Callahan Broadband Wireless Inc. Invests in the Philippines' First Broadband Wireless Provider.

Business Editors/High Tech Writers

DENVER--(BUSINESS WIRE)--Aug. 15, 2000

Offers First High-Speed Internet Access for Business

Callahan Broadband Wireless, Inc., has agreed to invest as a strategic partner in MultiMedia Telephony Inc. to launch the first broadband service provider in the Philippines.

The investment in MTI, operating under the trade name "Broadband Philippines," will significantly upgrade corporate Internet capabilities, offering the first high-speed Internet access in the Philippines and other broadband communications services. Broadband Philippines will also expand much needed higher-level e-commerce services, including virtual private networks, business solutions and managed services.

Callahan Broadband Wireless' investment in the Broadband Philippines project will introduce a state-of-the-art technology known as Local Multipoint Distribution System (LMDS). LMDS transmits data via microwave frequencies using fixed wireless broadband networks. Over the life of the project, the total investment could be up to US$70 million. Consummation of the transaction is subject to regulatory approval. Callahan Broadband Wireless will be Broadband Philippines' strategic operating partner, providing strategic, marketing and technology management to the company in addition to financial support. Callahan Broadband Wireless Inc. was formed recently to accelerate Denver-based Callahan Associates International broadband activities in Europe, Asia, and South America. Investors in the new company and the Broadband Philippines project include Callahan Associates International, Angelo Gordon, The Edward P. Bass Group and Investcorp.

Mark Bell, CEO of Callahan Broadband Wireless, said, "The Philippines' Internet market is ready to take off. IT industries are mushrooming in the Philippines as Manila vies with Singapore and Malaysia to become Asia's Silicon Valley. The Philippines has been producing a surplus of skilled IT workers but lacks a reliable broadband infrastructure to support this growth. Callahan Broadband Wireless is excited to be taking an important step to address this need and looks forward to expanding further Asia's broadband Internet market."

Joey De Venecia, Chairman and CEO of Broadband Philippines, said, "Economic expansion and modernization have been hindered by the lack of high-speed Internet solutions and high telecom costs, which remain among the most expensive in Asia. Currently, only 11 percent of large businesses and two percent of total businesses have dedicated lines of 128 Kbps or faster. This is a tremendous move forward, not just for MTI, but for the Philippines business community as a whole. We could not have wished for a better partner in the Philippines than Callahan Broadband Wireless."

Mr. Bell continued, "Our LMDS broadband Internet Solution offers, in real time, rapid, revenue-led deployment as well as secure, reliable high capacity data transmission, from a minimum of 64Kbps to over 10Mbps service. The LMDS broadband last-mile network services will cost far less than fiber optics but offers similar network speed, security and reliability already in use in the United States and Canada. With MTI and LMDS in the Philippines, we have the opportunity to enter a high growth market with an extraordinary technology."

About Callahan Broadband Wireless Inc.

Callahan Broadband Wireless was formed to manage Callahan Associates' existing global Broadband Wireless operations and to accelerate Callahan Associates' business developments in the Broadband Wireless arena in Europe, Asia and Latin America. The company will develop its operations to meet local market requirements and to bring world class operating standards for Broadband access globally.

About Callahan Associates International LLC 

Callahan Associates International LLC is a global development and operations company focusing on global information, communications and entertainment markets. Callahan Associates is one of the leading cable communications operators in Europe serving more than 15 million franchise homes, including ONO, Spain's largest national cable operator, NC Numericable's cable operations in France and the North Rhine Westphalia regional cable operation in Germany. Upon closure of the acquisition of the Baden Wurttemberg cable networks from Deutsche Telekom expected in January 2001, subject to certain closing conditions, Callahan Associates' cable operations will serve approximately 20 million customers. Callahan Associates creates locally owned, managed and self-sustaining companies with opportunities in Europe, Asia and globally. www.callahanassoc.com

Angelo, Gordon & Co., L.P.

Angelo, Gordon is a privately held firm focusing exclusively on alternative money management activities, including private equity investments, opportunistic real estate, distressed securities and merger arbitrage, for institutional clients and high net worth individuals. These disciplines seek to generate absolute returns by exploiting market inefficiencies and capitalizing on situations that are not in the mainstream of investment opportunities. At present the Firm has approximately $5 billion under management.

Over the past few years, Angelo, Gordon has established a significant private equity business. In addition to its telecommunications investments, the Firm holds investments in financial services and Internet infrastructure industries. Angelo, Gordon's private equity investment strategy is to provide equity capital at attractive valuations to companies with exceptional management, sustainable competitive advantages and a well developed and high value added plan for use of the capital.

The Edward P. Bass Group

The Edward P. Bass Group is a diversified investment organization located in Fort Worth, Texas. The Group has interests in oil and gas, real estate development, domestic and international private equity, venture capital, and the management of absolute return investment strategies.

Investcorp

Investcorp, a leading global investment group with offices in London, New York and Bahrain, is particularly known for its corporate private equity business. From its inception in 1982, Investcorp has been active as a European investor with the focus and expertise appropriate to this investment market. It has successfully concluded over 55 corporate transactions across Western Europe and North America, with a total acquisition value of approximately $17 billion.

Over the past 18 months, Investcorp and its clients have been making a series of investments in telecommunications and technology, as part of a global initiative including Stratus Computer, a provider of fault tolerant servers for mission-critical business applications and Independent Wireless One, a Sprint PCS affiliate providing digital wireless services in the north-eastern U.S. More recently, Investcorp announced a $125 million investment in Telepacific Communications, a West Coast US single-source provider of converged communications services, as well as a $57 million investment in Aspective, the world's first wireless applications service provider (ASP).