Comstock Telcom to Resell Catena Networks' CNX-5 Broadband DSL System to Independent Carriers; Three More Service Providers Now Deploying the CNX-5 in Their Networks.

Business Editors

SUPERCOMM 2002

Booth #23666

ATLANTA--(BUSINESS WIRE)--June 3, 2002

At SUPERCOMM 2002 today, Catena Networks announced that it has selected Comstock Telcom to resell its CNX-5 Broadband DSL System to the majority of independent local exchange carriers, most of which are rural service providers.

To date, Comstock has secured CNX-5 purchase orders from several carriers -- including CC Communications, NTELOS and Whidbey Telephone Company -- and has begun field trials with three others.

"As Catena aggressively tackled DSL deployment issues that hamper rural carriers, we wanted a sales partner that had a solid base in working with independent operating companies, especially in their access networks," said Rick DeGabrielle, vice president of sales for Catena. "With more than 15 years of experience, a strong sales network and extensive knowledge of Digital Loop Carriers, Comstock was the ideal choice to help Catena accelerate DSL deployment."

The CNX-5 Broadband DSL System is a card-for-card upgrade solution for Lucent SLC(R) Series 5 (SLC-5) Digital Loop Carrier systems. It enables service providers to deliver Plain Old Telephone Service (POTS) and DSL services on any copper pair, without reducing the number of available POTS lines.

"Many of our customers that use the SLC-5 in their networks are searching for an economical way to offer DSL service to their subscribers, especially in rural areas," said Ted Jolley, general manager for Comstock. "Catena's CNX-5 system fits our customers' needs perfectly, and Comstock is pleased to be working with Catena to help extend the footprint of DSL in underserved areas."

According to George Henny, advanced technologies manager for Whidbey Telephone Company, located on Whidbey Island, Wash., "The CNX-5 helped us broadband-enable our existing equipment without losing POTS lines. With the card-for-card replacement design, the CNX-5 enabled us to easily upgrade the SLC-5s in our network to offer DSL service."

The CNX-5 provides a cost-effective, scalable solution for deploying DSL service to the 20 million subscribers served by SLC-5 remote terminals. Service providers can add linecards as needed to expand DSL availability in two-line increments. This simple card-for-card upgrade eliminates the need for overlay solutions such as network-side POTS splitters, mini-RAMs and remote DSLAMs. Once installed, carriers can provision DSL via the CatenaView Element Management System, without costly truck rolls.

Catena will demonstrate the CNX-5 system and the SUPERQuest award-winning CN1000 Broadband Loop Carrier in booth #23666 in hall B4. For more information, contact Catena at 866-2CATENA or visit the company's web site at www.catena.com.

About Catena Networks

Catena Networks, Inc. builds innovative broadband access solutions that are designed to enable facilities-based telecommunications carriers to achieve mass-market deployment of plain old telephone service (POTS) and broadband digital subscriber line (DSL) service on a single access line, and to facilitate access network convergence. Headquartered in Redwood Shores, Calif., the company operates world-class research and development facilities in Ottawa, Ontario, Canada and has more than 300 employees across North America. Founded in 1998, Catena is a privately held company that has secured U.S. $192 million in venture financing. For more information, please access www.catena.com.

About Comstock Telcom

Comstock Telcom has more than 15 years experience as a provider of new and refurbished telecommunication products, specializing in central office, remote terminal and transmission equipment. Among the breadth of products and services offered are circuit packs, complete wireline, optical and wireless systems, asset recovery and de-installation of equipment. The company's customer base includes local exchange carriers, original equipment manufacturers, long distance carriers and other large organizations with diverse telecommunication requirements. Comstock is headquartered in Reno, Nev. and can be reached at 775/856-2227 or [e-mail] or on the Web at www.comstocktel.com.

This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These and all forward-looking statements are only predictions or statements of current plans that are constantly under review by the company. Such statements are qualified by important factors that may cause actual results to differ from those contemplated, including those factors detailed from time to time in the company's Securities and Exchange Commission filings. The foregoing information should be read in conjunction with the company's filings with the U.S. Securities and Exchange Commission including, but not limited to, reports on Forms 10-K and 10-Q. The company has no obligation to update or revise these forward-looking statements to reflect the occurrence of future events or circumstances.

Catena, Catena Networks, and the Catena Networks logo are trademarks of Catena Networks, Inc. All other trademarks or service marks mentioned in this document are the property of their respective owners.