Cardinal Technologies Announces First Analog Modems That Upgrade to Both 56 Kbps and 128 Kbps.

LANCASTER, Pa.--(BUSINESS WIRE)--Nov. 11, 1996--

ISDN Unprecedented Cardinal technology lets customers upgrade as communications needs grow

Cardinal Technologies today announced a new family of 33.6 Kbps (bits per second) analog fax and data modems that enable customers to easily upgrade to 56 Kbps speeds as well as 128 Kbps ISDN (Integrated Services Digital Networks) for faster Internet connections.

Communications speeds continue to increase as technology evolves. As new data types become common on the Internet (graphics, video and sound), users want faster communications. Cardinal's unique 33.6 Kbps modems deliver what the user needs today, while providing them an easy upgrade path as their need for speed increases in the future. Cardinal modems are the only modems that can increase performance from 33.6 Kbps to 128 Kbps with the same device.

Users will be able to upgrade to either 56 Kbps analog or 128 Kbps digital with ISDN. Cardinal will implement the x2 56 Kbps technology which was recently announced by US Robotics. The x2 technology takes advantage of the digital connections already in place between the telephone network and central site equipment used by many Internet service providers and corporate remote access servers.

While 56 Kbps will provide a significant performance improvement for users, ISDN provides connection rates of up to twice the speed of any analog connection. ISDN, which is available to the majority of businesses and homes in the U.S., enables customers to connect to the Internet at 128 Kbps, nearly four times the speed of today's fastest

33.6 Kbps modems. Cardinal's new product line of upgradable internal, external and PC Card modems will start at an estimated street price of $149 and are expected to be available during the 1st quarter of 1997.

"Cardinal has continually given customers superior modem technology at a great value to help them communicate, share information, and explore the World Wide Web," said Kevin Doren, president and CEO, Cardinal Technologies, Inc. "Customers often agonize over modem purchases because speeds increase and standards change every year--quickly outdating their modem purchase. With Cardinal's 56 Kbps and ISDN upgradable modems, customers will be buying modems with the future built in. When customers demand faster Internet access, their Cardinal modem will be ready."

In developing the world's first ISDN upgradable modem, Cardinal included its own custom silicon chip, digital signal processing (DSP) firmware and software. This technology enables the company to bring products to market faster with the only modems that have the capability to add 128 Kbps ISDN or 56 Kbps technology in a cost-effective way. Patents are pending on this unique product design.

"Cardinal is accomplishing what was previously thought of as impossible," said John Troutman, vice president of advanced technology for Cardinal Technologies. "A modem uses a DSP to modulate a signal through an interface to an analog phone line. ISDN uses a completely different set of protocols to send a digital signal through an NT-1 to a digital telephone network. Previously there was no way to combine these functions on the same device in a cost effective way."

For the growing base of Internet users, 56 Kbps technology provides much faster access using an existing analog phone line. Cardinal has chosen to partner with US Robotics to deliver 56 Kbps based on the x2 protocol. The x2 technology is expected to be the dominant protocol used to deliver 56 Kbps modems and central site equipment in 1997. When a 56 Kbps standard is ratified by the International Telecommunications Union, Cardinal will deliver 56 Kbps products based on the standard. Pricing and availability for the 56 Kbps Option Kit will be announced at a later date.

"ISDN on Demand" hardware that enables the ISDN upgrade will come pre-configured on the Cardinal modems, including an Option Port where customers attach their ISDN connection. When customers decide to upgrade to ISDN, Cardinal will provide an ISDN Option Kit that includes the necessary software and ISDN cable connector for only $79 (estimated street price). Usage of the ISDN function will require the installation of an ISDN line and an account from an ISDN service provider.

With increased interest in the Internet, ISDN has grown in popularity during the past year. One computer industry analyst firm, Dataquest, estimates there are currently 4,000,000 ISDN lines in use worldwide and more than 11,000,000 lines expected to be in use by 1999.

National and local telephone company service providers have also stepped up efforts to provide ISDN services to their customers, lowering the cost of ISDN in general. In September, AT&T announced it would provide intrastate and intraLATA ISDN service to 48 states in addition to its interstate service throughout the U.S. and to 44 countries. "The popularity of ISDN and the projected growth of users in the coming years made it natural for AT&T to expand its ISDN services to our customers," said Dick Slezak, managing director of Global ISDN at AT&T.

Cardinal Technologies, Inc. manufactures modems and ISDN adapters for computers, which allow people to communicate and access information. Cardinal's world class products continue to receive the highest industry awards for superior performance and value. The privately-held company was founded in 1987 in Lancaster, Pennsylvania and is a member of the Paul Allen Group of technology companies. For further information, customers can contact Cardinal by phone at [phone] x2401, faxback service at [phone], or visit our web site at http://www.cardtech.com.

Cardinal Technologies, Inc.

1827 Freedom Road

Lancaster, Pennsylvania 17601 USA

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CONTACT: Beverly King, Cardinal Technologies

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Blake Stowell or Mark Molzen

Brodeur Porter Novelli 

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