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Amati and Tadiran Telecommunications Report Positive Results in ADSL Video-On-Demand Trial in Israel; Trial With Bezeq, Israel Telcom, Provides Video-on-Demand to Local Subscribers.


SAN JOSE, Calif.--(BUSINESS WIRE)--Aug. 7, 1996--Amati Communications Corporation (NASDAQ NASDAQ
 in full National Association of Securities Dealers Automated Quotations

U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on
: AMTX) and Tadiran Telecommunications Ltd.(NASDAQ: TTELF), announced very positive results of a video-on-demand (VOD See video-on-demand.

VoD - video on demand
) trial in Israel for interactive video services to the home using 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
) technology.

Amati has developed and manufactured the ADSL shelf system and remote modems being used in this trial, equipment that is based on the company's DMT See DSL.  (Discrete Multi-Tone) technology.

The trial, with Bezeq (Israel Telcom), began in April 1996 and is designed to validate the technical aspects of VOD service. It currently involves more than 100 homes scattered around two central offices in Tel Aviv and Jerusalem, 30 miles apart, as well as some remote homes up to 100 miles away, reached via an interoffice transmission infrastructure.

Customers are being offered a wide variety of video and interactive services. Amati's Overture 4 ADSL/DMT modems are transmitting data over existing copper telephone lines at 2 Mbps downstream and 9.6 Kbps upstream at distances of more than 5 Km.

With the success of the trial to-date, Bezeq is in the process of expanding to a full marketing trial. Michael Levinkron, program manager for Tadiran Telecommunication said, "Delivering live video to the home over common telephony copper pairs was merely speculation until Amati equipment proved it could be done. And, Amati's equipment demonstrates the reliability and stability of a `plug-and-forget' solution."

James Steenbergen, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board.  of Amati, said "We are pleased to be supplying the ADSL/DMT technology to support Tadiran. Their system expertise and the Amati DMT technology being made available permits Bezeq to conduct this VOD trial. Obviously, we are very encouraged by the response of those to whom the ADSL/DMT-enabled services are being delivered."

He added, "This trial further reinforces our conviction that ADSL/DMT will be a key technology in the future of higher bandwidth signals to the home, over existing telephone lines and at low cost to the subscriber."

In addition to the Bezeq trial, Amati is also participating in tests of 2 Mbps and 4 Mbps VOD services being offered by other PTTs in Europe and the Asia-Pacific Rim, and a 6 Mbps trial in Australia of a service offering broadcast quality video to the home by Telstra (Telecom Australia). The company is also providing ADSL/DMT equipment in the current 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 trial in Dallas, Texas. Tadiran Telecommunications Ltd. specializes in a variety of telecommunications fields, including: Digital Public Switching, Access, Transport, Wireless Local Loop, and Datacom Systems, as well as Business Telecommunication Systems, and more. The company provides innovative solutions to telecommunications network needs throughout the world.

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, Motorola, and NEC (NEC Corporation, Tokyo, www.nec.com, www.necus.com) An electronics conglomerate known in the U.S. for its monitors. In Japan, it had the lion's share of the PC market until the late 1990s (see PC 98).

NEC was founded in Tokyo in 1899 as Nippon Electric Company, Ltd.
. 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 communications interfaces.

-0-

Note to Editors: Statements made in this press release which are not historical, including statements regarding product demonstration, product capabilities, availability and markets, are forward looking statements and as such are subject to a number of risks. Please see the Company's prospectus/proxy statement dated October 16, 1995 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, 415/903-2398

or

Simon/McGarry Public Relations

Carol Felton, 408/746-0911

cfelton@shandwick.com
COPYRIGHT 1996 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1996, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
Date:Aug 7, 1996
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