Ambient Corp. and Bechtel Telecoms Announce Strategic Alliance Agreement.

Business Editors

NEW YORK--(BUSINESS WIRE)--July 2, 2001

Bechtel Acquires Option for Financial Stake in Ambient;

Bechtel To Provide Project Management and Market Build-out for

Ambient Powerline Telecommunications (PLT) Technology

Ambient Corporation (OTC: BB: ABTG), the world leader in Powerline Telecommunications (PLT) technology and Bechtel Telecommunications, a unit of Bechtel Corporation, the world's leading engineering and construction firm, jointly announced today the formalization of their commercial relationship with the signing of a comprehensive strategic alliance agreement.

The agreement represents the progression of Ambient and Bechtel's relationship into a structured, contractual alliance. Under the terms of the agreement, Bechtel will provide Ambient with project management and market build-out of Ambient's proprietary Powerline Telecommunications (PLT) technology. This includes, but is not limited to, engineering services, construction management, service crews and regulatory and marketing assistance.

In addition, as part of the strategic alliance, and the relationship between the companies, Bechtel has acquired an option to take a financial stake in Ambient Corporation through the issuance of warrants that have been awarded Bechtel by Ambient.

Mark Isaacson, CEO of Ambient, stated, "The strategic alliance is a logical outgrowth of our ongoing technical alliance. Bechtel is providing us with turnkey support in the commercial utilization and market delivery of our Powerline Telecommunications (PLT) technology. I am particularly gratified by Bechtel's potential assumption of an equity involvement in Ambient. Bechtel people are not only wonderful strategic partners, they provide Ambient depth on all levels, as well. This agreement and the upcoming site tests at the Idaho National Engineering and Environmental Laboratory (INEEL) are two very definite cornerstones in the evolution of our business from development to commercial. "

"We are pleased to be in on the ground floor of Ambient's development, in a relationship that is steadily gaining momentum," said George Conniff, president of Bechtel Telecommunications. "PLT technology is getting attention from major players in the commercial sector, because the potential impact of powerline transmission for communications is huge. Our experience in planning, PM, detailed engineering, and contract management, and 100 years of institutionalized approaches, complement Ambient's technology and entrepreneurial spirit."

Ambient Corporation has developed and owns innovative technology that facilitates the transfer of Internet and high-speed data through ordinary electric powerlines. The same electric wiring used to transmit electrical power to individual homes and businesses can also be used to transmit high-speed data. Ambient's Powerline Telecommunications (PLT) technology is designed to enable utilities and power companies to partner with Ambient in creating baskets of utility and consumer services.

These utility services are expected to include such features as automatic meter reading (AMR), load switching/balancing, demand management, outage reporting, real-time billing, and alarm monitoring. Consumer services may feature Internet, telephony, video-on-demand, content, and smart appliances. Both baskets of services will be achieved using Ambient's Powerline Telecommunications (PLT) technology across electrical powerlines and utilizing existing infrastructure.

Bechtel will also support Ambient in the market delivery of Ambient's technology by providing general contracting related to system mapping surveys, demonstrations, project management, crew support, and commercial implementation. Additionally, Bechtel will assist Ambient with compliance with utility commission or utility board regulations and guidelines, and applicable state and federal laws, both in the United States and abroad.

Last November, Ambient jointly announced with Consolidated Edison of New York (NYSE:ED), the successful first-phase testing of Ambient's Powerline Telecommunications (PLT) technology. In January 2001, Ambient announced successful testing in Osaka, Japan, that exceeded the results of the Con Edison tests.

On January 25, 2001, Ambient Corp. announced it had conducted in Hong Kong the first ever successful testing of its Powerline Telecommunications (PLT) technology in an actual residential building. These tests established successful connectivity from the electric distribution closet, to the furthest apartments on all 8 floors. In addition connectivity between each floor was successfully proven. Throughput data rates of up to 8 Mbps were recorded, with raw speed exceeding 25 Mbps.

On January 31, 2001, Ambient announced a development and licensing agreement with Cisco Systems Inc. (NASDAQ:CSCO).

On March 21, and May 22, 2001, Ambient Corporation and Bechtel Telecommunications, announced new technical services agreements that initiated development of a strategic alliance. Bechtel will support Ambient in the market delivery of Ambient's PLT technology by providing general contracting related to system mapping surveys, demonstrations, lab testing, project management, crew support, and commercial implementation support. Bechtel will also assist Ambient with compliance with utility commission or utility board regulations and guidelines, and applicable state and federal laws, both in the United States and abroad.

On April 03, 2001, Ambient Corporation announced that it will commence relocation of its world headquarters to New York. Ambient Corp. currently headquartered in Brookline, Massachusetts, will begin a phased transfer of its executive, financial, and operational functions to New York over the next months.

On June 13, 2001, Bechtel announced an agreement with Idaho National Engineering and Environmental Laboratory (INEEL) to collaborate on testing advanced technology. As part of the agreement Bechtel and INEEL will also conduct specialized independent research for new products and technologies, such as powerline technology. Bechtel is currently negotiating to be the first company to conduct large-scale testing and analysis of Ambient Corporation's propriety technology at the (INEEL) facilities. Bechtel plans to use the INEEL power distribution grid, which encompasses 54 laboratories, to test the functionality, modem connectivity, and other aspects of Ambient's proposed communication infrastructure. Bechtel and INEEL also would work with Ambient to conduct radio frequency emissions tests required by Federal Communications Commission (FCC) guidelines.

About Ambient Corporation:

Ambient Corporation (OTC BB: ABTG) is a publicly traded company incorporated in the United States that operates technology companies, focusing on Powerline Telecommunication (PLT), telephony-related product offerings, Internet and E-Commerce for a variety of exciting new consumer applications, plus a basket of utility related services. www.ambientcorp.com

About Bechtel Telecommunications:

Bechtel Telecommunications is a unit of Bechtel Corporation, one of the world's premier engineering, construction and management organizations. Headquartered in San Francisco, the privately held company has more than 40,000 employees, more than 50 offices worldwide, and 2000 revenues of $14.3 billion. Bechtel Telecommunications provides design, engineering, project management, and construction management for all types of telecommunication systems. www.bechteltelecoms.com

This press release may contain forward-looking statements that involve risks and uncertainties. These statements may differ materially from actual future events or results. Readers are referred to the documents filed by Ambient Corporation with the SEC, including the company's most recent report on Form 10-K and 10-Q, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements. Ambient is a trademark of Ambient Corporation registered in the U.S. Patent and Trademark Office.