Cayman Systems Extends Marketing Agreement With Nortel Networks For New ADSL Modem/Router.

STONEHAM, Mass.--(BUSINESS WIRE)--June 4, 1999--

Nortel Networks To Offer Service Providers New Integrated Solution

for Affordable Ethernet-to-Internet Access

Cayman Systems today announced that the company has extended its marketing agreement with Nortel Networks to market Cayman's new ADSL 3220H modem/router. By combining an ADSL modem with a multi-user LAN router, Cayman and Nortel Networks will enable RBOCs, ILECs and ISPs to offer their small business LAN users the ability to access the Internet or a remote LAN via shared ADSL services at a very affordable price.

The ADSL 3200H integrates Cayman's award-winning SOHO router, the 2E500, with an ADSL modem for a one-box solution, which allows LAN-wide Internet access over a single ADSL line at rates up to 8 Mbits/sec. In October, 1998, Cayman entered into an agreement where Nortel Networks began marketing the 2E500 alongside other Nortel Networks products. The extended agreement means that Nortel Networks and its resellers will be able to offer ADSL service providers yet another reason for their small business customers and prospects to shift to the superior access speeds and affordability of ADSL compared to 56K, ISDN and fractional T1 alternatives.

The router functionality of the ADSL 3220H is based upon the Cayman Swift IP software. Swift IP is the basis of all Cayman broadband routers, which have been named the SOHO routers of the year by CTI magazine for 1997 and 1998. In addition, the ADSL 3220H includes a list of features that combine to make installation and maintenance a matter of "zero configuration."

According to Stephen J. Edwards, vice president, Access Networks, Nortel Networks, "Affordability and zero configuration are necessities for small businesses. The Cayman ADSL 3220H fits well with our model of providing optimized IP networking solutions for service providers and growing businesses."

"We created the Cayman ADSL 3220H to be easy to buy and easy to configure," said Heidi Clark, president and CEO of Cayman Systems. "Now even small office/home office LAN users will have the bandwidth for applications - such as, web page downloads and streaming audio and video, telebusiness, video conferencing and collaborative computing - in an affordable, single-box solution."

The ADSL 3220H is a full-featured, 4-port ADSL router/modem. The router features a 10BaseT Ethernet connection to a LAN, a RJ-45 ADSL connection, and includes special security features to allow hosting of web services without risking the integrity of information on the LAN. The ADSL modem provides full rate ADSL throughput and compliance with both the ANSI T1.413 and the G.Lite hardware standards. The ADSL 3220H comes with a license for an unlimited number of users.

Cayman Systems is the customer premise equipment provider of choice for service providers that sell to the home and small office markets. Cayman's Zero-Configuration routers and turnkey support programs enable cable companies, C-LECs, ISPs, ILECs and RBOCs to easily deliver Ethernet-to-Internet DSL and broadband solutions for their small office customers. Founded in 1987, Cayman Systems is a privately held company based in Stoneham, Massachusetts.

Cayman Systems 2E500H, ADSL 3200, ADSL 3220H, SDSL 1401, LR700, LR 700-H, 2E500, HDSL 1000, HDSL 1001 and the Cayman Systems logo are trademarks of Cayman Systems, Inc. All other trademarks, brand and product names are the property of their respective holders.