Amati Communications and XEL Communications, a Gilbert Company, Announce Plans for Business Agreement on High-Speed Internet Access Products.SAN JOSE, Calif. and AURORA, Colo.--(BUSINESS WIRE)--Sept. 17, 1996--Amati Communications Corporation (Nasdaq: AMTX), a leading developer of advanced transmission equipment utilizing Discrete Multi-Tone technology (DMT See DSL. ) for the Asymmetric Digital Subscriber Line (communications, protocol) Asymmetric Digital Subscriber Line - (ADSL, or Asymmetric Digital Subscriber Loop) A form of Digital Subscriber Line in which the bandwidth available for downstream connection is significantly larger then for upstream. (ADSL See DSL. ADSL - Asymmetric Digital Subscriber Line ), and XEL XEL New Carlisle, Quebec, Canada - New Carlisle / via Rail Service (Airport Code) Communications, a leading supplier of telecommunications equipment to public network operators and a Gilbert Associates company (Nasdaq: NMS See NetWare Management System. :GILBA), today announced that the companies are in discussions toward completing a memorandum of understanding A Memorandum of Understanding (MoU) is a legal document describing a bilateral or multilateral agreement between parties. It expresses a convergence of will between the parties, indicating an intended common line of action and may not imply a legal commitment. to jointly offer a line of products utilizing Amati's ADSL/DMT technology. The products will be designed for high-speed access to the Internet directly over the existing copper wire telephone network. The ADSL/DMT technology underlying the new products was developed by Amati for the applications of data transmission over copper wires at rates up to 8 Mbps. This provides connections at speeds 200-300 times faster than current analog modems and 40 times faster than ISDN modems. The technology provides asymmetrical digital connections to the high-speed fiber networks currently being deployed to neighborhoods by most communication service providers. Amati ADSL/DMT products are being used in tests of 2 Mbps, 4 Mbps and 8 Mbps video-on-demand (interactive video) services being offered by PTTs in Europe and the Asia-Pacific region, and a 6 Mbps trial in Australia of a service offering broadcast quality video to the home. Amati is also providing ADSL/DMT equipment for GTE GTE General Telephone & Electronics GTE Génie Thermique et Énergie (French) GTE Gas Turbine Engine GTE Global Tropospheric Experiment GTE Geothermal Energy GTE Gas Turbine Efficiency plc (Sweden & USA) Internet access trials in Dallas, Texas and Redmond, Washington. "As network operators race to meet the demand for high-speed Internet access, it will be important to offer high-speed services without making another large investment in network infrastructure," said Ray Winkler, Vice President of Business Development for XEL. "Amati's technology and XEL's product expertise will enable service providers to offer high-speed services using the copper wires already in place." "We are pleased to be working with XEL Communications to take advantage of our expertise in ADSL/DMT technology," said Tac Berry, Vice President of Marketing for Amati. "XEL's excellent customer relationships and strong product development track record make them an effective partner for the next stage of system availability of ADSL/DMT services." XEL Communications designs, manufacturers and markets voice and data transmission products used by operators of telecommunication networks worldwide. XEL's other recent offerings include a line of HDSL See DSL. HDSL - High bit-rate Digital Subscriber Line fractional T1 products. Reading, PA-based Gilbert Associates, Inc. is a holding company whose subsidiaries operate in the high-growth telecommunications equipment and service markets. Amati is a leading developer of advanced transmission equipment utilizing DMT technology for the ADSL, Very High-Speed Digital Subscriber Line See DSL. (communications, protocol) Digital Subscriber Line - (DSL, or Digital Subscriber Loop, xDSL - see below) A family of digital telecommunications protocols designed to allow high speed data communication over the existing copper telephone lines between end-users and (VDSL See DSL. VDSL - Very high bit-rate Digital Subscriber Line ) and cable modem markets. Amati is the holder of the ADSL/DMT patents and has licensed the technology to companies such as Nortel and Motorola. Amati is also a provider of network connectivity systems for the internetworking and OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and marketplaces. The company's connectivity products include local area network gateways, client-based workstation software and network data communication interfaces. -0- Note to Editors: Statements made in this press release which are not historical, including statements regarding product demonstration, product capabilities and markets, are forward looking statements and as such are subject to a number of risks. Please see the company's 1995 annual report and other reports filed pursuant to the Securities Exchange Act of 1934 for additional disclosure regarding such risk factors. CONTACT: Amati Communications Benjamin W. (Tac) Berry, 408/879-2000 or Gilbert Associates Mike Vermillion, 610/856-5543 or XEL Communications Ray Winkler, 303/696-2349 or Simon/McGarry Public Relations Carol Felton, 408/746-0911 or Financial Relations Board Paula Schwartz, 212/661-8030 (General) Jordan Darrow, 212/661-8030 (Analyst) Judith Sylk-Siegel, 212/661-8030 (Media) |
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