American Multiplexer Corporation - AMC - Signs Contract with HP to Deploy Broadband IP Multicasting Services.

Business Editors, High-Tech Writers

SUNNYVALE, Calif.--(BUSINESS WIRE)--May 25, 2000

American Multiplexer Corporation (NASDAQ - OTC BB:AMUT) announced today that it has signed a contract with Hewlett-Packard Company to jointly sell, service and deploy AMC's broadband multicasting services. According to the agreement, AMC and HP will participate in joint sales efforts and HP will become AMC's Service Integration Arm in the US, with the intent to go worldwide. As an exclusive provider of consulting and integration and support services to corporate enterprise and dot.com markets, HP will be a key catalyst for AMC services deployment and adoption.

CRM, Procurement, Supply Chain, ERM, along with other front and back office business applications are rapidly being deployed by a new breed of service providers who provide application hosting over the Internet and offer their services on a rental basis. AMC and HP will be working together to address the growing market for Application Service Providers (ASPs) and mid to large corporate enterprises whose mission it is to seamlessly migrate business-critical applications to Web-based models.

By leveraging AMC's broadband network, service providers can rapidly increase the number of subscribers, add quality of service and Virtual Private Network (VPN) security without significant additional investment in infrastructure. Service provider partners gain access to AMC's advanced IP multicast network allowing them to greatly increase bandwidth efficiency. ASPs and Independent Software Vendors (ISVs) also roll out broadcast quality video services providing a more powerful value proposition to customers and subscribers.

AMC's technology and services coupled with HP's network services and expertise in providing fast deployment of highly available mission-critical infrastructures, will provide customers with rapid deployment time-to-market, Quality of Service, and end-to-end security. These three key components form the critical path service providers and corporate enterprises must take in order to successfully scale applications across the new Web-based-IT ecosystem.

AMC and its customers will leverage HP's portfolio of services, system servers, storage products, financing and software, as well as HP's re-selling relationships with other key technology players. In addition, HP will provide network assessment, specify customer requirements and deploy AMC's future Points-of-Presence (POP's). As AMC builds its customer base to global proportions, HP will serve as AMC's worldwide solution deployment and network support partner.

"HP has made a real commitment in helping organizations move their assets to the Web. Partnering with HP will significantly add to AMC's integration, sales and deployment capabilities as we roll out services," commented Edward Tan, CEO of AMC Network Services.

"This alliance will help expand HP's reach into the rapidly growing ASP marketplace," stated Mike Jolly, general manager of HP's Network Services Americas. "Together we will provide a complete customer solution for which HP will be the exclusive partner for design, procurement, integration, staging, installation, and support of AMC's leading technology and services."

About AMC

Located in Sunnyvale, California, American Multiplexer Corporation (dba AMC Network Services) is an e-business Solutions Provider that delivers high bandwidth content for business, educational and medical applications. AMC defines e-business as a means to interconnect and manage disparate IT systems across multiple network topologies - including the internet - to deliver secure, high quality business-critical content to thousands of users' desktops. The company has pioneered a multimedia communications network that utilizes IP data and video multicast technology over a fully integrated terrestrial and satellite architecture. AMC is currently rolling out broadband services that enable end-to-end e-business solutions allowing customers to deliver high quality video and data content to users and subscribers at high speed, competitive pricing and with easy integration into their existing networks. Over the next eighteen months, development plans include the rollout of more than 60 points of presence in the Americas, Europe and Asia. AMC partners with other technology companies such as Level (3) Communications, Oracle Corporation, SatMex, Philips Digital Networks and Hewlett Packard. AMC is traded on the NASDAQ - OTC BB market under the symbol AMUT. Tel: [phone], Fax: [phone], web site www.amux.com