Cygnet Technologies Partners With Protel Services to Deliver First-Mile Broadband to Military Housing.

Business Editors/High-Tech Writers

LEWISVILLE, Texas--(BUSINESS WIRE)--August 14, 2001

Cygnet Technologies Inc., the leading developer and marketer of edge communications systems using VDSL, HPNA and Gigabit Ethernet technologies, announced today a national reseller agreement with Protel Services Inc. to provide broadband equipment and services to Department of Defense lodging facilities, colleges and other commercial lodging facilities served by the company.

The multi-year, multi-million agreement continues to validate Cygnet's position as a leading provider of VDSL and HPNA 1.1 technology products used to deliver high-speed Internet services over the first mile.

The military lodging installations currently served by Protel consist of tens of thousands of guest rooms, all of which will be fitted to receive low-cost high-speed Internet access service delivered using Cygnet equipment. Currently Cygnet products have been successfully deployed by Protel Services at Peterson Air Force Bases in Colorado, Fort Leavenworth, Kansas, and Fort Rucker, Alabama.

Protel Services will install a combination of Cygnet's VDSL (Very High Bit-Rate Digital Subscriber Line) and HPNA 1.1 (Home Phoneline Networking Alliance) edge communications systems for Internet access at the Department of Defense facilities. The first-mile systems are installed at temporary housing facilities used by military personnel and others attending training courses. Depending on the needs of the building's visitors and temporary residents, Protel will install the Sojourner VDSL access concentrator and Enabler bridge remote units, which deliver speeds of up to 10Mbps of symmetrical throughput. The Sojourner HPNA 1.1 and Enabler bridge remote to Ethernet units will be used when speeds of up to 1Mbps of symmetrical throughput are necessary. Both technologies deliver high-speed Internet access to multiple users within a building. The typical installation for this project will be within a guest room that is temporarily housing a military person.

"Protel Services recognized that Cygnet's ability to deliver multiple broadband solutions that provide reliability, flexibility and scalability was unique in the edge communications systems market," said Charles Schmidt, president and CEO of Cygnet Technologies Inc. "We recognized that Protel must provide equipment that is economical both on the initial installation and continued management of the network. Cygnet's first-mile systems meet those needs because of our UMA software intelligence built into every VDSL unit."

"When this project is fully implemented, it is expected to be the largest VDSL installation in the U.S., and Cygnet's technology allows us to mix both the VDSL and HPNA 1.1 technologies to deliver first-mile service," said Larry A. Rhone, president of Protel Services. "Additionally, Cygnet has future-proofed its communications systems with standard Internet protocols and development work with a variety of media, including fiber optics. This flexibility gives us the long-term growth partner we need to meet our obligations to the Department of Defense and other customers. The Cygnet VDSL and HPNA products make upgrades to this platform a must. Using these products and other support agreements that Protel has in-place, we can offer a solid low-cost, low-risk approach to providing a critical service to our customers."

Cygnet edge communications systems leverage the facilities' existing copper wire and telephone infrastructures, and no expensive wiring upgrade is necessary. End-users can immediately use new broadband services, like video conferencing, distance learning applications, pay-per-view movies and pay-and-play games.

Cygnet's Unified Management Access (UMA) embedded software architecture improves level of service and provisioning, quality of service and seamless delivery of broadband Internet content, all features deemed critical by administrators and those creating new revenue models. Its tight integration with Novell's NDS eDirectory product enables the automatic configuration of network devices, which increases productivity while reducing the number of on-site visits needed to service existing users and activate new ones. The unique combination of standards-based access mechanisms and a variety of user interfaces results in reduced training and administrative costs, potentially improving return on investment. This capability further reduces costs by smart device management and remote updates and upgrades of hardware.

About Cygnet Technologies:

Cygnet Technologies Inc. develops and markets edge communications systems to enable the broadband needs of the multi-dwelling unit (MDU), multi-tenant unit (MTU), single-family residential, campus and high-speed office markets. Cygnet Technologies' edge communications systems consist of access concentrators, bridge remote units and switches using VDSL, HPNA and Gigabit Ethernet technologies, and are sold to OEMs, service providers and system integrators globally. The company's Sojourner(TM) access concentrators, Enabler(TM) bridge remotes and Enterprise(TM) Gigabit Ethernet switches enable high-speed Internet access over existing copper wire infrastructure. Cygnet Technologies' feature-rich core software improves the time to market of the systems, and Unified Management Access(TM) software architecture provides companies the ability to reduce administrative and equipment costs. www.CygnetTechnologies.com.

About Protel Services:

Protel Services Inc. is a Texas corporation founded in 1988. Protel headquarters operation is located in Wichita Falls, Texas. Its core business includes the provision of turnkey communication service and dedicated high-speed Internet access services. Protel serves military lodging operations located throughout the United States under a competitively awarded long-term service contract with the U.S. government. Used by the Department of Defense, Protel provides no-cost revenue sharing communication service and offers high speed Internet access service as a priced service option. Protel develops and markets business application software. www.ProtelServices.com.