Carrier Access and Arelnet Demonstrate Integrated Softswitch Network for Carriers and Service Providers.

Business/Technology Editors

BOULDER, CO;/NORWOOD, N.J./YAVNE, Israel--(BUSINESS WIRE)--JUNE 5, 2000

Carrier Access Corporation (Nasdaq: CACS), a leading provider of broadband access equipment and Arelnet Ltd. (Tel Aviv: ARLN), a leading provider of Voice over IP (VoIP) solutions, announced today a new end-to-end softswitch network integrating Carrier Access' Adit 600 customer service terminal as a media gateway and Arelnet's carrier grade i-Tone PRIME Gateway and call agent. The combined solution enables service providers to originate VoIP calls from customer premises using the Adit 600 and route them anywhere in the world through Arelnet's i-Tone PRIME gateway. Arelnet's MGCP / H.323 call agent and gatekeeper controls all calls. A live demonstration of the new offering will be shown at SuperComm 2000 in Atlanta, GA, June 6-8, 2000 (Booth 8007).

"This demonstration will showcase the Adit 600's capabilities as a media gateway for the next generation of softswitched networks," notes Mark Golaszewski, director of Broadband Services for Carrier Access. "Arelnet brings a wide portfolio of carrier-grade network elements, which complement the Adit 600 to create a highly efficient end-to-end softswitching network." When configured as a media gateway, the Carrier Access Adit 600 Customer Service Terminal provides multi-service access at the edge of converged packet networks. The Adit 600 packetizes voice using industry standard VoIP encoding and signals to softswitches using standard MGCP, Megaco/H.248, and SIP. The Adit 600 supports integrated IP routing and a rich set of customer service interfaces in a compact, easy to install platform supporting up to 32 Mb/s of total bandwidth.

"Working with an acknowledged market leader like Carrier Access presents Arelnet with an exciting opportunity to reach the U.S. CLEC market" said Sarig Zur, Arelnet's executive vice president of Sales and Marketing. "The Adit 600 and I-Tone PRIME bring together powerful access solutions at the customer premises and a carrier-grade gateway at the central office. The result is a carrier-grade platform for CLECs to deliver competitive end-to-end VoIP services." i-Tone PRIME is a hot-swappable, no-single-point-of-failure, highly scalable carrier-grade gateway that packs an extensive feature set required for the deployment of large and robust VoIP networks. Up to 24 T1s or E1s can be configured in a gateway that can be stackable to handle up to 5,000 simultaneous calls. The I-Tone PRIME's high density and excellent price-performance introduce a new dimension for converged networks.

About Carrier Access

Carrier Access is a leading provider of broadband digital access equipment solutions to communications carriers, including competitive local exchange carriers, incumbent local exchange carriers, independent operating companies, Internet service providers, and wireless carriers. Carrier Access products are used in the digital last mile for the provisioning of enhanced voice and high-speed data services by carriers to businesses, government and enterprise end users. Carrier Access' Access Bank(R), Adit(TM), Access Navigator(TM), and Wide Bank(R) family products are connected to T1, HDSL, digital radio, T3, and optical access and transport networks. Additional information about Carrier Access and its products can be found at www.carrieraccess.com.

About Arelnet, Ltd

Arelnet Ltd. (www.arelnet.com) is a leading provider of IP telephony solutions to carriers, next generation telecommunications companies, Internet service providers and value-added telecommunications service providers. The Company's i-Tone PRIME product line offers carrier-class VoIP equipment for carriers and NextGen telcos, including fault-tolerant gateways, gatekeepers, call-agents, SS7 and a variety of value-added services.

Arelnet Ltd. is owned by Arel Communications and Software Ltd. (NASDAQ:ARLCF), Nortel Networks (NYSE:NT), Elron (NASDAQ:ELRNF) and Keppel Telecommunications & Transportation.

Certain statements made herein that are not historical are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. Certain product features described herein will become available over the next few months. The words "estimate," "project," "intend," "expect," "believe," "hopeful" and similar expressions are intended to identify forward-looking statements. These forward-looking statements involve known unknown risks and uncertainties. Many factors could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, among others, changes in general economic and business conditions, inability to maintain market acceptance to the Company's products, inability to timely develop and introduce new technologies, products and applications, rapid changes in the market for the Company's products, loss of market share and pressure on prices resulting from competition, introduction of competing products by other companies, inability to manage growth and expansion, loss of key partners, inability to attract and retain qualified personnel, inability to protect the Company's proprietary technology and risks associated with the Company's international operations and its location in Israel. For additional information regarding these and other risks and uncertainties associated with the Company's business, reference is made to the Company's reports filed from time to time with the Securities and Exchange Commission.

This press release and prior press releases are available on the KCSA Worldwide Web site at http://www.kcsa.com/

All product names are the property of their respective owners.