Com21 and Tdsoft Launch Cable Telephony Product Resulting from Collaborative Agreement; Toll-Quality Voice and Data Supported Over a Single Integrated Infrastructure.

Business Editors and High Tech Writers

CeBIT 2000

HANNOVER, Germany--(BUSINESS WIRE)--Feb. 24, 2000

Today at the CeBIT Tradeshow, Com21, Inc. (Nasdaq: CMTO), a leading global supplier of system solutions for the broadband access market, unveiled one of the first integrated voice and data solutions over hybrid fiber coax (HFC). The product resulted from a collaborative agreement announced last December with Tdsoft, a world leader in Voice over Next Generation Access (VoNGA).

The ComUNITY VoX(TM) (Voice over eXchange) joint solution, incorporating TdSoft VoNGATE(TM) as a voice access gateway, is coupled with Com21's ComUNITY Access(R) System platform to provide a cable-based telephony solution established on the E1 V5.2 public switched telephone network (PSTN) standard. V5.2 is a widely deployed open interface between the access network and the local exchange, approved by the European Telecommunications Standards Institute (ETSI).

Leveraging the Com21 infrastructure currently owned by the operators, the ComUNITY VoX is an end-to-end solution that allows operators to cost-effectively add new and exciting revenue-generating services for residential users, home offices, and businesses. The ComUNITY VoX system is one of the first to offer affordable, toll-quality telephony and broadband data.

"Because Com21 designed its cable modem system from the beginning with telephony in mind, it is uniquely positioned to take advantage of Tdsoft's VoNGATE Voice over ATM gateway solution," said Harvey Morrison, senior analyst and vice president of Technologie Mondiale. "Many of Com21's international customers can position their installed base of Com21's ATM-based modems to provide high-speed data and multiple voice lines to residential, as well as small-to-medium enterprises."

The ComUNITY VoX solution is transparent to cable subscribers, allowing them to bypass the traditional copper local loop network, while retaining their current set of calling and billing features. This transparency can significantly simplify operations, service provisioning and billing management for the cable operator. They will no longer need to separately dedicate bandwidth or system and human resources for the same set of subscribers, while adding toll-quality voice service over cable networks.

"We envision cable-delivered telephony to be a major application of both our ATM, and standards-based modem systems," said Paul Baran, chairman of the board and co-founder of Com21, Inc. "The company was created in the belief that the TV cable would be the preferred channel to deliver toll-quality telephony and high-speed data in the 21st Century. With the ComUNITY VoX solution, cable operators may offer their existing customers toll-quality voice services and fast Internet access over standard cable today."

"Our partnership with Com21 is another milestone for Tdsoft's unsurpassed track record in the V5 international market as well as in Voice over Next Generation Access (VoNGA)," said Yosi Albagli, president and CEO of Tdsoft. "With the ComUNITY VoX joint solution incorporating the VoNGATE Voice Access Gateway and the ComPORT modems, cable operators will be able to provide high speed, cost effective Internet access for small businesses, residential users and home offices."

VoNGATE is capable of efficiently delivering voice over Next Generation Access while fully leveraging existing PSTN infrastructures. A truly versatile system, VoNGATE supports any combination of ATM, IP and TDM access technologies and ensures connectivity to any voice switch supporting V5.2, GR-303, TR 008, CAS or proprietary interfaces.

Product Demonstration

At CeBIT, Com21 is demonstrating the ComUNITY VoX integrated voice and data solution at two stations located in Hall 17, stand B56, booths B9-B10. Each station contains a personal computer and a Com21 voice-enabled cable modem. Com21 booth visitors can experience Com21's Quality of Service (QoS) features by placing toll-quality voice calls while surfing the Web through the station's PCs and downloading large files.

Availability

Cable operators/system integrators interested in adding the ComUNITY VoX solution can contact a Com21 (+01 408 953 9100) or Tdsoft ([phone]) sales representative to obtain a price quote for their particular plant configuration. Customer trials will begin in Q2'00.

About Tdsoft

Tdsoft is a leading provider of Voice over Next Generation Access (VoNGA) solutions for the telecommunications industry. Tdsoft's open solutions enable Telephone Operators, New Competitive Access Providers and Service Providers to increase their revenues by adding voice services over existing next generation access infrastructure (Cable, xDSL and Wireless).

Tdsoft provides new and incumbent carriers versatile voice access gateways, access concentrators and switch simulators. More than 45 telecom and access equipment vendors in 25 countries use Tdsoft's products, which have been tested with 15 different switches worldwide.

Established in 1994, Tdsoft is a privately held company financially backed by leading international venture capital firms. With an experienced management team, growing product family and strong customer base, Tdsoft is well positioned to build and maintain a leadership position in Voice over Next Generation Access (VoNGA) market.

About Com21, Inc.

Com21, Inc., is a leading global supplier of system solutions for the broadband access market. The Company's DOCSIS, DVB and ATM-based products enable cable operators and service providers to deliver high-speed, cost-effective Internet and telephony applications to corporate telecommuters, small businesses, home offices and residential users. Com21 has shipped 370,000 cable modems worldwide through December 31, 1999.

Com21 is an ISO 9001 registered company headquartered in Milpitas, California, USA, and maintains domestic and international sales and support locations in the United States and Canada, Europe, Asia, and Latin America.

Safe Harbor Clause

This press release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933 and Section21E of the Securities Exchange Act of 1934, and is subject to the safe harbors created by those sections. Those forward-looking statements include statements related to: the ability of Com21, Inc. to continue to meet marketing, technology and customer demands as it relates to its products within the broadband market; and Com21's ability to its ComUNITY VoX, a V5.2 telephony solution and its agreement with Tdsoft as a commercial solution for the international markets. Actual results may differ materially due to a number of factors, including the agreement between Com21 and Tdsoft as well as numerous technological, operational and financial challenges associated with deploying, manufacturing, marketing, distributing and servicing broadband PSTN products. The matters discussed in this press release also involve risks and uncertainties concerning Com21's products and services described in Com21's filing with the Securities and Exchange Commission (SEC). In particular see the risk factors described in the Company's most recent Form 10K and Form 10Q as filed with the Securities and Exchange Commission. Com21 assumes no obligation to update the forward-looking information contained in this press release.

Com21(R) and ComUNITY Access(R) System are trademarks or registered trademarks of Com21, Inc., Milpitas, California, U.S.A. All other trademarks are the property of their respective owners.