Communications Corporation. Other names may be trademarks or service marks of their respective owners.