Copper Mountain Introduces New Product to Dramatically Improve Economics of Large-Scale Broadband Networks.

Business Editors/High-Tech Writers

PALO ALTO, Calif.--(BUSINESS WIRE)--May 21, 2001

New VantEdge(TM) 3000 Broadband Services Concentrator Enables Providers with Large Installed Infrastructures of ATM-Based DSL Access

Multiplexers to Slash Cost of Provisioning High-Value IP-based

Services

Copper Mountain Networks, Inc. (Nasdaq:CMTN), a leading provider of copper-based broadband access solutions, today announced the VantEdge 3000 Broadband Services Concentrator. The VantEdge 3000 is an entirely new class of product: Designed for the telephone central office wiring center, it brings IP service intelligence to an installed base of ATM DSLAMs, enabling broadband service providers to dramatically improve their operational cost-efficiencies and more easily scale their networks, as they rapidly expand services to tens of thousands of new subscribers. The VantEdge also provides carriers with a smooth migration from ATM to IP, enabling them to offload the flood of new Internet and IP services traffic from their ATM transport networks, and thereby reduce expenditures on new ATM switches.

"Copper Mountain's new VantEdge Broadband Services Concentrator enables providers with large installed bases of ATM DSLAMs to provision multiple, high-value services more cost-effectively and to scale their networks more easily and more quickly," said Rick Gilbert, president and chief executive officer of Copper Mountain Networks. "The value proposition for broadband carriers is compelling: high-value services to more customers, with lower capital costs and a lower cost of operation."

Providers with ATM-based DSLAMs have traditionally relied on ATM switches for Layer 2 aggregation and on centralized subscriber management systems for Layer 3 subscriber aggregation. As broadband access becomes a universal service, however, this approach will require massive new investments in ATM switches, and substantial operational costs for ATM network re-engineering and the daily provisioning of thousands of individual subscriber virtual circuits -- each with its own Quality of Service (QoS) parameters -- through the DSLAMs, the ATM switches, and subscriber management systems.

"The VantEdge Broadband Services Concentrator puts Layer 2 and Layer 3 aggregation functions where they belong -- in the wiring center with the DSLAMs," said Bryan Long, vice president of marketing at Copper Mountain Networks. "Some applications, such as voice over ATM, require end-to-end ATM virtual circuits. However, most new services are IP-based, and most of the volume of traffic is IP. It makes much more sense to aggregate the IP traffic at the DSLAM than to transport it in thousands of individual virtual circuits. In fact, it makes a lot of sense to offload this traffic from the ATM transport network entirely, and route it directly via the SONET infrastructure to a regional IP services platform."

Based on the latest ATM chipsets and IP network processors, the VantEdge Broadband Services Concentrator combines ATM support with IP service functions such as subscriber aggregation, policy-based class-of-service, traffic shaping, switching, and multicast.

"The ability to profitably offer concurrent, multiple value-added services like toll-quality voice, VPNs, and streaming video -- even as they continue to expand their networks -- will be the key to success for broadband providers going forward," said Kathie Hackler, vice president and chief analyst, telecommunications, for Gartner Dataquest. "Cost-effective provisioning of these services will be important for profitability and essential for network scalability. IP technologies enable highly cost-effective service provisioning and easy network scalability. Incumbent carriers need a way to adapt their legacy ATM-access infrastructure to take advantage of these IP technologies."

"ATM-based access solutions make service provisioning increasingly difficult and costly as providers expand their networks, because they force providers to provision end-to-end VCs every time they add customers, and every time they add a new service for a customer," added Jason Marcheck of the Strategis Group. "On the other hand, providers have invested substantially in ATM DSLAMs which are still serviceable, and replacing them is not an option. Copper Mountain's VantEdge 3000 Broadband Services Concentrator enables providers to leverage their existing ATM-based access infrastructure while at the same time realizing the cost efficiencies of IP-optimized network access solutions."

