Adaptive Broadband Signs $20-Million Contract With Fuzion Technologies for AB-Access Wireless Data Networking Equipment.

SUNNYVALE, Calif.--(BUSINESS WIRE)--Sept. 27, 1999--

Nation's First Commercial End-Users of AB-Access to Log On

By September 30; AB-Access Defies Tropical Storm Harvey

ADAPTIVE BROADBAND(TM) CORPORATION (Nasdaq National Market:ADAP) announced today it has signed an initial $20-million contract with Fuzion Technologies, Boca Raton, FL., for AB-Access(TM) wireless data networking equipment.

It will be deployed over the next three years, beginning in Florida, for business users of the Internet. Fuzion is the first carrier in the industry to commercially install this new wireless equipment, which provides Internet access at speeds up to 25 Mbps. It has successfully tested the equipment during the past five weeks and said it will have its first customers on-line by September 30. Fuzion will use the Qwest fiber optic network as a backbone, thereby relieving potential bottlenecks in their system which could decrease the AB-Access delivered capacity.

"This is just the first step in the national and international deployment of AB-Access by Fuzion," said Dave Frank, Fuzion Chief Operating Officer. Fuzion has entered into discussions with potential joint partners for a nationwide network deployment, and has already signed on several Fortune 100 customers in Florida.

Second Contract Involving U-NII Band Application

This is the second contract for AB-Access announced by Adaptive Broadband within the past 10 weeks. Both are for applications in the U-NII band. On July 27, Adaptive Broadband announced that I3S, an Irving, Texas high-speed data services provider, signed a contract initially valued at $100-million over five years for AB-Access equipment to be used in multi-tenant residential buildings across 48 U.S. states. Once installed, it will provide ultra high speed Internet access for 20 to 30 million residences.

U-NII contains three frequency bands that each consist of 100 MHz in the 5 GHz range. "Because no FCC action is required to use the band, it will instantly allow carriers both large and small to compete for voice and data services," said Dr. Daniel Scharre, Adaptive Broadband's chief technology officer. "Over the next several years, we expect this opportunity to dramatically change the landscape of the telecommunications industry. We estimate, based on feedback from customers, that the U-NII band represents a $10-billion potential market in this country for wireless data networking equipment."

"From a broader perspective, it supports our estimate that the global wireless broadband access market will be valued at $100-billion," said Frederick D. Lawrence, chairman and chief executive officer of Adaptive Broadband. "There are a relatively few number of MMDS license holders today, and Internet applications in that frequency are not yet underway because the industry is awaiting further FCC action to finalize two-way transmission capability in the band. But U-NII is available for two-way transmission today, giving both large and small carriers the opportunity to do business immediately. And clearly, there's business to be had. The demand for greater bandwidth is here right now."

Speeds Up To 25 Mbps

AB-Access was introduced earlier this year for ultra high speed Internet access, bridging the last mile and replacing the local loop for business and residential subscribers. It offers data transmission at rates up to 25 Mbps, a speed up to 400 times faster than dial-up service with a 56K modem. At this bandwidth, users can download full-streaming video, download data files, use real-time video conferencing and surf the Worldwide Web -- all at the same time over a single connection. Initial product offerings are in both licensed (MMDS) and unlicensed (U-NII) bands to support the varying needs of different types of service providers. Future product releases at several frequency bands between 2 and 42 GHz are planned, made possible because of the frequency-independent, platform architecture of the product.

Merging Internet and Intranet

Frank said their subscribers will benefit by being able to connect directly to the Qwest fiber optic backbone. Fuzion is connecting its Boca Raton hub via a 45-Mbps link to this backbone, providing high-speed wireless Internet access to subscribers throughout the city. Meanwhile, construction is underway on multiple hubs in both the West Palm Beach and Miami metropolitan areas. Completion in West Palm Beach is scheduled during October, and in Miami during November. Additional hubs will be installed throughout Florida as demand for the service grows.

"As we move forward, Qwest will provide a fiber interconnection for all of our hubs throughout the United States," Frank said. "This gives us an immediate intranet. By connecting to the Qwest network, we connect directly to the Internet backbone, meaning our subscribers can avoid multiple hops. In a real sense, it's an integration of the Internet and the Fuzion intranet, giving our subscribers a superior level of performance and reliability."

International Expansion

Frank said Fuzion also has the resources in place today to begin deploying AB-Access globally. It owns a satellite integration firm that currently operates in 45 countries. "We intend to use AB-Access instead of the local loop in these countries," he said. "Wireless is the logical way to build out infrastructure both in the U.S. and in developing countries. It is the least expensive, the least disruptive, and can be deployed most quickly."

Harvey Stress Test

As the Fuzion network goes on-line, Fuzion and Adaptive Broadband engineers have had the opportunity to test it under the most demanding conditions. Fuzion has installed a test pad on the roof of its corporate headquarters in Boca Raton, from which it is transmitting data with AB-Access to the network's hub. And they've completed this work in the middle of Tropical Storm Harvey. "We've been testing in true tropical storm conditions," Frank said, "and we've had no interruptions in signal."

About Fuzion Technologies

Fuzion Technologies (www.gofuzion.com) is a leading provider of wireless broadband data services. Its bi-directional broadband network throughout the state of Florida can provide Internet access at speeds from one-half to 25 Mbps.

About Adaptive Broadband

Adaptive Broadband (www.adaptivebroadband.com) is a data networking solutions company -- a leading provider of terrestrial wireless and satellite-based systems to support ultra high speed Internet access, broadcast digital TV transport and worldwide Internet backbones. The company also provides industry-leading solutions for satellite-based data communications and terrestrial wireless telemetry networks.