Copper Mountain Introduces High Port Density G.lite Line Card for Its CopperEdge Family of DSL Concentrators.

RESTON, Va.--(BUSINESS WIRE)--Sept. 27, 1999--

Company Brings High-Speed Data and POTS Voice, Integrated over

One Line, to Residential DSL Market

Copper Mountain Networks, Inc., (Nasdaq:CMTN) today announced that it supports the G.lite standard for Digital Subscriber Line (DSL) access technology with a high-density, 24-port line card for its family of CopperEdge(r) DSL concentrators. Copper Mountain's G.lite solution enables Incumbent Local Exchange Carriers (ILECs) and Competitive Local Exchange Carriers (CLECs) to offer telecommuters and technologically advanced families (TAFs) cost-effective, high-speed, always-on Internet and remote LAN access integrated with lifeline Plain Old Telephone Service (POTS) voice on a single copper loop. With an installed base exceeding 2,500 DSL concentrators in 50 metro areas within 27 states and Canada, Copper Mountain's CLEC and service provider customers can hot-insert G.lite modules into their existing CopperEdge chassis, use their existing CopperView(tm) network management tools to provision and manage new G.lite DSL connections, and very quickly attain G.lite market coverage.

Editors note: Copper Mountain is unveiling its G.lite DSL line card at Booth No. 200 at the DSLcon'99 Fall Conference and Exhibition, being held at the Hyatt Regency Hotel in Reston, Virginia, from Sept. 27 through Sept. 29. In addition, the company will demonstrate its other Voice-over-DSL solutions at its booth.

"Copper Mountain is already the acknowledged leader in the market for business DSL," said Rick Gilbert, president and CEO of Copper Mountain. "By adding this new G.lite capability to our concentrators, we expect to extend our dominance in the DSL arena to a wider market. Telecommuters and technologically advanced families are hungry for more bandwidth, but have had to weigh previous obstacles of price, installation complexity, and the need for more than one line. Our G.lite solution gives carriers a pragmatic way to offer this market a much lower-priced service, while protecting their existing investment in Copper Mountain equipment."

Copper Mountain's new G.lite line card protects carriers' existing investment in CopperEdge concentrators, allowing them to mix and match the new line card with Symmetric DSL (SDSL) and ISDN DSL (IDSL) line cards, and run all three DSL variants concurrently from a single chassis. Copper Mountain's G.lite solution further protects carriers' investment in existing backbone networks as it operates at a pragmatic speed of up to 1.5 Mbps to end users -- and does not necessitate the backbone upgrade required by Full-Rate ADSL solutions. In addition, Copper Mountain's G.lite line card enables its multi-tenant unit (MTU) service provider customers to integrate POTS and data services by installing G.lite line cards in the DSL concentrators located in building basements, and using the existing copper wiring in building risers.

G.lite Standard Supports Concurrent POTS Voice and Data

G.lite, also known as G.992.2, is an International Telecommunication Union (ITU) standard approved in June 1999. Use of the G.lite standard enables Copper Mountain to support concurrent data and analog voice over the local copper loop at downstream speeds ranging from 64 kbps to 1.536 Mbps in 32 kbps steps and upstream speeds ranging from 32 kbps to 512 kbps, also in 32 kbps steps. G.lite extends to a maximum distance of 19,000 feet over 26-gauge wire and 26,200 feet over 24-gauge wire. In compliance with the G.lite standard, Copper Mountain's DSL concentrators enable end-to-end ATM on the DSL line from the subscriber's premise to the provider's Point-of-Presence (PoP) or enterprise headquarters.

With No Splitter Required at Customer Premise, G.lite Ideal for

Mass-Market Deployment

Unlike early versions of Full-Rate ADSL, which offer higher data rates but require service provider "truck rolls" and inside wiring at the residence, G.lite does not require a splitter at the customer premise, which greatly eases end-user provisioning, making it ideal for mass-market deployment. Instead, a standard POTS splitter is used back at the central office (CO), sending data to a CopperEdge concentrator and voice to a Digital Loop Carrier (DLC) or directly to a Class 5 Switch. Additionally, G.lite significantly reduces power consumption, greatly increases port density, delivers the line speeds users need at affordable prices, has a wide range of low-cost CPE options, utilizes a worldwide standard with ubiquitous interoperability, and has production silicon available today.

Intel is a driving force behind the G.lite standards and interoperability effort. "Intel is committed to advancing broadband communications technology and applauds the introduction of G.lite products like Copper Mountain's into the marketplace," said Kevin Kahn, Intel Fellow, director of Communications Architecture at the Intel Architecture Labs, and ADSL Forum Board of Directors member. "This is a positive step toward the acceleration of consumer-friendly DSL deployments which will enable more consumers to enjoy high-speed always-on Internet access in their homes."

"G.lite is turbocharging the DSL bandwagon," said Peter Meade, senior telecom analyst for Cahners In-Stat Group. "As G.lite has been developed with the needs of U.S. consumers in mind, it has the potential to reshape the consumer communications market. The availability of G.lite solutions from equipment providers such as Copper Mountain will enable a broader audience to embrace DSL technology. "It is exciting to see high-port density G.lite solutions coming to market." Cahners In-Stat Group expects G.lite to make significant inroads starting in 1999, with 29,000 new subscribers in North America. Exponential growth will begin next year, when new G.lite subscribers totals should exceed those of ADSL and SDSL.

