Coherent Communications and Newbridge Networks Form Partnership.

LEESBURG, Va.--(BUSINESS WIRE)--Oct. 8, 1996--Coherent Communications Systems Corporation (NASDAQ: CCSC) of Leesburg, Virginia, has signed a multi million dollar agreement with Newbridge Networks Corporation for the worldwide supply of its market-leading EC-6000 Series 2 Digital Echo Canceller products.

The agreement will have an initial term of three years. As the 3900 MainStreet(R) Echo Canceller Series, the new product will be marketed in conjunction with the Newbridge 3600 MainStreet family of multiplexors, for voice applications requiring superior echo cancellation technology.

Newbridge Networks applied stringent testing of Coherent's products in the first quarter of 1996, followed by an audit of its design and manufacturing processes. After being satisfied with Coherent's ability to design and manufacture echo canceller products of the highest quality, Newbridge Networks submitted its specifications for the finished products to be sold under the Newbridge label. The EC-6000 passed, as did Coherent's procedures, and Newbridge will commence selling the echo cancellers under its MainStreet(R) product portfolio, effective September 1996.

Coherent's CEO, Daniel L. McGinnis, commented: "We regard the agreement with Newbridge Networks as an important strategic step for Coherent, endorsing our continued commitment to product innovation and manufacturing excellence. The synergy between the two companies is quite remarkable -- we both believe firmly in being proactive in the marketplace, as well as achieving fast time to market with our products. We look forward to continuing our excellent working relationship with the Newbridge team."

During their evaluation of the Coherent EC-6000, the Newbridge Networks research and development team applied a series of exhaustive tests including the simulation of some of the most difficult operational environments Newbridge has encountered to date, based on its extensive world-wide installed base of product. Their verdict was that they "could not fault" the echo canceller's design or performance. Commenting for Newbridge networks, Gordon Beall, Assistant Vice President and Business Manager says: "Coherent Communications is an industry leader in echo cancellation and Newbridge felt that a partnership with such a company would complement Newbridge's success in voice networks worldwide. Coherent was selected based on its superior product and commitment to continuous technology advancement."

Coherent Communications Systems Corporation is a worldwide leader in state of the art voice enhancement technology, spanning echo cancellation platforms and associated network software. The Company's products are used globally by major commercial telecommunications companies and network operators, including AT&T Wireless, Cellular One, British Telecom, Nokia, Telia, Mercury, Cable & Wireless, Telmex, StrataCom, Deutsche Telekom and France Telecom among the extensive list. Coherent is a fully accredited ISO 9001 company, dedicated to maintaining the highest quality standards at every level.

Newbridge Networks (http:/www.newbridge.com) is a global leader in asynchronous transfer mode (ATM) frame relay and time division multiplexing (TDM) networking systems, according to independent research. The company designs, manufactures and services a comprehensive family of networking products and systems that delivers the power of multimedia communications of organizations in more than 100 countries throughout the world. Newbridge products are the choice of an expanding range of customers which includes the world's 200 largest telecommunications service providers, as well as more than 10,000 corporations and government organizations. The company has facilities in Canada, the United States, Latin America, Europe, the Middle East, Africa, Asia and Australasia.

Newbridge Networks Corporation is a public company whose common shares are listed on the New York Stock Exchange (NN) in the United States and The Toronto Stock Exchange (NNC) in Canada.

EDITOR'S NOTE:

Also available via Internet Web Page: http://www.coherent.com. Photo available upon request.

Except for the historical information contained herein, this news release contains forward looking statements that involve risks and uncertainties associated with competition, market growth, customer acceptance, timely availability and the pricing of products as well as other risks detailed in the Company's SEC reports.

CONTACT: Coherent Communications

Diane McClelland, 703/724-7311

E-mail: [e-mail]

or

Garrett Axford

Georgina Garrett, 44-(0)-1273-441200