Applied Innovation's AI Flex Enables Telecom Providers to Use Existing Fiber Networks to Manage Remote Locations.

DUBLIN, Ohio--(BUSINESS WIRE)--June 4, 1999--

Applied Innovation Inc. has introduced the AIflex (Fiber LAN Extender), a system that enables telecom companies to use existing fiber connections from the Central Office to monitor and manage CEVs, huts and shelters, it was announced today by Gerard B. Moersdorf Jr., president and CEO of Applied Innovation. Applied Innovation Inc. is listed as AINN on the NASDAQ exchange.

AIflex, which will be displayed for the first time in booth no.6453 during SuperComm '99, uses Wave Division Multiplexer (WDM) technology enables telecommunication providers to manage remote locations such as nodes on a Central Office-based LAN. Connecting directly to existing fiber, AIflex utilizes unused bandwidth to transmit management data between remote sites and the Central Office without the additional costs and delays associated with extra lines or routers.

"The AIflex eliminates the need for routers and T1 lines to monitor and manage remote locations," said Moersdorf. "More importantly, it eliminates the long lead times and recurring costs often associated with the installation of T1 lines. This allows telecommunication providers to operate with far greater efficiency."

Utilizing an Ethernet switch, the AIflex operates on an Interface module in an AISwitch. The AIflex system allows a choice of wavelengths (1310 nm or 1550 nm) so management data can be sent on the same fiber line as SONET/WDM payload traffic.

Some additional benefits of the AIflex system to telecommunications providers include:

-    Utilizing existing fiber and connections eliminates delays
     associated with the requesting and provisioning of a separate
     circuit.

-    No additional facilities are needed because AIflex utilizes the
     existing fiber between the Central Office and remote location
     which helps flatten the network topology.

-    Providing connectivity via existing fibers eliminates additional
     maintenance costs.

-    Connections can be made using the protect pair fiber allowing
     installation with no downtime.

"We are currently near completion on a trial of the AIflex with a major telecom carrier and it has been successfully tested with a variety of remote monitoring applications," said Kurt Paulus, product manager.

Headquartered in Dublin, Ohio, Applied Innovation is the leading provider of mediation products that enable communications between network elements and operations support systems for the management of telecommunication carriers' networks. Applied Innovation's products provide communications and interoperability for more than 100,000 network elements within many of the worlds largest and fastest-growing telecommunications service providers. For more information on Applied Innovation, visit the company's Web site at www.aiinet.com or call 800-247-9482.