ComStream Hi-Media and U.S. Robotics enter alliance for cable modems.

SAN DIEGO--(BUSINESS WIRE)--March 19, 1997-- ComStream's Hi-Media Division, a leading integrated circuit (IC) provider for the broadband digital communications market, and U.S. Robotics Corp. announced an alliance whereby Hi-Media will supply integrated circuits and other components to U.S. Robotics for use in U.S. Robotics' new cable access system and other broadband applications.

In September 1994, Hi-Media introduced the world's first integrated QAM demodulator with forward error correction (FEC) (compliant with the North America ITU standard) and is a major supplier of QAM products for digital cable and wireless cable applications. U.S. Robotics' new telco-return cable access system, which uses ComStream's QAM IC, is being demonstrated at the National Cable Television Association Cable '97 trade show in New Orleans, March 16-19.

"Hi-Media is extremely excited about working with U.S. Robotics in the broadband modem area," commented Stephen Blake, general manager of Hi-Media.

"U.S. Robotics' entry into the cable modem arena and the recent emergence of a common cable modem standard means significant volume may finally emerge in this industry later this year," added Greg Mauro, director of new business development for Hi- Media. "U.S. Robotics' established brand and distribution channels will allow these new products to be pushed at retail for use in both existing and upgraded cable systems -- this should really drive large volumes."

"Hi-Media's track record in DBS (direct broadcast satellite) and MMDS (multichannel multipoint distribution system) demonstrates that they can invent enabling transmission technology and cost-reduce it quickly," commented Semir Sirazi, vice president/general manager of U.S. Robotics' Cable Access Business Unit. "This will help U.S. Robotics to bring cable modem price points down to levels that will increasingly enable widespread consumer adoption."

U.S. Robotics is one of the world's leading suppliers of products and systems that provide access to information. The company designs, manufactures, markets and supports remote access servers, LAN switching equipment, desktop/mobile client products and modems, telephony products and handheld organizers.

U.S. Robotics' products connect computers and other equipment over analog, digital and switched cellular networks, enabling users to gain access to, manage and share data, fax and voice information. Its customers include Internet service providers, regional Bell operating companies, inter-exchange carriers and a wide range of other large and small businesses, institutions and individuals. The company's fiscal 1996 sales were $1.98 billion.

Based in San Diego, ComStream's Hi-Media Division is a leading systems-driven IC developer. Hi-Media's digital transmission ICs are in over half the direct broadcast satellite (DBS) set-top boxes shipped to date in the United States.

With over three million DBS ICs delivered, Hi-Media is also the dominant supplier for transmission components for the digital video initiatives of the telecommunications industry. As a solutions-focused business, Hi-Media offers market-leading ICs together with production-ready reference designs, network interface modules (NIMs), production tools and test equipment.

ComStream is also a leader in VSATs, earth stations, and modems for private networks and governments with offices in the United States, Canada, Mexico, Colombia, Indonesia, The People's Republic of China, Russia, and the United Kingdom. ComStream is a wholly owned subsidiary of Spar Aerospace Limited.

Spar, a leading Canadian advanced technology company, is in the communications, space, aviation and defense, and software industries. Operations are located in North America, Europe and the Pacific Rim, and nearly 70 percent of revenues are derived outside Canada. It is listed on the Toronto and Montreal stock exchanges. Stock symbol: SPZ. Web site address: www.spar.ca

CONTACT: ComStream

Donna Birks, 619/657-5005

ComStream Web site address: www.comstream.com

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The Townsend Agency

Carol Foster, 619/457-4888