Centillium Chipset Enables High Density

Copper Mountain's G.lite line card employs the CopperLite(tm) G.lite chipset from Centillium Communications, Inc. This cost-efficient chipset uses two chips, one analog and one digital, to support eight lines; other G.lite chip solutions require as many as three chips per line. Use of the Centillium chipset thus enabled Copper Mountain to develop a high-density G.lite line card with 24 ports. The CopperEdge 200 can support up to 192 G.lite ports, while the CopperEdge 150 can support up to 48 G.lite ports.

"We selected Centillium because they are focused exclusively on high-density G.lite silicon solutions," said Gilbert. "With Centillium we will be able to deliver 24-ports per line card, far surpassing the density of Full-Rate ADSL. Plus, Centillium offers two separate product lines, one optimized for CO equipment with 3 chipsets and the other for customer premises equipment (CPE) with one chipset. This will enable a wide range of low cost CPE options for G.lite subscribers."

"We are delighted to see the leader in business DSL take a leadership role in G.lite as well. Centillium has focused on G.lite from day one, and our CopperLite chipset is available in versions that are optimized for CO equipment and CPE. That enables us to support Copper Mountain directly with a high-port density G.lite chipset and indirectly with CPE chipsets that many of its partners will use in their premise devices," said Faraj Aalaei, co-founder and vice president of marketing for Centillium. "As the leading provider of DSL solutions for CLECs, Copper Mountain can assist its customers in seamlessly integrating G.lite into the thousands of CopperEdge systems already in operation -- and this will accelerate market acceptance of this promising new mass-market technology."

CopperCompatible(tm) Program Extended to G.lite CPE

Many of Copper Mountain's CopperCompatible(tm) partners are actively developing CPE that is compatible with Copper Mountain's new G.lite line card, and the company is extending the CopperCompatible program to include interoperability testing and certification for CPE that employs G.lite. Since Copper Mountain is fully compliant with the ITU G.lite standard, carriers using CopperEdge DSL concentrators will be able to offer their subscribers any G.lite CPE that is also fully compliant with the G.lite standard.

"Our use of the G.lite standard is completely consistent with Copper Mountain's previous open-CPE CopperCompatible(tm) initiative to expand the total marketplace for DSL," said Gilbert. "We expect that there will be a unprecedented number of G.lite CPE options for carriers and their subscribers to choose from, a situation that will drive down the price of CPE and broaden the market for G.lite services."

3Com Corporation, with whom Copper Mountain announced a strategic alliance for developing and marketing DSL CPE last December, today announced that it has entered into an interoperability agreement to develop its HomeConnect(tm) ADSL modems to be compatible with Copper Mountain's G.lite line card. In addition to supporting G.lite, 3Com's ADSL modem portfolio also supports the G.dmt standard. "3Com and Copper Mountain have a proven track record for bringing fast, user-friendly DSL access devices to market," said Jerry Devlin, vice president and general manager for 3Com's personal communications division. "3Com already offers SDSL and IDSL modems compatible with Copper Mountain's widely deployed CopperEdge platform, and we intend to be a leader in the market for G.lite modems as well. Interoperability with Copper Mountain's G.lite solution is an important element in attaining that leadership position."

Editor's note: see press release entitled "3Com and Copper Mountain Announce End-To-End, Interoperable G.Lite Solutions," also released today.

Copper Mountain is partnering with Creative Labs, Inc., to deliver high-speed Broadband Internet Access to the mass market. Creative Labs ADSL CPE modem uses Centillium's CPE chipset that employs the new Universal Serial Bus (USB) plug-and-play PC interface. "As the leading provider of multimedia products and peripherals for PCs, Creative Labs is ideally positioned to work with Copper Mountain to drive the G.lite market," said Craig McHugh, president of Creative Labs. "The fact that Copper Mountain, which has deployed more DSL equipment to CLECs than any other company, is now partnering with Creative Labs will help make that market potential a reality."

Price and Availability

Copper Mountain's G.lite line card will be available in December 1999 at a price of $11,995.

About Copper Mountain Networks

Copper Mountain Networks, Inc. (Nasdaq:CMTN) develops and markets a comprehensive family of DSL solutions that enable high-speed internetworking over existing copper facilities. The company's mission is to enable carriers and other service providers to offer a full range of high-performance, cost-effective data and voice services over DSL that are easy to deploy, use, and manage. Copper Mountain's CopperRocket(tm) CPE family addresses the bandwidth, reliability, ease-of-use, and cost concerns of remote offices and users. Its carrier-class CopperEdge(r) DSL concentrators and CopperView(tm) network management solutions offer a robust and scalable platform for carriers and multi-tenant unit service providers to generate a high return on investment while satisfying the ever-increasing user demand for bandwidth. Customers wanting more information about Copper Mountain products can contact Diana Helfrich at 650/687-3314, or visit the Company's World Wide Web site at http://www.coppermountain.com. For investor relations information, call toll free 877-INFO-CMTN (463-6268) or contact us at [e-mail].

This news release contains certain forward-looking statements that involve risks and uncertainties. Such statements are only predictions, and the company's actual results may differ materially from those anticipated in these forward-looking statements. Factors that may cause such differences include, but are not limited to, risks related to product development, our ability to keep pace with rapidly changing product requirements, market acceptance of our products, and our ability to meet product development and delivery schedules. These factors and others are more fully discussed under "Risk Factors" and elsewhere in Copper Mountain's Registration Statement on Form S-1 (No. 333-73153), as filed with the Securities and Exchange Commission.

Note to Editors: Copper Mountain and all Copper Mountain product names are trademarks of Copper Mountain Networks, Inc. Other brand and product names are trademarks of their respective holders.