3G Mobile IP Phones are Closer to Reality with World's First Header Compression Product Suite For Wireless Internet.

Business Editors/High-Tech Writers

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Nov. 15, 2001

IP Header Compression Pioneer Effnet Offers Market's First

Comprehensive Solution

Effnet Inc., a leading developer of Internet Protocol (IP) header compression technologies, announced the release of its new EffnetEdge(TM) Header Compression Suite for Mobile Networks today. The software, scheduled to begin shipping in the fourth quarter of this year, incorporates the world's first commercial implementation of the Robust Header Compression (ROHC) protocol from the Internet Engineering Task Force (IETF).

"Effnet has played a leading role in the development of header compression standards, and now we have delivered the first commercial header compression software for handsets and networks to the 2.5G and 3G market. The Effnet ROHC integrated test environment has proven itself by validating interoperability with major telecom manufacturers," says Orjan Grinndal, Effnet CEO. "We can now provide every mobile telephony player with a unique product that enables them to design IP header compression into existing and future UMTS-compliant products. This reaffirms our commitment to give customers a competitive edge -- the EffnetEdge."

A mandatory component of the ETSI (European Telecommunications Standards Institute) and 3GPP (Third Generation Partnership Project) endorsed UMTS standards, header compression increases bandwidth and spectrum efficiency by eliminating redundancy from the IP packet header while leaving the data payload unchanged. Header compression is especially critical for applications that have large streams of small data packets, such as voice-over-IP and multimedia applications, including gaming and interactive video.

Recent industry initiatives aimed at accelerating the adoption of 3G, such as the open mobile services architecture announced this week, will also accelerate the demand for IP header compression in mobile networks. By enabling 3G mobile terminals and services to fully interoperate, these initiatives will allow full-scale interactive multimedia services to be sold into mass markets.

Product Suite Includes Multiple Protocols and Validation Environment

The EffnetEdge Header Compression Suite provides mobile telephony operators, handset OEMs, infrastructure equipment manufacturers, and component vendors their first opportunity to purchase and evaluate header compression technology that satisfies the UMTS standards for 2.5G and 3G mobile telephones. The software includes all the IP header compression protocols specified by UMTS Releases 3, 4 and 5. The included products, Effnet ROHC (Robust Header Compression) and Effnet IPHC (Internet Protocol Header Compression), implement the official IETF standards RFC 3095 and RFC 2507, respectively. The ROHC standard in particular, is designed to perform under the demanding requirements of wireless communication links, which are subject to high latency, long round-trip times and lossy transmissions. Header compression can reduce total IPv6 packet size by as much as 75%, increasing bandwidth and interactive response while reducing latency and packet loss.

In addition to a complete software reference implementation of all relevant header compression protocols, the EffnetEdge Header Compression Suite for Mobile Networks provides a comprehensive validation environment that facilitates testing and verification of the header compression software within the customer's target architecture. The validation functions allow designers to exercise their header compression implementation with numerous test cases, which represent statistically common channel conditions.

Header Compression Expands Bandwidth Capacity

Designed to be embedded into wireless base stations and handsets, EffnetEdge Header Compression significantly improves IP packet transmission over links with low speeds and long delays in high noise environments. Header compression increases effective data throughput, allowing carriers to transmit as much as 300% more IP traffic by reducing the bandwidth requirement for IP packet headers. Valuable link capacity is then freed for other uses, allowing wireless network operators to expand and differentiate their services, without requiring an additional investment in network infrastructure to increase the available bandwidth.

About Effnet

Effnet innovates and licenses award-winning key technologies that resolve data speed, efficiency and security challenges in Internet Protocol (IP) networking and IT security. Effnet's IP packet processing technology enables optimum performance. Founded by leading researchers in the field of header compression, the company has 60 employees and operates in Stockholm, and Lulea, Sweden; in Silicon Valley, California and Tucson, Arizona. Effnet Group AB shares are traded on Sweden's Nya Marknaden (symbol:EFFN). Read more about Effnet at www.effnet.com.

Note to Editors: Effnet, the Effnet logo and EffnetEdge are trademarks or registered trademarks of Effnet AB and Effnet, Inc. Other brand names may be the trademarks of their respective owners.