Copper Mountain and Ipsilon Networks to collaborate on first DSL-IP dialtone solution; DSL and IP switching enable high-performance, on-demand Internet connectivity through IP dialtone.

SAN DIEGO--(BUSINESS WIRE)--June 2, 1997--Copper Mountain Networks announced today a development partnership with Ipsilon Networks whereby the two companies will work together to deliver IP Dialtone -- full-time connectivity to the Internet -- using Digital Subscriber Line (DSL) and IP switching technologies.

The partnership will integrate and cross-leverage the technology strengths of the two companies to provide high-speed, continuous access to the full range of existing and emerging Internet applications. The jointly developed solutions will address the needs of branch offices, small offices, home offices, teleworkers, and ultimately Internet consumers by supporting a range of data rates and services at highly competitive price points.

The announcement comes within weeks of the Networld+Interop keynote address by Tom Lyon, Ipsilon founder and CTO, that proclaimed the impact of IP Dialtone will be "both technically and culturally, as significant and far-reaching as telephony. The new Internet will be as critical and influential as we move forward as the phone system was over the 20th century. IP Dialtone means greater democratization through universal access; improved, enhanced, and cheaper communication; and better, faster dissemination of information."

Lyon's speech is available as video-on-demand from Ipsilon's home page (www.ipsilon.com).

"Lyon's vision of IP Dialtone requires permanent IP connections, high throughput, and enhanced networking capabilities," explained David Helfrich, vice president of marketing and sales at Copper Mountain. "Only DSL provides the availability, reliability, speed, and transparency to fully support IP Dialtone. The combination of best-in-class DSL networking systems from Copper Mountain and Ipsilon's IP switching intelligence and quality-of-service (QoS) can deliver on the full promise of IP Dialtone. And by pooling our talents and development efforts, we can dramatically reduce the time-to-market for deploying DSL-IP Dialtone Internet-wide."

IP Dialtone requires end-to-end support for IP transmission from the subscriber, through the telco central office, and across service provider networks and the Internet backbone. To date, DSL and internetworking vendors have been promoting discrete solutions in their own market space. The Copper Mountain-Ipsilon technology will provide the first comprehensive, integrated networking system for IP Dialtone.

"Copper Mountain's multi-speed DSL is a natural fit with Ipsilon's QoS rate-shaping capabilities," added Larry Blair, Ipsilon's vice president of marketing. "Our combined solution will allow service providers to seed the market for IP Dialtone, offer a range of profitable data services to a broad subscriber base, and build incremental revenue with high profit margins. And it will enable the proliferation of a host of new applications-such as voice over IP, video over IP, and IP multicast-that benefit from high-performance DSL connectivity to the Internet and cut-through IP switching across the Internet backbone."

"Internet use will continue to grow at such a rate that it is only a matter of time until connectivity becomes a commodity -- and as necessary a connection as the telephone for many homes," says Michael Howard, president and senior analyst at Infonetics Research Inc. (San Jose, Calif.). "Successful network service providers (NSPs) will differentiate themselves by offering advanced data services, just as phone companies today offer a range of voice options, such as call forwarding, special long distance rates, voice mail, and others. The IP Dialtone capabilities promoted by Copper Mountain and Ipsilon will enable NSPs to offer services such as guaranteed end-to-end bandwidth, low latency for multimedia communications and interactive games, priority service levels, security, and detailed accounting and billing."

The companies plan a multi-staged rollout that integrates functionality in existing Copper Mountain and Ipsilon products and allows for tighter technology coupling in products under development. Details of the solutions will be made available as products are readied for delivery.

About Copper Mountain Networks

Founded in January 1996 and based in San Diego and Mountain View, Calif., Copper Mountain Networks Inc. develops and markets a comprehensive family of DSL solutions that enable high-speed internetworking over existing copper facilities.

The company's mission is to be the catalyst for high-performance DSL networking and to deliver on the full promise of DSL through a range of market-driven products providing an affordable stepwise migration to higher throughput.

Copper Mountain's Red Rocket family addresses the bandwidth, reliability, ease-of-use, and cost concerns of remote offices and users. Its carrier-class CopperEdge solutions offer a robust and scalable platform for network service providers to satisfy the ever-increasing user demand for bandwidth, while generating a high return on investment.

Customers wanting more information about Copper Mountain products can contact the company at 415/938-6000 or visit its World Wide Web site at http://www.coppermountain.com . -0-

Note to Editors: The two companies will demonstrate their DSL and IP switching products at the upcoming SuperComm trade show in New Orleans, June 3-5, at Booth No. 3418.

Red Rocket and CopperEdge are trademarks of Copper Mountain Networks Inc. IP Dialtone is a trademark of Ipsilon Networks Inc.

CONTACT: Gallagher PR

Kim Diaz, 510/743-7830

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Copper Mountain Networks Inc.

David Helfrich, 415/938-6000, ext. 224

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