Applied Digital Access Announces New Business Unit Managers; ADA Focuses On Core Products and Market Areas.

SAN DIEGO--(BUSINESS WIRE)--Jan. 29, 1999--Applied Digital Access Inc. (ADA) (Nasdaq:ADAX) announced today the establishment of three business units, each focused on one of ADA's core product and market areas.

Each business unit is headed by a business unit manager, who will direct sales and marketing, development engineering, systems engineering, product management and customer support for the specific product and market areas.

Network Systems Business Unit:

Don O'Connor, vice president of customer support, was named business unit manager for the Network Systems Business Unit (NSBU). O'Connor continues as vice president of Customer Support. The NSBU includes ADA's Digital Test Management product line: T3AS Test and Performance Monitoring System, an in-line digital test access unit with network access at DS3 and DS1 rates; Centralized Test System (CTS), a test system for digital cross-connect systems; Network Embedded Protocol Analysis (NEPA), technology for management of Frame Relay, ATM and IP networks; and TestOS, an operations system software application for control of testing, monitoring and analysis systems including T3AS, CTS, NEPA and test and analysis systems from other suppliers.

The NSBU also includes Remote Module, a DS1 Network Interface Unit (NIU), an expert systems NIU that provides instantaneous non-intrusive determination of quality of service provided by telephone companies to their end-users. The Remote Module provides additional functionality when used in conjunction with the Digital Test Management product line.

Intelligent Network Elements Business Unit:

Kevin Pope, previously vice president, development, was named business unit manager for the Intelligent Network Elements Business Unit (INE). The INE business unit includes products currently being developed under ADA's previously announced joint development agreement with Nortel. The first product developed under this agreement is expected to be introduced in the second half of this year.

Network Management Business Unit:

Peter Savage, president and chief executive officer, was named acting business unit manager for the Network Management Business Unit (NMBU). Savage continues as president and CEO. The NMBU includes ADA's Operations Systems product line: .Provisioner, a service activation and circuit provisioning operations system; Traffic Data Collection and Engineering (TDC&E) operations system for management of switched networks; and Fault Management System (FMS), fault and alarm management operations system.

The company also announced that Steven F.X. Murphy, previously vice president, sales and marketing, has resigned to pursue other interests. Murphy's duties will be assumed by sales and marketing personnel within each business unit, reporting to the business unit manager.

Applied Digital Access is a leading provider of Network Performance Management products that include systems, software and services used to manage the quality, performance, availability and reliability of telecommunications service providers' networks. These products enable telecommunications service providers to improve quality of service, increase productivity and lower operating expenses.

The company has headquarters in San Diego, and has product development and support facilities in Vancouver, British Columbia, Terre Haute, Ind., and Richardson, Texas. Press releases and other information about Applied Digital Access and its products and services are available at http://www.ada.com.

"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: Except for historical information contained in this release, the preceding may contain forward-looking statements that involve potential risks and uncertainties as detailed in ADA's Annual Report on Form 10-K for the year ended 12/31/97 and the most recent 10-Qs, which include fluctuations in quarterly operating results, history of losses, competition, concentration of major customers, telephone company qualification requirements, high dependence on two product lines, management of changing business, customer mergers, rapid technological change and dependence on new products, dependence on suppliers and subcontractors, high inventory levels and need to make advance purchase commitments, Year 2000 compliance, product recall and defects, government regulation, potential competition from RBOCs, proprietary technology, dependence on key personnel and volatility of stock price. The Company's actual results could differ materially from those discussed in this release. Readers are cautioned not to place undue reliance on these forward-looking statements which speak only as of the date hereof. The Company undertakes no obligation to revise or update these forward-looking statements to reflect events or circumstances after the date of this release.