China Unicom Selects Free Space Optics from Terabeam; Carrier to Deploy First FSO System to Close An SDH Fiber Ring in Chongqing, China.

Business Editors/High-Tech Writers

REDMOND, Wash.--(BUSINESS WIRE)--Aug. 13, 2003

Terabeam Corporation, a leading provider of broadband wireless systems, today announced that China Unicom, the only integrated telecommunications operator in the People's Republic of China and one of the two leading cellular communications operators in Mainland China, has purchased Terabeam's Free Space Optics (FSO) system for use in its network in Chongqing, China.

The Chongqing Branch of China Unicom (Chongqing Unicom) purchased the FSO system after the successful completion of testing of Terabeam's equipment in its network. As China's fourth largest municipality after Beijing, Shanghai and Tianjin, Chongqing is a very large metropolitan area with complex terrain, an environment which makes it difficult to trench fiber. Chongqing Unicom will deploy Terabeam's spatially diverse FSO system to close an SDH fiber ring in its network.

"We have been testing wireless technologies for use in our networks and are pleased with the performance of Terabeam's system," said Mr. Jian Ming Yu, Chief Engineer at Chongqing Unicom. "Terabeam's FSO systems will enable us to provide high bandwidth access to customers more quickly and cost-effectively than traditional fiber solutions."

"We're pleased to be working with a technically sophisticated customer like China Unicom to aid them in delivering secure, high-bandwidth solutions to their customers," said Daniel R. Hesse, Terabeam's chairman, president and chief executive officer.

Chongqing Unicom intends to use Terabeam's FSO systems to extend its network and to serve additional customers. Terabeam's FSO systems send an invisible, eye-safe beam of laser light through the air. The signal is carried on the same kind of light that is inside a fiber optic cable and is directed from rooftops, towers or directly through windows to connect customers to Chongqing Unicom's network. By avoiding time-consuming and costly trenching, Chongqing Unicom's customers can be served sooner and less expensively than if they had to wait for fiber optic cabling.

ABOUT TERABEAM

Terabeam is a leading provider of wireless fiber (broadband wireless) solutions that extend and optimize carrier and enterprise networks. The company's wireless fiber solutions use high frequency Millimeter Wave (60 GHz radio frequency) and Free Space Optics (invisible light beam) technologies. Operating at speeds of 125 Mbps to 1.25 Gbps, MMW and FSO systems enable network service providers and enterprise customers to achieve high bandwidth connectivity at significantly lower costs and deployment times than other high-data-rate technologies. Terabeam is ISO 9001 registered and certified. For more information, visit Terabeam's Web site at http://www.terabeam.com.

ABOUT CHINA UNICOM, CHONGQING BRANCH

China United Telecommunications Corporation is the only integrated telecommunications operator in the People's Republic of China and one of the two leading cellular communications operators in Mainland China. China Unicom operates multiple telecommunication and value-added services, including wireless, fixed local and long distance services. Chongqing Unicom is the provincial branch company of China Unicom that manages network construction, maintenance and operation in the Chongqing region. For more information about China Unicom and Chongqing Unicom, please visit www.chinaunicom.com.hk.

Terabeam(R) is a registered trademark of Terabeam Corporation.