BellSouth And FutureSmart Deliver Digital Pipeline to Florida and North Carolina Residents.

Business/High-Tech Editors

ATLANTA--(BUSINESS WIRE)--Feb. 20, 2001

Strategic Relationship with FutureSmart(R)Networks Provides

State-of-the-Art Infrastructure for Residential High-Speed

Internet Access and Other Digital Services

BellSouth (NYSE:BLS) today announced the deployment of its Digital PassportSM Services in three key development projects in Florida and North Carolina-Alhambra Place in Fort Lauderdale; Berkman Plaza in Jacksonville; and Kenton Place in Charlotte.

BellSouth, teamed with FutureSmart(R) Networks, is providing residents of these projects with a broadband home network system can that integrate voice, video and high-speed data services. The BellSouth Digital PassportSM home network system is designed to accommodate resident upgrades for home automation, home Local Area Network, audio distribution, and security.

The system includes a FutureSmart Networks state-of-the-art central wiring panel to distribute voice, data, and video to multi-media wall receptacles in each room of a house, condo or apartment. Each receptacle provides residents with connections to three types of wiring runs -- high-speed phone lines, high speed data lines, and coaxial cable for high quality video -- to best deliver multiple types of communications throughout the house, condo or apartment unit.

"With the emergence of broadband and the Internet, consumers who take advantage of these types of services in their business are demanding them in their homes," said Paul Roberts, director of Home Networking Solutions for BellSouth. "The residents of these three new developments are able to take advantage of these services, thanks to the structured wiring system and networking components that have been built into the homes and apartments."

Berkman Plaza is a premier 22 story high-rise on the north bank of St. Johns River in downtown Jacksonville, Florida. This 226-unit property, developed by The Harbor Companies, features outstanding views of downtown Jacksonville, Riverwalk, and the Jacksonville Jaguars sports complex. "We're pleased with the implementation of BellSouth Digital Passport Services at Berkman Plaza," said Alan Travis, a principal of Harbor Companies. "Potential residents are increasingly technology-savvy, and the availability of services such as BellSouth(R) Fast Access(R) DSL service, shared high speed Internet access and in-home computer networking definitely influences their decisions about where to rent or buy an apartment or home."

Alan added, "BellSouth Residential Solutions designed the end-to-end technology for advanced voice and high speed data for Berkman Plaza, from their local network facilities up to each floor and apartment. With BellSouth's Digital Passport structured wiring, BellSouth extends its high quality broadband services to each wall receptacle in our units."

The Digital Passport system allows residents to control and share information in their home. Telephones, home computer networks, internet-enabled appliances, security systems, entertainment and satellite TV, and home entertainment systems are all easily managed using the system. With a FutureSmart upgrade from BellSouth, home automation is made easy, allowing homeowners to control their security system, lights, air-conditioning, and more while away from home. It can work with the security system to send pager notification when trouble occurs or when a child arrives home from school.

BellSouth's Digital Passport Service has been installed in Alhambra Place, an ultra-upscale residential tower in Fort Lauderdale, Florida. This 16 story tower on the Intracoastal Waterway, features 23 palatial penthouse, villa, and veranda floor plans.

"Among the many amenities available in Alhambra Place residences, the Digital Passport Services rate very favorably among our condominium buyers," said Doug Perry, project manager for Alhambra Place in Fort Lauderdale, Florida. "The state-of-the-art structured wiring system means residents have fast, convenient access to voice, data, and entertainment throughout their homes. Our residents desire both high-tech conveniences as well as superior investment value from our distinctive homes. Alhambra Place owners get both with BellSouth, the latest in advanced BellSouth broadband services and an investment in broadband ready wiring versus increasingly antiquated traditional wiring.

Currently, 400,000-500,000 homes are being built each year across the nine states in the BellSouth region. According to Parks Associates Inc., a home technology research firm, developers and homeowners in the United States will spend an estimated $386 million on home networks this year. That figure is projected to grow to over $1 billion by 2004.

According to Gary Cangelosi, project manager for the Kenton Place development in Charlotte, North Carolina, "Kenton Place is a `Main Street Revival' concept that mixes residential apartments, commercial office space, and retail space into one integrated development. BellSouth and FutureSmart have provided a state-of-the-art pipeline for voice and data communications throughout the project. This provides tenants with important features like shared high-speed Internet access and computer networking. The BellSouth/FutureSmart infrastructure in each residence also ensures that we'll be ready for future technology enhancements."

FutureSmart Networks is the largest supplier of structured wiring and home networking systems to BellSouth. Last year BellSouth entered into a strategic relationship with FutureSmart to design and manufacture the distribution panels, service modules, and networking equipment for the Digital Passport Services program. BellSouth is also working with FutureSmart to jointly market Digital Passport Services and develop new hardware and software applications in cooperation with other companies.

"The FutureSmart/BellSouth relationship provides the ultimate in digital features and Internet access for the home," says Robert Kyle, CEO of FutureSmart. "When a homebuyer or tenant chooses a Digital Passport residence, they enjoy the immediate benefits of shared high-speed Internet access and integrated digital services. The design of the FutureSmart Home Gateway also gives them the ability to upgrade to additional products and services and ensures that they'll be ready for all future technology."

For more information about BellSouth Digital Passport services, builders and developers can contact 404/870-8733.

About FutureSmart(R)

FutureSmart Networks, Inc., a venture funded company headquartered in Murray, Utah, is a leading provider of digital communications and networking systems for homes, condominiums and apartments. The company's `Home Gateway to the Internet' provides complete residential infrastructure for Internet access, cable and satellite TV, computer networking, telephone, and security.

About BellSouth Corporation

BellSouth Corporation is a Fortune 100 communications services company headquartered in Atlanta, Georgia, serving more than 44 million customers in the United States and 16 other countries.

Consistently recognized for customer satisfaction, BellSouth provides a full array of broadband data and e-commerce solutions to business customers, including Web hosting and other Internet services. In the residential market, BellSouth offers DSL high-speed Internet access, advanced voice features and other services. BellSouth also provides online and directory advertising services, including BellSouth(R) Real PagesSM.com.

BellSouth owns 40 percent of Cingular Wireless, the nation's second largest wireless company, which provides innovative wireless data and voice services.