Cayman Systems and Proxim Combining Wireless LAN With ADSL Modem/Gateway to Enable Low Cost, Broadband Internet Access for Multiple PC Homes.

STONEHAM, Mass.--(BUSINESS WIRE)--May 10, 1999--

Technology, Marketing Agreement to Support Broadband Service 

Providers With Easy-to-Sell-and-Support Family of ADSL Solutions for

Small Offices, Home Networks

Capitalizing on the growing demand for high speed ADSL Internet access to/from homes with multiple PCs, Cayman Systems today announced that they have developed a solution with Proxim, Inc. that allows broadband service providers, e.g. RBOCs, ILECs, CLECs, ISPs, etc. to offer shared ADSL services and wireless LAN functionality in a single-box, low-cost configuration. The solution will be displayed in Proxim's booth #2154 (North Hall) at Networld+Interop in Las Vegas this week.

The new product will combine Proxim's Symphony(TM) Cordless Networking Suite technology with Cayman's ADSL 3220H(TM) integrated Internet gateway and ADSL modem. Together, they will allow multi-PC homes or small offices to easily deploy the capabilities of an Ethernet LAN-without the need to pull wires through household walls-and to enjoy broadband Internet connectivity for all networked devices through a single ADSL connection.

"The Cayman/Proxim combo is the ultimate in tetherless solutions because you don't have the high cost of standalone wireless and DSL solutions - you get ADSL and wireless in one package," said Daniel D. Briere, president of TeleChoice, Inc., a telecom management consultancy. "That means DSL on your deck, on your dock, or in your dining room, for scarcely more than a DSL modem/router would normally cost."

By itself, the ADSL 3220H is a leading digital subscriber line modem/gateway/router that can be used to provide Ethernet-to-ADSL connectivity for small business customers by service providers such as Pacific Bell, SBC, SNET, Ameritech, and Bell South. Most such businesses already have a LAN in place and are seeking a simple, easy connection like the ADSL 3220H to the new broadband service. As ADSL is being offered to residential customers, RBOCs are learning that most such customers are multi-PC homes. Unlike their small office counterparts, home users cannot enjoy high-speed access for each PC because they do not have a home network.

"This is a win-win for everyone," said Heidi Clark, President and CEO of Cayman Systems. "Residential customers get the broadband Internet access and the LAN connectivity they desire, for a very low cost, while RBOCs get a family of SOHO solutions that improve the value of their service and lower the cost of installation and support."

"Broadband gateway technology and cordless home networking is a killer combination," said Brian Button, Proxim Sales and Marketing Vice President. "The same consumers that purchase broadband Internet services also tend to have multiple PCs and/or a notebook computer. This product will address both needs elegantly."

Cayman representatives said their new product is already being privately sampled to RBOCs around the country. Specific product features, pricing, and customer information will be announced within the next 90 days.

Cayman Systems is the customer premise equipment provider of choice for service providers that sell to home and small office markets. Cayman's Zero-Configuration(TM) routers and turnkey support programs enable cable companies, CLECs, ISPs, ILECs, and RBOCs to easily deliver Ethernet-to-Internet xDSL and broadband solutions for their small office customers. Founded in 1987, Cayman Systems is a privately held company based in Stoneham, Mass. Just named Small Company of the Year by the Massachusetts Telecommunications Council, Cayman has forged alliances or partnerships with such industry leaders as Nortel, Nokia, Alcatel, Comcast, MediaOne and Pacific Bell. For information, contact Richard "Koz" Korzeniewski, at [phone], Ext. 195. Or visit Cayman Systems on the World Wide Web at www.cayman.com.

Headquartered in Mountain View, Calif., Proxim, Inc. (NASDAQ: PROX) is the world's leading supplier of spread spectrum wireless LAN products to OEMs and wireless solutions providers. In 1994, Proxim was first to market with 2.4 GHz frequency hopping wireless LAN technology with its award-winning RangeLAN2(TM) product family, which has attracted more than 80 OEMs and wireless solutions providers worldwide. In 1998, the company introduced its RangeLAN802(TM) product line, which operates at 2 Mbps and is fully compatible with the IEEE 802.11 standard. In addition, Proxim has emerged as a leader in home networking solutions with its Symphony suite of cordless networking products for home and small office environments.

Proxim is a founding member of the Wireless LAN Interoperability Forum (www.wlif.com), established to deliver and test interoperable wireless LAN products and services. Proxim is also a core member of the Home Radio Frequency Working Group (www.homerf.org), which is committed to providing a broad range of interoperable cordless consumer devices. Visit Proxim at www.proxim.com.

Cayman Systems, 2E500, 2E500H, ADSL 3220, ADSL3220H, 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. Proxim, RangeLAN2, RangeLAN802, Symphony, Conductor, Maestro and Composer are all trademarks of Proxim. All other brand names are trademarks or registered trademarks of their respective companies.

BACKGROUND INFORMATION

About the Market

Market analysts throughout the industry are reporting on the phenomenal growth prospects for DSL to the home and networking within the home. For example:

-- Cahners In-Stat Group said that the U.S. home networking market is expected to grow over 600%, to $1.4 billion, by 2003.

-- IDC predicts that 49.6 million US households will have a home office by 2002, and 8.2 million homes will have a home network.

-- Both Odyssey and ZD Market Intelligence report that 50% of all homes now have PCs, and 33% are connected to the Internet.

-- Yankee Group reports that 30.5% of all PC households, or 13.4% of all US households, are interested in home networking products today. They also cite that households with multiple PCs will increase from 12 million today to 24 million in 2002, and the number of homes with cable or DSL Internet access will increase from 450,000 in 1999 to 7 million in 2002.

-- An analyst for Volpe Brown Whelan and Company stated that 1999 could be the year the networked home hits Wall Street screens. Other analysts have predicted that smaller firms and startups will be of most interest to investors.

-- In another recent Yankee Group study, the firm projects the CAGR of DSL services to small and medium size businesses to be 115% between 1998 and 2002, with as many as 1.44 million businesses with DSL connections by 2002.

-- ABI (Allied Business Intelligence) study says that ADSL modems will net 37% of the U.S. broadband market in 2004, surpassing cable modems' projected 26% share that same year.

About ADSL 3220H

The ADSL 3220H is a four-port, multi-user LAN gateway/router, with an integrated ADSL modem chipset, that allows LAN-wide Internet access over a single ADSL line at rates of up to 8 Mbits/sec. The ADSL 3220H is ANSI T1.413 and G. Lite compatible. The gateway part of the ADSL 3220H is based upon the Cayman Swift IP software. Swift IP is the basis of all Cayman broadband routers, including those that have been named SOHO Router of the Year for 1997 and 1998 by CTI Magazine.

About Symphony

Proxim's Symphony Cordless Networking Suite operates in the 2.4 GHz frequency band and utilizes frequency hopping spread spectrum radio frequency technology, which is both highly secure and exceptionally immune to interference. It delivers data rates of 1.6 Mbps in a single-cell environment with an indoor coverage radius of up to 150 feet, or enough area to cover nearly any single family home or small office. Symphony earned PC Magazine's Editors' Choice Award for home networking kits, CNET's Editors' Choice Award for networking kits, Home Office Computing magazine's 1998-HOC Editors' Gold Award for the best home networking product, and PC Computing magazine's 1999 "Best" Award for Wireless Networks for the home and small office.and Symphony is based on Proxim's award-winning RangeLAN2 products, which were the first to market in the 2.4 GHz frequency band in 1994. The RangeLAN2 product family is designed to provide the industry's best combination of features for wireless LAN applications, including high speed, long range, low power consumption, network scalability and advanced network management.