BroadBand Technologies Finalizes Expanded Strategic Alliance Agreement With Bosch Telecom.

RESEARCH TRIANGLE PARK, N.C.--(BUSINESS WIRE)--June 10, 1998--

Companies Will Develop and Accelerate Time-to-Market for

Advanced Full Service Access Network-Compliant Solutions

BroadBand Technologies, Inc. (NASDAQ:BBTK), a provider of integrated access platforms for the telecommunications industry, today announced it has finalized its expanded strategic alliance agreement with Bosch Telecom Gmbh. By utilizing the resources and expertise of both companies, BroadBand and Bosch will develop and accelerate time-to-market for advanced Full Service Access Network (FSAN)-compliant product offerings.

On May 19, BroadBand announced an agreement to expand its existing strategic alliance with Bosch to include developing, manufacturing and selling FSAN products. Under the terms of this agreement, Bosch is paying $14 million in cash payments to BroadBand as well as subsequent royalty payments. BroadBand has transferred intellectual property, employees and equipment to Bosch. The agreement calls for Bosch to develop new intellectual property for FSAN products and to license the new intellectual property back to BroadBand. In addition, the companies have agreed to international manufacturing and distribution agreements, as well as future cross supply agreements.

"This expanded strategic alliance with Bosch enables BroadBand to apply its leading technology against a wide set of global access opportunities," said David E. Orr, president and CEO of BroadBand Technologies, Inc. "It is the continuation of a successful partnership between BroadBand and Bosch, and enables us to reduce the time-to-market for advanced FSAN-compliant products. The rapid execution of the agreement represents BroadBand's singular focus on the implementation of our new business strategy. Our relationship with Bosch, combined with the other elements of the strategic plan already in-place, enables BroadBand to increase its market opportunities while reducing its cash consumption."

Bosch Telecom is the $2.9 billion telecommunications unit of the $27 billion German-owned Robert Bosch group of companies. It is a leader in Europe and other parts of the world, providing narrowband and wireless services to service providers through its advanced access systems.

FSAN is a global standard being developed by a 23 member interest group which includes twelve international and eleven U.S. telephone companies, including SBC, BellSouth and GTE, as well as Bosch and BroadBand. The FSAN initiative is centered on creating requirement specifications for access systems that provide both broadband and narrowband services.

The FSAN standard is very similar to the architecture of BroadBand's existing iFLX(tm) product. Both architectures incorporate high bandwidth, asynchronous transfer mode (ATM), passive optical network (PON) and Digital Subscriber Line (xDSL) technologies. By using the iFLX platform as the broadband foundation for the FSAN products and investing in additional development, the companies expect to have a distinct time-to-market advantage in developing FSAN-compliant products.

Strategic Focus on Local Loop Access

The expanded alliance with Bosch represents the second element of BroadBand's new business strategy. In February, BroadBand announced a three-part strategy to improve its financial position and target emerging needs in the established, high-growth local loop access market. As the first of the three initiatives, BroadBand signed multiple agreements with Lucent Technologies worth in excess of $50 million over three years. The second initiative, completed with Bosch, was BroadBand's intention to form a strategic alliance to evolve the iFLX platform to meet the emerging FSAN standard. The company's third strategic initiative involves development of an access product that capitalizes on its core competencies in ATM, broadband access and xDSL, as well as intellectual property BroadBand is receiving from Lucent. This new corporate strategy establishes a foundation for BroadBand to leverage its technical strengths to target the high-growth, $2 billion, converging loop access and data markets, while gravitating toward more independence and less reliance on video demand over an integrated platform.

About BroadBand Technologies

BroadBand Technologies, Inc., based in Research Triangle Park, North Carolina, was founded in 1988. It specializes in integrated access platforms, which combine ATM switching and transport with Digital Subscriber Line (xDSL) and Fiber-in-the-Loop (FITL) technologies, to deliver high-speed data and voice services as well as digital video. The company uses its access expertise in the development of its own loop electronics equipment and also supports other telecommunications equipment providers for broadband and optical local loop components. For more information on BroadBand Technologies, please see its home page at http://www.bbt.com.

This press release contains forward-looking statements including, but not limited to, the company's performance, development of an FSAN standard, development of new products, successful strategy implementation. The Company's Form 10-K, Form 10Qs and other documents on file with the Securities and Exchange Commission identify important factors which could cause actual results to differ materially from those indicated by the forward looking statements. However, forward looking statements are beyond the ability of the Company to control and in many cases the Company cannot predict what factors would cause actual results to differ materially from those indicated by the forward looking statements.

Note to editors: iFLX is a trademark of BroadBand Technologies, Inc. All other trademarks are registered trademarks of their respective companies.

CONTACT: BroadBand Technologies, Inc.

Dale Kirkland

919-405-4623

[e-mail]

OR

Copithorne & Bellows

Jon Bornstein / Debby Lewenberg

919-562-6787 / 617-450-4300

[e-mail]