Adaptive Broadband and U S West Sign Master Purchase Agreement for AB-Access Broadband Wireless Data Networking Units.

SUNNYVALE, Calif.--(BUSINESS WIRE)--Oct. 18, 1999--

Adaptive Broadband Corporation (Nasdaq:ADAP) has signed a master purchase agreement with U S WEST (NYSE:USW) that enables the Denver-based Regional Bell Operating Company and its affiliates to purchase AB-Access(TM) broadband wireless networking equipment.

It is the first agreement by Adaptive Broadband with a Regional Bell Operating Company for the sale of its new AB-Access equipment. The terms, conditions, and volumes are undisclosed. U S WEST announced that by the end of the year, it will deploy AB-Access base stations and subscriber units in a field trial in the Denver Metro Area.

Adaptive Broadband introduced AB-Access earlier this year for ultra high speed Internet access. It offers data transmission at rates up to 25 Mbps, a speed over 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 World Wide Web -- all at the same time over a single connection. Service providers in Florida and Texas are currently introducing commercial applications for data transport using the unlicensed U-NII band, which is available today for two-way transmission.

"Working with Adaptive Broadband and their AB-Access product will enable us to better understand the characteristics of broadband wireless technologies," said Wayne Leuck, vice president of engineering and technologies at U S WEST Wireless. "This relationship will help us understand the value customers may place on high speed wireless data."

From Circuit-Based To Packet-Based Networks

The commercial emergence of broadband wireless technology comes at a time when data traffic has surpassed voice traffic in volume. Providers have been responding to this change by moving from dedicated circuit-based networks to packet-based network infrastructures. These packet-based networks offer providers an efficient way to supply Internet, data, video, and multimedia applications over the same infrastructure -- but they require high transmission rates and superior bandwidth management.

"AB-Access provides advantages over competitive alternatives in both respects," said Salvatore S. Benti, Adaptive Broadband's senior vice president for broadband systems. "Furthermore, the patent-pending design of its MAC (media access control) software layer provides carriers with an instant provisioning capability and customers with portability for Internet and other data transmission needs."

He added that Adaptive Broadband is working to deliver higher data rates in mid 2000 as well -- from 25 up to 100 megabits per second -- which will allow carriers to add more users without compromising their throughput capability. This, combined with the portable and mobile product evolutions, create an enormously powerful platform.

Market Growth

"This latest announcement is further evidence of the market demand for value-added broadband wireless communication," said Frederick D. Lawrence, Adaptive Broadband's chairman and chief executive officer. "It supports our estimate that the global wireless broadband access market will be valued at $100-billion," Lawrence said.

"During the coming five years, it's projected that up to 20 million homes and businesses across the United States will subscribe to high-speed data services, defined as 125 kilobits per second and faster, with the initial wave of this demand being driven by small to medium-sized businesses and telecommuters. While that's just a percentage of all potential users, it shows there is significant pent-up demand for high-speed Internet access. And within this market, wireless broadband alternatives are very attractive."

About U S WEST

U S WEST (www.uswest.com) provides a full range of telecommunications services -- including wireline, wireless PCS, data networking, directory and information services -- to more than 25 million customers nationally and in 14 Western and Midwestern states.

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.