ARCi Introduces Innovative Broadband Wireless System.

Business Editors/High-Tech Writers

CAMPBELL, Calif.--(BUSINESS WIRE)--July 17, 2000

Advanced Radio Cells Inc. (ARCi) announces today the introduction of its new broadband wireless Internet system.

ARCi has created the first proven and operational DOCSIS-based radio system operating in unlicensed wireless frequency bands. The patent pending technology is based on intellectual-property developed by ARCi which builds on the DOCSIS cable modem standard, enabling high-speed wireless Internet delivery to the home and small office. ARCi has partnered with Vyyo Inc., Cupertino CA to utilize Vyyo's enhanced DOCSIS+(TM) headend and wireless modem products, which have also been adopted by the newly formed Wireless DSL Consortium. The first field trials will be deployed at several domestic locations in California, and later in international locations, targeting areas where DSL, two-way cable and other broadband connections are difficult or impossible to find.

ARCi Executive VP Rick Melzig, who co-founded ARCi after a career in wireless systems with IBM, Cylink and NET, stated, "True ubiquitous wireless Internet connectivity will require a low cost, easy to install subscriber solution, as well as robust air interface and media access control (MAC). The ARCiNet(TM) system meets these requirements."

ARCi developed a wireless architecture that utilizes the DOCSIS baseband interface and MAC layer, which has been network proven over both cable and wireless broadband networks. The DOCSIS protocol ensures user data privacy and security across the network. ARCi builds on this DOCSIS system, and adds proprietary RF technology to address the interference and spectrum sharing considerations faced over unlicensed microwave frequencies.

James Bertonis, the company's CTO and radio system architect stated "Our medium- to long-term goal is a package with the antenna and radio in one easily mounted panel, which can operate over non-line-of-sight." The company is also developing a radio repeater terminal which will provide the necessary small radius signal coverage between a neighborhood and the central headend location, and allow indoor antenna connectivity. This effort is timely, given the current debates over which technology consumers will ultimately adopt to bring broadband into the home.

ARCi has not received major venture funding to date, and has assembled its design team using private and corporate financing. The business plan is carefully delineated, focusing on broadband wireless delivery over a variety of networks. ARCi is designing RF solutions, leaving baseband and MAC design out of its agenda. ARCi's business strategy requires working with antenna, semiconductor, modem OEM and headend equipment partners.

"We are a radio development and network engineering company, and in the future that could mean licensing RF technology to other equipment manufacturers and collecting service revenue fees from ISP's," said Stuart Price, an ARCi co-founder and industry consultant.

About ARCi

ARCi designs and develops broadband wireless delivery systems, for use over a range of radio frequency bands. Their first product integrates the DOCSIS protocol to operate over wireless transmission paths utilizing unlicensed radio frequency spectrum. For more information, visit the ARCi website at http://www.arcells.com.