"Incumbent broadband providers with an extensive installed base of ATM-based DSLAM platforms have the port capacity to serve rapidly expanding markets," said Jon Cordova of Infonetics Research. "These providers face the challenge of cost-effectively provisioning and scaling their services through their installed port capacity. Copper Mountain's new, IP-optimized VantEdge 3000 Broadband Services Concentrator enables providers to meet this challenge by relocating and aggregating subscriber and service functions without spending additional capital on expensive ATM switches."

VantEdge 3000 Simplifies Provisioning, Improves Scalability,

Reduces Costs

Copper Mountain's new VantEdge 3000 Broadband Services Concentrator enables broadband service providers to substantially reduce their provisioning requirements, improve network scalability and reduce their operational costs and capital expenditures by relocating circuit and subscriber aggregation functions to the access network. Providers can subtend ATM DSLAMs deployed in a wiring center or in remote terminals to a collocated VantEdge 3000 and aggregate multi-service traffic from thousands of broadband customers onto a few shared virtual circuits to the network backbone. For example, providers subtending ATM DSLAMs to the VantEdge can aggregate all subscribers' best-effort Internet traffic onto one virtual circuit, premium access Internet traffic onto a second circuit, and toll-quality voice traffic onto a third.

The IP-aware VantEdge 3000 Broadband Services Concentrator makes intelligent traffic-forwarding and queuing decisions in the access network based on any combination of header information at Layers 2, 3, and 4, and aggregates traffic from subtended ATM DSLAMs at multiple levels. At Layer 2, it enables multiplexing of individual subscriber ATM PVCs from many subtended DSLAMs onto a single DS-3/E3 or OC-3/STM-1 facility, yielding significant savings in wide area network (WAN) backhaul costs. For Internet traffic transported over Point-to-Point Protocol (PPP), the VantEdge 3000 aggregates subscribers onto a single L2TP-based PVC from the wiring center. At Layer 3 and higher, the VantEdge aggregates like services from different subscribers onto shared virtual circuits to the WAN. At this level, the VantEdge 3000's IP IQ(TM) service intelligence employs state-of-the art classification, prioritization, queuing, buffering, and policy-driven forwarding techniques to aggregate end-users into service classes. Applying IP Class of Service (CoS), ATM QoS, and VLAN mechanisms, the VantEdge 3000 enables subtended ATM-based DSLAMs to interface with IP, ATM, and Ethernet network architectures. By enabling subtended ATM-based DSLAMs to interface with both IP and ATM network architectures, the VantEdge 3000 "future-proofs" providers' existing network-access investments at a time when next-generation all-IP and Ethernet based fiber technologies are beginning to displace legacy ATM solutions in the network's core.

About Copper Mountain's New VantEdge Broadband Services

Concentrator

The new VantEdge 3000 Broadband Services Concentrator employs the latest in hardware and software technology to provide unprecedented scalability, service intelligence, and performance. The VantEdge 3000 utilizes the latest-generation network processor architecture in an over 100 Gbps backplane to deliver over 1 million packets per second, more than enough to serve tens of thousands of subscribers. In addition to DS-3/E3 and OC-3/STM-1 interface modules, high-density ADSL and G.SHDSL subscriber-line modules enable future subscriber growth to be supported directly from the VantEdge 3000, rather than from subtended DSLAMs. Additional line interfaces, such as T1/E1, will also be available as line modules.

The VantEdge 3000 Broadband Services Concentrator is designed for "5 nines" availability (99.999% uptime), and delivers optional carrier-class redundancy for control, WAN, subtending, and line cards. WAN redundancy includes APS/MSP for SONET/SDH interfaces, and optional redundancy for multiple WAN facilities. The VantEdge 3000 supports N+1 redundancy for DSL and T1/E1 access, with protection switching for each line card via a Loop Services Extension Unit. This unit also provides splitters and loop-testing capabilities.

