Amplify.net and Elastic Networks Seal OEM Partnership.

Business Editors

FREMONT, Calif.--(BUSINESS WIRE)--Feb. 6, 2001

Elastic Networks Integrates Amplify's IP Service Engine into the Storm

System of Intelligent IP over Ethernet Solutions

Amplify.net, a Silicon Valley startup specializing in broadband service quality and management solutions, and Elastic Networks Inc. today announced the full integration of Amplify's IP Service Engine into Elastic Networks' Storm System family of intelligent, first mile IP high-speed access solutions.

By internalizing Amplify's traffic shaping capabilities and gigabit Ethernet interface directly into their BitStorm(TM) IP DSLAM, Elastic Networks further strengthens their Ethernet end-to-end first mile solution. The solution allows operators to easily and seamlessly utilize existing copper plant to bridge metro optical gigabit Ethernet networks with residential and corporate LANs. The fully integrated solution is scheduled for general release in the third quarter of 2001.

Elastic Networks' Storm System of intelligent IP over Ethernet solutions deliver bi-directional bandwidth at speeds up to 6 Mbps and distances of 21,000 feet over existing copper telephone lines, without the need for costly loop engineering or binder management. Comprised of the BitStorm IP DSL Access Multiplexer, Layer 3 IP Switch, Subscriber Management Gateway/Controller and the BitStorm Server, the Storm System transforms regular telephone twisted pair wiring into a high-speed, IP-based Local Area Network, capable of supporting lifeline voice services as well as voice over IP, secure network-based VPNs, multicast streaming audio and video, interactive gaming, enhanced chat rooms, web caching, and localized web hosting for business, consumer and entertainment services.

Amplify.net's IP Service Engine overcomes the limitations of priority-based QoS schemes by providing advanced IP-based, subscriber-oriented quality of service technology developed around industry standards, capable of guaranteeing the delivery quality of multiple, simultaneous sessions for voice, video as well as data to each subscriber, based on pre- or dynamically-defined policy-based service level agreements (SLAs). Amplify.net's IP Service Engine provides IP intelligence all the way to the edge of the network in a distributed network architectural environment.

"By integrating Amplify.net's IP Service Engine, we are providing a complete solution for our service provider customers, with the most effective Quality of Service (QoS) technology to deliver Ethernet-based broadband services to their subscribers," said Guy Gill, president and CEO for Elastic Networks.

"We are very pleased that Elastic shares our view on the necessity of per-subscriber, policy-oriented quality of service in delivering value-added services such as video distribution, video on demand and voice over IP," said Didier Cop, vice president of marketing for Amplify.net. "Our solutions enable broadband equipment manufacturers, such as Elastic, to add advanced functionality to their equipment that differentiates them from current broadband access products which only focus on basic Internet Access."

"This is a perfect match between our two companies visions," said Pauline Alker, president and CEO for Amplify.net. "While Elastic Networks' EtherLoop(TM) technology extends the reach and facilitates deployment of high-speed IP services over copper networks, Amplify.net's IP Service Engine offers QoS capabilities that have been designed to accommodate the high density of traffic flows and increasing bandwidth requirements in the access network in a cost effective way."

About Elastic Networks Inc.

Elastic Networks Inc. (NASDAQ: ELAS) is a leader in innovative, next-generation last mile IP over Ethernet solutions enabling telecommunications service providers to easily offer broadband multimedia applications. By leveraging its technological differentiation in speed, deployability, and economics, and by building strategic relationships with distributor, chip manufacturing, and data networking partners, Elastic Networks continues to increase the pervasiveness of its innovative technology in markets throughout the world. The company has offices in Alpharetta, GA, and Hong Kong.

For more information about Elastic Networks and its high-speed access and subscriber management solutions, visit www.elastic.com, www.speedupamerica.com, or contact the U.S. headquarters in Alpharetta, Georgia, directly at [phone]. For investor information, e-mail Elastic Networks at [e-mail], or call [phone].

About Amplify.net, Inc. (http://www.amplifynet.com/)

Amplify.net is a broadband service quality and management solutions company that offers advanced bandwidth management and IP quality of service technologies and subscriber service management systems for DSL, cable and wireless networks. Amplify.net's technology boosts the revenue and profitability of service providers, enabling them to deliver and guarantee "last mile" quality of value-added IP services such as Voice over IP, Video and Audio on Demand and data-rich streaming content. Amplify.net licenses its technology to broadband equipment manufacturers as an "open system" IP Service Engine that provides the foundation for next generation products, and offers complete stand-alone systems to broadband service providers. The company has offices in Fremont, CA, and Hong Kong.

For more information about Amplify.net, www.amplifynet.com, or contact Amplify.net's U.S. headquarters in Fremont, CA, directly at [phone].

Elastic Networks forward-looking statements

Certain statements contained in this release are forward-looking statements (rather than historical facts) that are subject to risks and uncertainties that could cause actual results to differ materially from those described. With respect to such forward-looking statements, the Company seeks the protections afforded by the Private Securities Litigation Reform Act of 1995. These risks include, without limitation, (1) that the Company may fail to be competitive with existing and new competitors, (2) that the Company may not maintain or grow its level of revenues, given its currently limited customer base, (3) that the Company's limited number of product offerings may fail to achieve widespread market acceptance, (4) that negative changes in customer demands and requirements regarding our prices, technology and products may occur, (5) that DSL technology may fail to achieve widespread market penetration, (6) that interruptions or disruptions in our product shipments and/or our various arrangements with our distributors, manufacturers or resellers may negatively impact our ability to make sales and/or minimize our costs, (7) that the Company may not adequately respond to technological and regulatory developments impacting the telecommunications industry, (8) that needed financing may not be available to the Company if and as needed, (9) that a decline in the size and potential growth of the MTU, carrier and international markets for our technology may occur, (10) that a significant reversal in the trend toward increased usage of the Internet may occur, (11) that a drastic, negative change in the U.S. economy or market conditions may occur, and (12) that some other unforeseen difficulties may occur from time to time. This list is intended to identify certain of the principal factors that could cause actual results to differ materially from those described in the forward-looking statements included elsewhere herein. These factors are not intended to represent a complete list of all risks and uncertainties inherent in the Company's business, and should be read in conjunction with the more detailed cautionary statements included elsewhere in the Company's most recent filings with the SEC.