Atreus Systems Corporation Expands Broadband Services Market Reach with Membership in International ASP Industry Consortium.

Business Editors

OTTAWA--(BUSINESS WIRE)--Jan. 31, 2000

Atreus xLINK solution enables ASPs to effectively deliver

value-added services to vertical markets

Atreus Systems Corporation, a leader in delivering vertical market solutions for high-speed Internet services, has joined the fast-growing Application Service Provider (ASP) Industry Consortium, an international advocacy group, developing guidelines for the growing application service provider segment of the computer and telecoms industry.

By 2002, Cahners In-Stat Group estimates that more than 20 million US employees will access applications from an ASP,&uot; said Kneko Burney, Director, Markets &Computing at Cahners In-Stat Group. &uot;Atreus' membership in the ASP Industry Consortium allows Atreus to form closer ties to the key players and customers in the emerging ASP market. Atreus' xLINK solution will foster the ASP business model by enabling ASPs to effectively deliver bundled broadband services to vertical markets.&uot;

Atreus xLINK(tm) product family enables service providers (ISPs, ASPs, etc.) to deploy a networked solution of vertical market portals for broadband services including traditional value-added services as VPN, e-commerce, unified messaging, business-to-business commerce, voice over IP, fax over IP and email. The xLINK solution enables Service Providers to bundle voice, data and content oriented services into a portal tailored for vertical markets such as MDU/MTU, hospitality and small businesses. By offering these high-value services, Service Providers are able to differentiate themselves from the competition, build customer loyalty, and create an additional, high margin revenue source.

&uot;Over the next 12 months, new technologies such as the xLINK family of products will accelerate the success of the ASP business model by enabling ASPs to effectively deliver these value-added services to their customers,&uot; said Jennifer Kula, Analyst at TeleChoice, Inc. &uot;Atreus' demonstrated commitment to developing solutions that will improve the infrastructure of the ASP market is further signified by their participation in the ASP Consortium.&uot;

&uot;Atreus is honored to be part of this group of technology innovators working to promote the overall benefit of the ASP industry,&uot; said Doug Bellinger, President &CEO of Atreus Systems Corporation. &uot;The goals of the ASP Consortium are consistent with Atreus as we help service providers leverage their investment in high-speed access deployment through value-added and enhanced IP services. Atreus is fully committed to helping ASPs reach their full business potential.&uot;

The consortium has formed four working committees, which are developing the consortium's operating plans: Education and Outreach, Research, Best Practices, and Membership. Committee work was launched at the first all-member meeting of the ASP Industry Consortium in San Francisco in August, and initial deliverables were announced at the consortium's second meeting in November in Colorado. The consortium will be unveiling new research findings in the coming weeks.

About Atreus Systems Corporation

Atreus Systems Corporation is a leader in delivering vertical market solutions for high speed Internet services. Atreus develops and markets broadband products and services that enable Service Providers to deliver a managed broadband service offering to such vertical markets as the hospitality, multi-dwelling unit (MDU), multi-tenant unit (MTU), and small office markets. Atreus' Linux-powered, rack mountable xLINK(tm) family of products provides cost-effective plug-and-play PC connectivity, integrated &uot;per-use or flat-fee&uot; billing services, customer self care, customer profiling, and a customizable, e-commerce enabled portal for voice, data and content oriented services. Headquartered in Ottawa, Canada, Atreus Systems specializes in the development, marketing, and sales of xLINK(tm) product suite and StartSmart(tm) professional services to telecommunications carriers, application service providers (ASPs) and Internet Service Providers (ISPs) globally. For more information, visit the company's website at www.atreuscorp.com or call [phone].

About the ASP Industry Consortium

Founded in May of 1999, the Application Service Provider Industry Consortium is an advocacy group of companies formed to promote the application service provider industry by sponsoring research, fostering standards, and articulating the measurable benefits of this evolving delivery model.

The founding members of the ASP Industry Consortium include AT&; AristaSoft Corp.; Boundless Technologies, Inc.; Cisco Systems, Inc.; Citrix Systems, Inc.; Compaq Computer Corporation; Cylex Systems, Inc.; Ernst &Young LLP; Exodus Communications, Inc.; FutureLink Distribution Corp.; GTE; Great Plains Software; IBM Corp.; Interpath Communications, Inc.; JAWS Technologies Inc.; Marimba, Inc.; Onyx Software Corp.; SaskTel; Sharp Electronics Corp.; Sun Microsystems, Inc.; The Taylor Group; Telecomputing ASA; UUNET; Verio, Inc.; and Wyse Technology.

Information on the ASP Industry Consortium is available on the World Wide Web at www.aspindustry.org or by contacting consortium headquarters at: ASP Industry Consortium, Inc., 401 Edgewater Place, Suite 500, Wakefield, Mass. 01880; Tel: [phone].

Atreus, the Atreus logo, xLINK and StartSmart are trademarks of Atreus Systems Corporation. All other trademarks are the property of their respective owners.