Celite Systems Introduces Product Family to Simplify DSL Provisioning for Multi-Dwelling Units.

Business Editors/High-Tech Writers

AUSTIN, Texas--(BUSINESS WIRE)--April 28, 2003

Solution Dramatically Reduces Installation and Service Activation

Costs and Complexity of Rolling Out Broadband Service to Apartments,

Hotels and Office Buildings

Celite Systems, Inc., (www.celitesystems.com) announced today it will deploy its DSL Headend technology for multi-dwelling units (MDU). The CSx00 MDU solutions enable local exchange carriers and building owners to cost-effectively deliver broadband services to an entire apartment or condominium complex, office high rise, hotel or other multi-dwelling unit with one installation process at the telephone equipment room or wiring closet. As a result, carriers and building owners can reduce the CAPEX and OPEX associated with provisioning and activating broadband access subscribers by more than 75 percent. This reduction in costs results in price flexibility for providers to capture additional broadband Internet customers.

According to recent research by In-Stat/MDR, MDU equipment revenues are poised to grow 311 percent from 2002 to 2007. With increased competitive pressure to profitably attract and service broadband customers, particularly in high density areas, the technology model that Celite Systems has developed for pre-wiring for broadband is a natural fit for the needs of local exchange carriers and building owners serving MDUs.

"Celite Systems' technology empowers our customers to apply our solution to a variety of different environments to help leverage the large, installed copper footprint," said Roger Dorf, president and chief executive officer of Celite Systems. "Offering the CS family of products, customized for the MDU market, was the next logical step in our product roll out strategy."

Through its point-to-multipoint product design, the CSx00 MDU can be installed in less than three minutes per subscriber loop to reach up to 400 subscribers without intrusion into the housing unit nor disruption to existing voice and data services. Celite Systems technology also uses the existing building wiring, without requiring line splitters or filters. In addition to simplified provisioning, carriers and building owners may access CeliteView, a comprehensive and intuitive management console, to manage the CSx00 MDU. This graphical and Web-enabled interface enables real-time performance monitoring of Celite Systems' MDU devices and associated subscribers.

For the subscriber, the process for activating broadband services is as simple as dial-up is today. By plugging in the CS1 broadband modem, connecting the computer and running Celite Systems' service activation software, users can become instant broadband subscribers any time night or day and eliminate the cumbersome and costly process of calling customer service, waiting to have an order processed and having a technician install the line.

About Celite Systems, Inc.

Celite Systems is changing the game for facility-based service providers, driving rapid and profitable deployment of broadband services to residential subscribers. By pre-wiring entire neighborhoods or multi-dwelling units for services, the company's outside plant products help service providers bring broadband to every home with only one truck roll. Incorporating novel technology that activates subscriber's broadband services as easy as dial-up, the up front cost of adding new subscribers is dramatically reduced. As a result of their innovative approach to broadband service delivery, Celite Systems CSx00 DSL Headend(TM) won a COMNET 2003 New Product Achievement Award and has been named Product of the Month (April 2003) by Telecommunications. Celite Systems was founded in July 2001 and received Series A funding in February 2002 from Austin Ventures and Highland Capital Partners. For more information on the company, please visit http://www.celitesystems.com.