Adaptive Broadband and LHS Group Initiate Efforts to Deliver Integrated Solution for Fixed Wireless Broadband Market.

Business Editors/High Tech Writers

SUPERCOMM 2000

SUNNYVALE, Calif.--(BUSINESS WIRE)--June 7, 2000

Combination of BSCS and AB-Access(TM)' ATM-over-the-air Feature

Enables Dynamic Quality of Service Customer Billing

ADAPTIVE BROADBAND(TM) CORPORATION (NASDAQ: ADAP) and LHS Group, Inc. (NASDAQ: LHSG) announced collaborative efforts that will leverage both companies' industry leading expertise in the telecommunications and wireless broadband based services markets. The joint solution of LHS' advanced billing and customer care (BSCS) software with Adaptive Broadband's AB-Access fixed wireless broadband products will enable service providers to offer various levels of customer billing. Levels of billing supported will include flat, tiered, and variable rates, packet-based, static and dynamic Quality of Service (QoS). The Asynchronous Transfer Mode (ATM) element of AB-Access allows for carriers to change service levels from normal to high priority and bill accordingly, even measured by the amount of bytes of data transmitted, a feature unique in the fixed wireless broadband market. It is expected that AB-Access and LHS software will be integrated and offered in a combined fashion during the fourth quarter of 2000 timeframe.

Multiple Traffic and User Priorities

AB-Access supports multimedia and other delay-sensitive traffic by using ATM QoS mechanisms. Traffic priorities can be assigned on a cell-by-cell basis, for instance to send video at a higher priority than e-mail. AB-Access supports a range of innovative tariffing plans, by enabling user priorities and associated tariffs to be allocated in a variety of ways, dividing service users into different charging categories according to their type and system usage depending upon the service operator's marketing strategy. Categories of subscribers are simply invented by the service operator as required and maintained by the network manager, and could be a few dedicated high speed lines, a large number of best effort lines or any variation in between. With BSCS, subscribers can be billed for services in a variety of ways beyond simple flat rate fee structures, including bandwidth usage and bandwidth-on-demand, duration, time-of-day, number of events or transactions, or other defined parameters. Providers can rapidly develop and deploy new service offerings, cross-discounting and multi-tier pricing regimes, and offer end-to-end support for the customer lifecycle, from acquisition and provisioning, rating, billing and customer care, to personalized marketing and retention. "Leading-edge data billing support for emerging markets is a primary focus," explained Gary Cuccio, chief executive officer of LHS. "The Adaptive/LHS collaboration further underscores LHS' commitment to deliver advanced broadband, GPRS, 3G and WAP solutions to the convergent wireless market."

Integrated Solution for the U-NII Band, MMDS and LMDS Markets

The fixed wireless broadband market, estimated in excess of $100 billion by 2005, will create unique challenges for global service providers to establish and maintain competitive advantage. Adaptive Broadband and LHS Group's joint offering will address those unique needs. Adaptive Broadband announced recently that it was entering the LMDS market with a compact, low-cost, point-to-multipoint fixed wireless broadband product offering in response to industry feedback that customers are not satisfied with the current competitive products on the market. "Teaming with LHS Group to integrate their superior BSCS business support software with AB-Access is yet another step we are taking to be responsive to customers' needs. We will keep developing and refining our products and technologies in order to provide best of breed solutions for the emerging fixed wireless broadband market," commented Sal Benti, executive vice president, Adaptive Broadband.

About AB-Access

AB-Access bridges the last mile, replacing the local loop for business and residential subscribers. It offers data transmission at rates up to 25 Mbps, which provides the capability for real-time video conferencing, transmission of full streaming video, web surfing, and transmission of data files - all simultaneously and over one connection. Product bandwidth is planned to expand to 100 Mbps in 2000. Adaptive Broadband also plans to offer a portable version of AB-Access in 2000.

AB-Access technology spans the frequency range from 2 to 42 GHz. The first releases for AB-Access are for applications using the 5 GHz U-NII (Unlicensed National Information Infrastructure) and 2.5 GHz MMDS (Multi-channel, Multi-point Distribution Service) frequency bands. Adaptive Broadband recently announced a 27.5-31.3 GHz LMDS (Local Multipoint Distribution Service) version of AB-Access and a 3.5 GHz version for the European market.

Versions of the U-NII, MMDS, LMDS and 3.5 GHz AB-Access will be featured in live point-to-multipoint demonstrations at the SuperComm trade show June 5-8 in Atlanta, GA, Booth No. 6539.

Point-to multipoint wireless networks being deployed with AB-Access include transmission hubs that contain six transmitter/receivers, each having 60-degree access points for complete 360-degree coverage. These access points are each serviced by an ATM-configured transceiver with a 25 Mbps channel, which can be shared by users because bandwidth is dynamically assigned. This scheduling is made possible by the product's proprietary MAC (media access control) software, as well as by ATM's small fixed cell length. The technology allows bandwidth to be supplied with cell-by-cell precision, essentially providing packet-on-demand capability. The ultimate result is that bandwidth of up to 25 Mbps is readily available to all users on the network.

About LHS Group

LHS Group is a leading global provider of operating support system software and services to the communications industry. LHS products range from pre- and post paid billing and customer care to enhanced services, neural network based churn management and acquisition software. They are installed at more than 350 customer sites worldwide. LHS has 18 global and regional partners (system integrators, international operators and equipment manufacturers) representing one of the largest implementation and support networks in the global customer care and billing market. In addition to its Atlanta headquarters, LHS has major offices in Frankfurt, Germany; Kuala Lumpur, Malaysia; Sao Paulo, Brazil; Boston, USA; and Zurich, Switzerland. LHS is listed with NASDAQ (LHSG) and on the Frankfurt Neuer Market Exchange (LHI). For more information, visit LHS' Web site at (http://www.lhsgroup.com).

About Adaptive Broadband

Adaptive Broadband (www.adaptivebroadband.com) is a data networking solutions company that is developing leading-edge technology for the deployment of broadband wireless communication over the Internet. Its AB-Access product is a leading commercial choice for fixed broadband wireless communication.

The foregoing includes forward-looking statements, such as the anticipated growth of fixed wireless broadband markets, that involve risks and uncertainties. Actual events or results may differ materially from those suggested by the forward-looking statement. Factors that could cause actual events or results to differ materially include, but are not limited to, fluctuations in quarterly results, delays in receipt of orders or in the shipment of products, delays in the development of telecommunications and Internet markets and delays in product enhancements. For a more detailed discussion of these and other factors, see "Risk Factors" contained in Adaptive Broadband's Annual Report on Form 10-K for the fiscal year ended June 30, 1999.