Cayman Systems Named Small Company of the Year By Massachusetts Telecommunications Council.

STONEHAM, Mass.--(BUSINESS WIRE)--March 12, 1999--Cayman Systems, Inc., the broadband customer premise equipment (CPE) provider of choice for service providers that sell Internet access to the small and home office markets, was chosen by the Massachusetts Telecommunications Council as the "Small Company of the Year."

The award recognizes a company with less than $100 million of revenue that has used technological excellence and commercial skill to establish its place in the domestic/global telecom market.

"Cayman Systems was chosen because it displays a combination of superb technological flexibility, market focus and determination that exemplifies success among telecommunications companies in Massachusetts. We are very excited about Cayman's dramatic comeback from just a few years ago," stated Michael Harrison, Executive Director of the Massachusetts Telecommunications Council.

Heidi Clark, president and CEO of Cayman Systems, acknowledges that the company went through some difficult times beginning in late 1995. Founded in 1987, Cayman provided hardware that allowed Apple users seamless connectivity to cross platforms. When Apple's market declined dramatically, Cayman Systems restructured to focus on the broadband Internet access market. In addition to bringing in Clark to head the company, Cayman sought to reapply its legacy for user-friendly network connectivity and superb support for broadband SOHO users, service providers and system suppliers.

The result of the new strategy has been the remarkable re-birth of the Cayman brand. Cayman's "Zero-Configuration" Ethernet-to-Internet routers have been named "Product of the Year" by CTI Magazine for the past two years, as the company has formed alliances or partnerships with such industry leaders as Nortel, Nokia, Alcatel, Comcast, MediaOne, and Pacific Bell.

"We are thrilled to be recognized by the Massachusetts Telecommunications Council. Cayman truly had to reinvent itself and to forge a winning position in a very crowded market. We worked hard, and I would like to acknowledge all of Cayman's employees, customers, investors and vendors for their support and faith in us," Clark said during her acceptance speech. With a five-fold growth in sales from 1997 to 1998 and a projected income of $30 million in 2000, Clark has every reason to be optimistic about her company's future and is currently adding staff.

About Massachusetts Telecommunications Council

The Massachusetts Telecommunications Council, founded in 1993, is a nonprofit industry association representing 300 telecom and affiliated companies in the state. The organization's mission is to promote Massachusetts as a world center for telecommunications by building on the extraordinarily high concentration of telecommunications organizations doing business in the state.

About Cayman Systems, Inc.

Cayman Systems is the customer premise equipment provider of choice for service providers that sell to the small office market. Cayman's plug-and-play routers and turn-key support programs enable CLECs, ISPs, ILECs, and RBOCs to easily deliver Ethernet-to-Internet DSL solutions for their small office customers. Founded in 1987, Cayman Systems is a privately held company headquartered in Stoneham, Mass.

Note to Editors: Cayman Systems, SDSL1401, 2E500, 2E 500H, LR700, LR700-H, HDSL1000, HDSL1001, ADSL2000, SDSL1400, Zero-Configuration, Swift-IP, 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.