The VantEdge delivers enhanced applications at required service quality levels by implementing a variety of features, including:

-- Multiple levels of QoS per subscriber

-- IP Type of Service (ToS) and Diffserv support

-- ATM traffic shaping into real-time variable bit rate (rtVBR), non real-time
variable bit rate (nrtVBR), and unspecified bit rate (UBR) traffic classes

-- Policy forwarding based on application

-- Intelligent congestion management; and

-- Patented IP CAC technology for voice applications.

Building on the innovative networking models of Copper Mountain's industry-leading CopperEdge(R) DSL Concentrator, the VantEdge 3000 Broadband Services Concentrator delivers IP, Point-to-Point Protocol (PPP), and ATM-based networking features ideally suited for aggregating users into service classes, while maintaining strict control over service quality.

Availability and Pricing

The VantEdge Broadband Services Concentrator will be available in limited quantities in January 2002 and generally available in April 2002. List pricing for the VantEdge starts at $29,995.

About Copper Mountain Networks

Copper Mountain Networks, Inc. (Nasdaq:CMTN) manufactures intelligent DSL and aggregation equipment for central office, digital loop and multi-tenant unit (MTU) broadband networks worldwide. Its DSL solutions enable carriers and service providers to deliver cost-effective, high-performance data and voice services over existing copper telephone wiring. Its CopperEdge(R) 200 DSL Concentrator is deployed in some of the world's largest public networks, and its environmentally hardened CopperEdge(R) RT (remote terminal) DSL Concentrator extends the reach of DSL to the millions of customers served by digital loop carriers (DLCs). Copper Mountain's OnPrem(TM) MTU Concentrator offers a cost-effective and scalable platform for MTU service providers. With IP IQ(TM), Copper Mountain's robust Internet Protocol (IP) service intelligence, service providers can maximize bandwidth utilization, support value-added broadband services, and scale to meet the demands of hundreds of thousands of subscribers. Copper Mountain's CopperRocket(R) CPE family and CopperCompatible(R) program ensure that Copper Mountain DSL concentrators are interoperable with the broadest range of customer premise equipment (CPE). Customers wanting more information about Copper Mountain products or office locations worldwide can contact Richard Washbourne at 650/687-3380 or visit the company's World Wide Web site at http://www.coppermountain.com. For investor relations' information, contact Margaret Kuhn at 858/812-8265 or call toll free 1.877.INFO.CMTN (463-6268) or contact us at [e-mail].

Safe Harbor Warning

Portions of this release contain forward-looking statements regarding future events based on current expectations and are subject to risks and uncertainties, such as factors regarding the rate of market acceptance and the future business prospects of the VantEdge 3000 Broadband Services Concentrator. Copper Mountain wishes to caution you that there are some factors that could cause actual results to differ materially from the results indicated by such statements. These factors include, but are not limited to: factors affecting design, manufacturing, marketing, and other difficulties that could result in significant unexpected expenses or delays in the successful introduction, development, and enhancements of the VantEdge Broadband Services Concentrator; price competition in our industry and between DSL and competing technologies; our ability to penetrate the international, multi-tenant unit (MTU), and the incumbent telecommunications service provider (ILEC/IXC) market; quarterly fluctuations in operating results attributable to the timing and amount of orders for our products, the concentration of our revenue in a small number of customers, our ability to keep pace with rapidly changing product requirements, factors and market conditions affecting the telecommunications industry, the demand for DSL solutions, the rapid changes in the service provider landscape and among our CLEC customer base, and economic conditions generally. Prospective investors are cautioned not to place undue reliance on such forward-looking statements. Furthermore, Copper Mountain expressly disclaims any obligation to update or revise any forward-looking statements contained herein to reflect future events or developments after the date hereof. We refer you to the documents Copper Mountain files from time to time with the Securities and Exchange Commission, specifically the section titled Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2000 and other reports and filings made with the Securities and Exchange Commission.

Copper Mountain and all Copper Mountain product names are trademarks of Copper Mountain Networks, Inc. All other marks are the property of their respective owners.