Applied Digital Access and Bell Atlantic Sign Three Year Supply Agreement for Purchase of Advanced Test Systems.

SAN DIEGO--(BUSINESS WIRE)--Aug. 17, 1998--Applied Digital Access, Inc. (ADA) (NASDAQ:ADAX) announced today that Bell Atlantic has signed a new three year supply agreement for purchase of ADA's advanced test systems. ADA's on-demand testing and monitoring systems will assist Bell Atlantic with the deployment of its narrowband, wideband and broadband networks. Terms of the three year contract have not been disclosed.

The comprehensive test systems provided by ADA will interface with Bell Atlantic's Operations Support Systems (OSS), and present an end-to-end view of the network. The systems will use ADA's Sectionalizer software technology, and integrated solution that expedites fault isolation non-intrusively, and eliminates the need for multiple dispatches to locate network problems. In addition, ADA's equipment will provide Bell Atlantic with complete sectionalization between the network and CPE to isolate fault, and will allow monitoring of circuit performance and troubleshooting.

According to Steven Murphy, ADA's vice president sales and marketing, "the contract presents another opportunity for ADA to offer its technology solutions and value-added services to yet another RBOC."

Bell Atlantic, formed through the merger of Bell Atlantic and NYNEX, is at the forefront of the new communications and information industry. With 40.5 million telephone access lines and six million wireless customers worldwide, Bell Atlantic companies are premier providers of advanced wireline voice and data services, market leaders in wireless services, and the world's largest publishers of directory information. Bell Atlantic companies are also among the world's largest investors in high-growth global communications markets, with operations and investments in 21 countries.

ADA's digital test and performance management expert systems solutions include the T3AS Test and Performance Monitoring System, Centralized Test System (CTS), and Remote Module, a DS1 Network Interface Unit combined with Sectionalizer expert systems software.

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 is headquartered in San Diego, California, and has product development and support facilities in Vancouver, British Columbia, Terre Haute, Indiana, and Richardson, Texas. Press releases and other information about Applied Digital Access and its products and services are available at http://www.ada.com on the Internet.

"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 the Company's Annual Report on Form 10-K for the year ended 12/31/97 which include competition in the Company's markets, fluctuations in quarterly operating results; history of losses, the 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 the need to make advance purchase commitments, Year 2000 compliance, product recall, 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.

CONTACT: Applied Digital Access

Steven Murphy

Jim Keefe

619/623-2200

Fax: [phone]

or

The Townsend Agency

Susan Caroppo

619/457-4888

Fax: [phone]