ACT Networks Announces Sale of Its Wireless Network Systems Division to Signal Processors Ltd.

CALABASAS, Calif.--(BUSINESS WIRE)--June 23, 1999--

ACT Networks (NASDAQ:ANET) Wednesday announced the sale of its Phoenix-based Wireless Network Systems division to an affiliate of Signal Processors Ltd. (SPL).

Under the terms of the agreement, ACT will sell its L-band satellite modem technology, assets and inventory. SPL will support ACT's current satellite modem customers and deliver next-generation satellite solutions to the market. Terms of the sale were not disclosed.

"The sale of the Wireless Network Systems division will enable ACT to concentrate on its core strength -- voice and data access solutions for converged networks," said Andre de Fusco, president and chief executive officer of ACT Networks. "At the same time, by leveraging SPL's expertise, channel and support organizations, we can continue to offer our customers integrated solutions for satellite networks."

"We are pleased to get a jump-start on a new generation of products," said Mike Yeo, General Manager of SPL. "L-Band technology enables us to reduce the cost of the outside equipment by as much as 50% over traditional satellite communications solutions, and, at the same time, dramatically reduce the complexity of the satellite terminal."

ACT's NetPerformer multi-service access product line enables businesses to connect voice, fax, SNA (Systems Network Architecture), and LAN (Local Area Network) traffic over private and public Frame Relay or IP networks, which can be constructed over terrestrial or satellite links.

About ACT Networks

ACT Networks develops, manufactures, and markets Multi-Service Access products that enable the true convergence of voice, video, and data onto one managed network. Service providers and enterprise customers use the company's products to build converged networks that are bandwidth efficient, cost-effective and easy to manage.

The company's award-winning NetPerformer and ServiceXchange product lines incorporate its unique Packet Voice Technology (PVT), which includes advanced voice and data compression algorithms, enhanced switching and traffic management, and state-of-the-art telephony integration technologies, to serve enterprise and global carrier customers of all types.

For more information about ACT Networks, with headquarters in Calabasas, Calif., visit the corporate Web site at http://www.actnetworks.com.

About Signal Processors Limited (SPL)

SPL designs and manufactures satellite communications products including transceivers, modems, data broadcast receivers and antenna tracking controllers. SPL's technology and products are used worldwide by International PTTs, governments, military organizations and commercial private sector communications systems.

Note to Editors: ACT Networks and NetPerformer are registered trademarks of ACT Networks. All other trademarks mentioned in this document are the property of their respective owners.

This news release may contain projections or other forward-looking statements regarding future events and future financial performance of the company that involve risks and uncertainties. These statements are only predictions and actual events or results may differ materially as a result of a number of factors including, without limitation, the factors discussed in the company's most recent Reports on Forms 10-K and 10-Q under "Risk Factors" and the risks associated with the possibility that the market for the company's products will not continue to develop or that the company's products and capabilities will not address emerging market needs; the effect of increased competition; customer concentration and loss of any significant customer.