BRECIS Wins $15 Million Order to Support Landmark Indonesia Voice over IP Initiative.

Business Editors/High-Tech Writers

SAN JOSE, Calif.--(BUSINESS WIRE)--May 29, 2003

VoIP and Multi-Service Gateways Powered by BRECIS Processors Planned

for over 1 Million Indonesian Homes and Small Businesses

BRECIS Communications Corporation, the leading provider of Multi-Service Processors (MSPs), today announced that it has won a $15 million contract with Syspol Co. Ltd. of South Korea to provide the processor platform at the heart of a groundbreaking program to bring multiple services via broadband to virtually all of Indonesia. Syspol, prime contractor to Indonesia's PT TELKOM, will be building and deploying a new system that will provide telephony, high speed Internet access, multi-channel CATV, and other value added services to over one million homes and offices in Indonesia over a single, broadband "pipe." BRECIS processors will break out the relevant services at each customer premise inside of Syspol access devices. PT TELKOM is the leading information and communications service provider in Indonesia.

"Indonesia is representative of a country where legacy telecommunications services are not as firmly entrenched as they are in other areas, such as the United States," said Kurt Jun, vice president of Syspol. "As a consequence, there is a great opportunity to simply skip one or more generations of technology, and simply build out a state-of-the art, all-broadband, all-digital telecommunications system to every corner of an entire country that provides voice, high-speed Internet, and cable TV as an integrated service. That is what we are doing with PT TELKOM in Indonesia. BRECIS is key to this, as its Multi-service processors make high-performance multi-service gateways affordable at the customer premise."

In this project, Syspol and its partners will implement a Hybrid Fiber Coax (HFC) cable network nationwide in Indonesia, and supply VoIP (voice over IP) service, broadband Internet service, and cable TV service exclusively to PT TELKOM. Over the next four years, Syspol expects that the service will be accessible to over one million subscribers. BRECIS will be supplying a variety of its multi-service processors to Syspol, which has designed several types of customer premise equipment to go into homes, telephone kiosks, and small businesses in Indonesia.

According to Jun, BRECIS was chosen for this project because it is the only company that has high voice quality and the ability to efficiently handle multiple services on one chip -- all at a cost-effective price. Moreover, he said, "BRECIS has built flexibility into its multi-service processors that makes them particularly useful in markets where line conditions can differ dramatically throughout the network."

George Alexy, BRECIS president and CEO, stated, "We are very excited about working with Syspol, as this initiative exploits the power of the BRECIS Multi-Service Processor and accompanying software to deliver VoIP."

According to Alexy, BRECIS' technology was deliberately developed with a "world-friendly" architecture - that is an architecture that has the foundation to deploy multiple services, but can be used in many different environments. "Unlike the core of the network, the access layer of the network is not nearly as homogenous. Our technology was designed to be easily and cost-effectively utilized, whatever the network structure." Alexy added that BRECIS is seeing "outstanding traction" with its multi-service processors, both in international venues where the opportunity or desire exists to essentially start with a "clean sheet of paper" in planning or modernizing a national communications infrastructure, as well as in situations where there is migration from a legacy telephone network to a modern packet network. Moreover, Alexy explained, while this Syspol relationship demonstrates the value of the MSP to provide VoIP and other services over a cable infrastructure, a recently announced design win with Ericsson, demonstrates BRECIS' ability to provide a VoIP and multi-service infrastructure over DSL. The Syspol program takes advantage of BRECIS' complete VoIP product family, including the newly released MSP2020 and MSP5000 products (see separate announcement).

About BRECIS Communications

BRECIS is the inventor of a new class of single-chip processor called a "Multi-Service Processor" (MSP), that worldwide has become the de facto standard platform for the low-cost design and manufacture of high-performance, broadband security, routing, and multi-service appliances for the SOHO and SME markets. Original equipment manufacturers in Japan, Taiwan, Southeast Asia, Europe, the U.S., and elsewhere have found BRECIS' groundbreaking multi-service, "system-on-a-chip" architecture; its broad and growing processor family; and its leading-edge security, routing, VPN, and VoIP software; to be vital for effective deployment in their local, broadband CPE markets and on the global stage.

For end users, BRECIS Multi-service processors make applications such as high-performance Internet access, multi-line voice over packet-based networks, heightened security, virtual private networking, voice-enabled web content, and entertainment on demand, increasingly practical, available, and affordable.

BRECIS is a late-stage, venture-funded company with a strong customer portfolio, and investors that include Crosslink Capital, Focus Ventures, InterWest Partners, Norwest Venture Partners, and Sequoia Capital. The company is headquartered in San Jose, California, with offices in Taiwan and Japan.

Note to Editors: "BRECIS" is a registered trademark of BRECIS Communications Corporation. All other trademarks and registered trademarks are those of their respective companies.

Additional background information is available at www.roeder-johnson.com.