Applied Innovation Inc. Announces Initial Orders for New AIscout Product.

Business Editors, Technology Writers

DUBLIN, Ohio--(BUSINESS WIRE)--Dec. 22, 1999

Applied Innovation Inc. (NASDAQ NM: AINN) today announced it has received over $2.75 million in orders from new and existing customers for the recently introduced AIscout(TM) product.

"AIscout enabled us to add a major new customer who is deploying this product in a nationwide integrated voice, data and video services network," stated William J. Mrukowski, Senior Vice President, Sales and Marketing. "We are glad to add another significant customer seeking an efficient and cost effective solution for management of their communications network."

Gerard B. Moersdorf, President and Chief Executive Officer, added, "We are pleased with the strong initial response for AIscout and the solid orders which have followed since it was introduced last quarter. The Company has received indications for a substantial number of additional AIscout orders during calendar year 2000 and is pursuing opportunities to increase penetration of AIscout in our existing base of regional operating companies as well as expanding into CLEC's."

AIscout is a self-contained, economical, mediation and concentration device especially designed to provide connectivity solutions for local loop data communication. It is designed for small central offices, Controlled Environment Vaults and co-location sites, and offers a broad range of features to meet a variety of network needs. AIscout is ideal for protocol mediation and port concentration for transporting operation, administration, maintenance and provisioning (OAM&P) data between network elements and operational support systems (OSS).

Headquarted 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 world's largest and fastest growing telecommunications service providers. Other products include fiber optic ethernet switches, systems providing web access to network elements, network planning and design and systems integration. For more information on Applied Innovation, visit the company's website at www.aiinet.com, or call 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 are not limited to, all statements regarding intent, beliefs, expectations, projections, forecasts, and plans of the Company and its management, and specifically include statements regarding strong initial response for AIscout, solid orders since its introduction last quarter, indications for a substantial number of additional AIscout products during calendar year 2000, and is that the Company is pursuing opportunities to increase penetration of AIscout in its existing base of regional operating companies as well as expanding into CLEC's. Additionally, the Company is pursuing opportunities to increase penetration of this product within additional segments of the telecommunications industry. These forward-looking statements involve numerous risks and uncertainties, including, without limitation: the Company's ability to repurchase the shares in market or private transactions at acceptable prices, the availability of sufficient cash reserves to fund the repurchases, and other risks and uncertainties detailed from time to time in the Company's Securities and Exchange Commission filings, including 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 Company, or any other persons should not regard the inclusion of such information as a representation, 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.