Copper Mountain Introduces VicinityVoice 100 Local Trunk Gateway.

Business Editors/High-Tech Writers

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

Innovative New Product Works with Copper Mountain's VantEdge(TM) and

CopperEdge(R) Concentrators and with Multi-Vendor Softswitch

Packet-Voice Solutions to Reduce Cost of Transporting Local Phone

Calls

Copper Mountain Networks, Inc. (Nasdaq:CMTN), a leading provider of copper-based broadband access solutions, today introduced the VicinityVoice(TM) 100 Local Trunk Gateway (LTG). The VicinityVoice 100 LTG is a new class of product that enables providers deploying next-generation, packet-voice networks to reduce the cost of transporting local phone calls between broadband voice customers and the Public Switched Telephone Network (PSTN). Collocated in phone company wiring centers with Copper Mountain's widely deployed CopperEdge DSL concentrator or with Copper Mountain's new VantEdge Broadband Services Concentrator (Note to Editors: Please see the other press release Copper Mountain issued today: "Copper Mountain Introduces New Product to Dramatically Improve Economics of Large-Scale Broadband Networks"), the carrier-class VicinityVoice 100 LTG interoperates with the CopperEdge and VantEdge platforms and next-generation packet-voice solutions to send broadband customers' local calls directly to PSTN destinations served from the same wiring centers. By allowing broadband providers to send local PSTN-destined calls directly to their destinations through the wiring centers' Class 5 switches, the VicinityVoice 100 LTG enables providers to avoid the trunking costs associated with sending these calls through more distant Class 4 tandem switches. A typical wiring-center Class 5 switch serves between 20,000 and 30,000 Plain Old Telephone Service (POTS) phones. Between 20 and 25 percent of all voice calls are purely local, placed to recipients served from the wiring centers where the calls originate.

The VicinityVoice 100 LTG's local call-handling capability further enhances the cost advantages of next-generation packet-voice solutions -- most commonly referred to as "Softswitches" -- which include feature servers, media gateways, media gateway controllers, and SS7 gateways. Softswitch technology uses advanced signaling protocols like the Media Gateway Control Protocol (MGCP) to provide line-side calling features and voice-routing functions that have been traditionally supplied by more expensive, centrally located Class 5 switches. The new Copper Mountain VantEdge Broadband Services Concentrators and the popular CopperEdge DSL Concentrators are equipped with IP IQ(TM) -- Copper Mountain's Internet Protocol (IP) service intelligence -- which allows them to support Softswitch solutions by sending calls to the collocated VicinityVoice 100 LTG or to the wider voice transport network, as appropriate. IP IQ enables VantEdge Broadband Services Concentrators and CopperEdge DSL Concentrators to see IP voice packets, which contain information indicating whether a call is destined for a PSTN recipient served by the Class 5 switch in the same wiring center or a recipient elsewhere. The VicinityVoice 100 LTG converts IP voice packets to the Pulse Code Modulation (PCM) signals that are processed by Class 5 switches.

"The VicinityVoice 100 LTG is an entirely new class of product that enables broadband providers and other carriers to leverage packet-voice technology to substantially reduce the costs of providing local voice service to their customers," said Rick Gilbert, president and chief executive officer (CEO) of Copper Mountain Networks. "In the past, if a broadband voice customer placed a local call to a PSTN-connected pizza parlor around the corner, the provider would have to transport that call from a wiring center, over a leased line, to a Class 4 tandem switch many miles away and then haul it back to a Class 5 switch in the same wiring center. With the VicinityVoice 100 LTG, the provider can send the call to the pizza parlor from the VantEdge or CopperEdge Concentrator directly to the Class 5 switch and eliminate the backhaul costs. This results in significant ongoing savings, because the provider no longer needs to lease a line from the wiring center to a remote Class 4 tandem switch for purely local calls."

"Going forward, broadband providers must offer differentiated, value-added services to be successful, and voice will be an essential component of any successful provider's service portfolio," said Jeff Kuenne, director of technology planning at Birch Telecom. "Distributed packet-voice solutions will be key to cost-effective VoDSL service. Copper Mountain's new VicinityVoice 100 LTG works with its VantEdge and CopperEdge concentrators to enhance VoDSL cost-effectiveness by leveraging Softswitch technology to cut the costs of delivering local calls over DSL."

"The market for packet-voice service is poised for dramatic growth," said Erik Keith of Current Analysis. "Softswitch packet-voice solutions, which significantly improve the economics of IP voice service, will become increasingly prevalent as packet-voice service matures. With the VantEdge and CopperEdge Concentrators' IP service intelligence enabling Softswitch solutions in the wiring center and the new VicinityVoice 100 Local Trunk Gateway enabling significantly reduced operational costs for purely local packet-voice calls, Copper Mountain is well positioned to be a major player in the IP-voice solutions market."

International Data Corp. projects that voice traffic across IP networks will increase from 9 billion minutes in 2000 to 135 billion minutes in 2004, boosting IP telephony service revenue from $1.6 billion to $18.7 billion.

About the VicinityVoice 100 Local Trunk Gateway (LTG) Solution

An essential component of next-generation packet-voice networks, the VicinityVoice 100 LTG is a low-density, 192-port, NEBS-3-compliant media gateway designed to be collocated with Copper Mountain's VantEdge Broadband Services Concentrators and CopperEdge 200 DSL Concentrators in a wiring center. Working in conjunction with the collocated VantEdge or CopperEdge 200 and remotely located feature servers and media gateway controllers, the VicinityVoice 100 LTG enables providers to reduce the costs of voice service by sending locally destined packet-voice calls directly to Public Switched Telephone Network (PSTN) phones served from the same wiring center. When a call is initiated by a packet-voice subscriber, the remotely located feature server and media gateway controller work together to determine the call's destination. They encode this information in the voice packets, which are read by the VantEdge or CopperEdge Concentrator. If the call is destined for a PSTN phone served from the same wiring center where the VantEdge or CopperEdge Concentrator is located, the VantEdge or CopperEdge sends it to the collocated VicinityVoice 100 LTG. The VicinityVoice 100 LTG then converts the packet-voice traffic to 64 kbps Pulse Code Modulation signals and sends the call to the wiring center's Class 5 switch, which forwards the call to its final destination.

Availability and Pricing

The VicinityVoice 100 LTG will be generally available in Q4 2001, at a list price of $24,995.

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(TM) 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 Vicinity Voice 100 LTG. 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 Vicinity Voice 100 LTG; 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.