Anatel Communications Corporation Spun Off From Analogic.

Business/Technology Editors

PEABODY, Mass.--(BUSINESS WIRE)--March 27, 2000

Anatel Communications Corporation, a subsidiary of Analogic Corporation, was introduced to the Telecom industry at the Voice On the Net (VON) Exhibition and Conference today in San Jose, California. Anatel Communications, formerly Analogic's Communications Products Group, is being spun off to better focus on the explosive opportunities in the Voice over Internet Protocol (VoIP) and Internet Telecommunications markets.

"We believe the new company has a tremendous advantage in the foundation that has been laid as a successful division of Analogic for well over a decade," stated Chappell Cory, who has been appointed President of Anatel Communications. "We already are one of the top suppliers of VoIP boards, with customers including such market leaders as Lucent, ECI Telecom, and Net2Phone. We have had a technology leader with our innovative family of TAP-800 telephony resource boards. Now our expanding line of CompactPCI, T1/E1 and DS-3 network access boards should allow us to meet the needs of an even larger number of applications in the broader Internet Telecommunications market, including Softswitch architectures, voice routers (PBXs) and Call Center systems."

Anatel Communications' new organizational structure, increased investment in engineering, and new strategic alliances will enable Original Equipment Manufacturer (OEM) customers to purchase fully integrated box-level Media Gateways systems that are expandable to 10,000 ports and beyond. "Anatel Communications' customers, therefore, should be able to focus on their added value applications and get solutions into the hands of their customers faster," explained David Fridley, Director of Marketing. " This industry runs on `Internet Time,' so time to market is critical to our customers' success."

"Marketing and sales channels are expanding rapidly," commented Terry Shugart, Director of Sales. "Our new representative in Texas, RACOR Systems, has already brought on board a major new OEM customer. Also, our VoIPonline technical seminar series, which we started in January, is enabling us to speak with the many telephony engineers who are seeking innovative solutions for implementing VoIP."

Anatel Communications will be announcing new strategic alliances and new system-level VoIP and Media Gateway products in the near future.

Anatel Communications, an Analogic Company, designs, manufactures, and markets CompactPCI, PCI and ISA Voice over Internet Protocol (VoIP) DSP resource boards; T1/E1 and DS-3 network access boards; Media Gateway development systems; and associated software for Windows NT, Solaris, VxWorks, UNIXWare and Linux for the Internet Telecommunications market. Applications include VoIP Gateways, Softswitch architectures, voice routers (PBXs) and Call Center systems.

For more information on Anatel Communications Corporation, visit www.anatel.net or email [e-mail].

This news release contains forward-looking statements regarding future events or financial performance of Anatel and/or Analogic that involve risks and uncertainties. Certain risks and uncertainties, such as competition, are discussed in the risk factors section of Analogic's Form 10K for the year ended July 31, 1999, which factors are incorporated herein by reference. Copies of this document are available on request from the Investor Relations Department of Analogic Corporation.