Adaptive Broadband to Supply SpectraCast Products to OnSat Network Communications, Inc. -- a New U.S. Satellite Internet Service Provider.

SUNNYVALE, Calif.--(BUSINESS WIRE)--July 1, 1999--

Adaptive Broadband Corporation (Nasdaq National Market:ADAP) announced today an agreement to supply its new SpectraCast(R) products to OnSat Network Communications, Inc., for two-way, high speed Internet services via satellite.

SpectraCast is a family of products including multiplexers, IP gateways, various types of integrated receiver decoders, and supporting software for network data, audio, and multimedia delivery over satellite. This initial $1.1 million contract from OnSat is the first major domestic order for SpectraCast.

Park City, Utah-based OnSat is a new Satellite Internet Services Provider (ISP), whose primary service is a "scrubbed," or software filtered (pre-screened with x-rated content deleted) Internet and broadband services for public and private schools, churches, businesses and other audiences.

Their first customers include Foundation Telecommunications, Inc., U.S. West's Wyoming Rural Schools Initiative, Brigham Young University (three campuses), and JDL, an educational service company that services over 4,000 middle and high schools across America, Canada, the Caribbean and throughout Polynesia. Additionally, Catholic Online which provides many of the Web sites for the Catholic Church will install test systems this summer.

OnSat can feed up to 6Mbps IP data over the satellite to the individual receive sites where land line connections are either much too slow or are impossible to achieve, due to the rural location of the site. The SpectraCast system allows OnSat to start with a narrow channel of bandwidth and expand as their requirements and customer list grows.

OnSat performed extensive tests on the SpectraCast products over an eight-month period. During this time, Adaptive Broadband worked closely with OnSat's systems engineers to provide a complete solution for OnSat's Internet-via-satellite requirement. The result is a thoroughly designed, integrated and tested solution to deliver cost-effective, high-speed Internet services via satellite.

Kuen Damiano, president of OnSat: "After months of research and testing, we have concluded that Adaptive Broadband's solution to Internet connectivity via satellite is the best and most cost effective. It has allowed us to decrease the cost of our client's current service and at the same time dramatically improve the quality and response time.

"SpectraCast utilizes the latest technologies to help us deliver high-speed access to ISPs, schools and private companies for public and private network connectivity around the globe. The combination of the Adaptive Broadband products, OnSat's fast and wide Internet connection, our world wide space segment coverage and our other proprietary network technology, make this solution a complete, deliverable package."

"It is clear that OnSat is taking a leading role in this arena," said Michael C. Mulica, president, global sales and marketing for Adaptive Broadband. "The response from the industry and the feedback we have received from clients that are now using our Ethernet system, clearly demonstrate that our multiplexers and receivers are becoming the product of choice for LAN/WAN connectivity for satellite broadcast networks."

SpectraCast is a family of products including multiplexers, IP gateways, various types of integrated receiver decoders, and supporting software for the network data, audio, and multimedia delivery over satellite.

The SpectraCast DTMX1000E is a statistical data transport multiplexer featuring a 10/100 BaseT input ports, up to three remux input ports, and a DVB parallel output port. It acts as a MAC-to-PID switch and, together with DR1000E receivers, forms an asymmetric simplex-switched bridge solution.

A new member of the AB-Internet Series(TM) product line, SpectraCast reduces the cost and complexity of distributing Internet protocol (IP) traffic over satellite. SpectraCast is ideally suited for Virtual Private Networks (VPNs), broadband Internet distribution and broadband Internet backbones.

OnSat will utilize the unique abilities of the SpectraCast E-Series products to 1) interface directly to a 10/100BaseT system, 2) view the MAC-level "destination address," and 3) broadcast the information only to the specifically designated networks.

This feature enables SpectraCast to operate multiple VPNs and software-define virtual networks on a single carrier utilizing the technical efficiencies of today's conventional ATM and Frame Relay-based networks with the cost efficiencies of MPEG/DVB satellite broadcast.

The OnSat contract validates Adaptive Broadband's external investment plan. The SpectraCast product, acquired from Crown International in November 1998, is a complementary, key part of Adaptive Broadband's product family and is acknowledged as the leading product in an expansive market (including bank ATMs, gasoline stations, major retailers, and news agencies), that should yield significant revenues.

OnSat Network Communications, Inc., Park City, (http://www.onsat.net) is a Satellite Internet Services Provider that delivers proprietary network technologies including caching, probotics, multi-casting, QoS and routing along with fully redundant and filtered Internet access.

OnSat and Adaptive Broadband's combined technology provides a complete, bundled bi-directional solution for world wide wireless networking and Internet connectivity. OnSat resells the equipment, services and bandwidth as a cost effective, bundled package.

Adaptive Broadband (http://www.adaptivebroadband.com) is a leading supplier 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.