Aplio Goes Broadband! World's Leader in Internet Telephony Appliances Announces Outreach to Booming High-Speed Cable and DSL Internet Services Market.

LOS ANGELES--(BUSINESS WIRE)--April 14, 1999--

Aplio, Inc., market leader in Internet Telephony appliances and maker of the award-winning Aplio/Phone, today revealed a corporate strategy aimed at bringing its innovative PC-less Internet Telephony technology to the rapidly growing base of users who access the Internet through high-speed cable modems and DSL services, popularly termed "broadband services."

Aplio also announced that it plans to ship a suite of Ethernet enabled devices and embark upon an aggressive OEM initiative.

By going broadband, Aplio is taking another significant step toward making its Internet Telephony technology completely transparent, and creating an experience that is very close to conventional telephone calling over the Public Switched Telephone Network (PSTN).

Aplio's broadband strategy is two-fold: first, the company will focus on developing Aplio-branded products for use with high-speed connections, targeted toward the home and small office user. Second, Aplio is pursuing licensing opportunities with leading Internet Appliance vendors in order to achieve a wider penetration into the broadband market.

"Our goal is to become the de facto standard for Voice over Internet Protocol (VoIP) technology for Internet Appliances," said Olivier Zitoun, CEO/president of Aplio.

Seven Million Users by 2002

According to the Yankee Group, the number of households with DSL or cable modems installed will grow by the end of 1999 from 500,000 to 1.25 million, and to 7 million by 2002.

"Booming adoption of high-speed data services in the home and small office presents an enormous avenue for even wider adoption of Aplio's patented technology. With broadband technology, not only do users experience faster and more reliable Internet connections, but they no longer need to wait during the time it takes for traditional modems to 'dial up' to the Internet," comments Zitoun.

Users of Internet Telephony appliances like the Aplio/Phone will experience free long distance Internet calls of superior sound quality, as well as instantaneous communication through the direct, permanent access that broadband connectivity provides.

A New Generation of Broadband-Ready Internet Telephony Appliances

Aplio is in the process of developing a new family of Ethernet enabled devices which will allow connectivity with LANs, DSL and Cable Modems. While these new devices will fully exploit the high-speed access and instant connectivity of broadband, they will be backward compatible with other dial-up Aplio/Phones devices. For example, a cable modem user in New York will be able to call his relative in India who uses an Aplio/Phone via a dial-up connection.

In addition, these devices will be fully H.323 compliant. Users will be able to complete calls to any regular phone anywhere in the world by going through H.323 compliant gateways. The first of these products will ship during the summer of 1999.

Aplio Everywhere

Aplio is also launching an OEM initiative as part of its program, "Aplio Everywhere," to license its technology to leading vendors of set-top boxes, Web Phones, Personal Digital Assistants (PDAs), Web pads, and other Internet Appliances designed to run on high-speed Internet access channels. To facilitate this integration, Aplio is currently porting its technology to multiple hardware and software platforms. The company expects to conclude the first of these agreements within the next six months.

About Aplio

Aplio, Inc. is the world leader in the Internet telephony appliance market. Founded in 1996, Aplio develops and delivers a new generation of very low-cost, easy-to-use Internet appliances, enabling any small business or home user to communicate and access information through the Internet, without using a PC.

Aplio's patented technology allows calls made over traditional long distance lines to be "re-routed" through the Internet, thereby making long distance phone calls free, except for the cost of Internet Access. The company's flagship product, the Aplio/Phone, was introduced in March of 1998. Since its introduction, the Aplio/Phone has received much acclaim, from the press (HomePC's Reviewer's Choice, Internet Telephony's Editor's Pick), analysts, and customers worldwide.

Located in San Bruno, Calif., Aplio, Inc. has a worldwide presence with offices in the United States, Europe and Israel. The privately held company is backed by major European and Asian venture capitalists.

Aplio will be exhibiting at Spring Internet World 1999 April 14-16 at booth no. 2946.