Applied Innovation Inc. Announces Formation of Enhanced Services Division.

Business Editors

DUBLIN, Ohio--(BUSINESS WIRE)--March 16, 2000

Applied Innovation Inc. (Nasdaq:AINN) today announced the establishment of their Enhanced Services Division as a core business to complement the Company's expanding line of innovative mediation devices for telecommunications carriers' networks.

This newly created division will focus exclusively on assisting customers with the planning, deployment and management of customers' networks and Operational Support Systems, and will help tackle the business issues of integrating network technology.

The suite of services offered include initial analysis and planning, deployment and management of service provider networks, planning and deployment of operational support systems and supplemental staffing. Custom developed software and small, medium and large-scale hardware design are among the options available. These systems are scalable to help customers manage all aspects of their network infrastructure. The broad suite of services has been created to afford customers the option of addressing specific needs or partnering with Applied Innovation for complete turnkey solutions.

"The successful and timely deployment of a company's network, and its ability to deliver reliable service to customers over that network has a direct impact on a company's competitive posture. Whether faced with deploying a new network or migrating a legacy environment, the foresight to also deploy an effective management architecture is key to sustained success. Our ability to eliminate the problems associated with reliability, performance, security and interoperability enable our customers to leverage their applications as competitive assets. By providing solutions that are fast, reliable, integrated and forward looking we are able to help our customers save valuable capital resources while becoming more competitive at a much faster pace," Jerry Matthews, Director of the Enhanced Services group said.

Before returning to Applied Innovation in January, 2000, Mr. Matthews was the General Manager of engineering and deployment services for Enterprise Engineering Inc., a consulting firm specializing in integrated solutions, and a Division Technical Director for Computer Associates International Inc, a global corporation specializing in network and systems management.

Applied Innovation has a broad understanding of network-based applications and can eliminate both the risk and the cost of making the wrong decision about the networked environment. By giving our customers a clear perspective on making sound business decisions we can ensure the complex network technology solutions are met with confidence. Each customer has a unique situation and Applied Innovation has the ability to respond to each one with a customized approach.

"This new generation of solutions, coupled with our expertise and proven track record in designing and implementing solutions, brings the business impact of network technology to the forefront. This holds true in both our traditional customer base as well as the new markets we have entered," said Gerry Moersdorf, Jr., President, Applied Innovation. "We are committed to helping our customers build the infrastructure they need to grow, as well as maximizing the return on their technology investment. We have the capacity to deliver long-term network plans and can rapidly address the complex needs our customers face."

Mr. Moersdorf continued, "Whether there is a new network being planned or existing operations being maintained, we have the talent and the capacity to meet those needs. Enhanced Services will provide the necessary blueprints and solutions to augment the customer's own operations capabilities and ensure reliable and efficient operations."

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 telecommunications carriers' networks. Applied Innovation has 235 employees, and had total revenue of $49.5 million in its 1999 fiscal year. Information about Applied Innovation, its products and services can be found on the World Wide Web at www.aiinet.com, or by calling 1-800-247-9482.

This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Those statements include, but may not be limited to, all statements regarding intent, beliefs, expectations, projections, forecasts, and plans of the Company and its management, and include: statements regarding new service initiatives, customer requirements, and capacity. These forward-looking statements involve numerous risks and uncertainties, including, without limitation: the Company's ability to offer new services as planned, the impact of competitive products and services, the ability to hire technical staff, the Company's ability to adapt with technological changes, and other risks and uncertainties detailed from time to time in the Company's Securities and Exchange Commission filings, including the, the Company's Annual Report on Form 10-K for the year ended December 31, 1998. One or more of these factors have affected, and could in the future affect, the Company's business and financial results in future periods and could cause actual results to differ materially from plans and projections. Therefore, there can be no assurances that the forward-looking statements included in this press release will prove to be accurate. In light of the significant uncertainties in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company, or any other persons, that the objectives and plans of the Company will be achieved. All forward-looking statements made in this press release are based on information presently available to the management of the Company. The Company assumes no obligation to update any forward-looking statements.