DSET's New GR-303 Solution Enables High-Speed Internet Access; Seven New GR-303 Customers Signed in Second Quarter.

BRIDGEWATER, N.J.--(BUSINESS WIRE)--August 20, 1998--DSET Corporation (NASDAQ: DSET) announced today that, during the second quarter, it signed contracts with seven new equipment vendors, each building solutions for high speed Internet access. The contracts range from $400,000 to $1.1 Million.

"These contracts help DSET enter the third quarter with better visibility than previous quarters and we are pleased to reaffirm our confidence in achieving the company's 1998 plan," said Bill McHale, president and CEO of DSET.

Equipment vendors need to offer the carriers a variety of solutions such as xDSL (Digital Subscriber Line), Wireless Local Loop and Hybrid-Fiber-Coax (HFC) so that they, in turn, can provide customers with high-speed Internet access. Each of these technologies can use the Bellcore GR-303 specification for interconnection at the central office switch. Use of GR-303 compliant solutions also offers carriers additional benefits. Incumbent local exchange carriers (ILECs), for instance, gain the ability to easily, and cost-effectively unbundle the local loop and comply with various access-related regulatory issues. Competitive local exchange carriers (CLECs) gain a time- and cost-to-market advantage using these advanced access solutions.

"The new DSET solution is a combination of pre-built network management components, integration services and development tools -- all of which support Bellcore's GR-303 specification," stated Paul Smith, DSET's senior vice-president of worldwide sales and marketing. "Historically, DSET has been the leading provider of development tools to network equipment vendors and carriers providing access to the public switched telephone network (PSTN). We have now leveraged the assets of our company (high quality development tools, professional services, and industry knowledge), and our six years of experience in the GR-303 space, to provide packaged solutions that help vendors get their high-speed access solutions to the carriers quickly."

ABOUT GR-303:

Developed by Bellcore as a technical specification for advanced subscriber loop access, GR-303 provides carriers with tremendous flexibility in their local loop architecture. Aside from connecting xDSL and HFC solutions to the central office for high-speed data transfer, GR-303 based access equipment enables carriers to service additional customers with their existing access media (copper twisted-pair) through dynamic line concentration. Carriers can also realize the benefits of deploying a software-controlled, distributed, intelligent network that can quickly and efficiently unbundle the local loop, rapidly make changes to customers' service options, and reduce maintenance and operating costs.

ABOUT DSET:

DSET, founded in 1989, is a leading provider of standards-based application development tools, custom application development services, Local Number Portability solutions and OSS Interconnect Gateway products to the telecommunications industry. The company's application development tools are used globally by network equipment manufacturers to build applications that manage network devices and provision new services such as voice, data and Internet access. The company's local number portability (LNP) and OSS interconnection solutions are used by carriers to facilitate the flow of information between carriers and their respective operational support systems (OSS's). DSET's Professional Services organization provides application development services for those customers without the internal resources to quickly build network management, number portability or OSS interconnection solutions.

The company has offices in Bridgewater, NJ, Richardson, TX, Campbell and Fremont, CA, a wholly owned subsidiary in Chengdu, China, and supports a network of distributors and strategic partners around the world.

Except for historical and factual information contained herein, all other information set forth in this news release represents forward-looking statements, including all statements about DSET's plans, beliefs, estimates and expectations. These statements are based on current estimates and projections that involve certain risks and uncertainties and could cause actual results to differ materially from those in the forward-looking statements. Investors are encouraged to consider these risks and uncertainties which are discussed in documents filed by DSET with the Securities and Exchange Commission, including, without limitation, fluctuation of quarterly operating results, dependence on a rapidly evolving telecommunications industry, and dependence on the TMN industry standard. DSET undertakes no obligation to publicly update any forward-looking statements whether as a result of new information, future events or otherwise.

Please visit our web site at www.dset.com.

    CONTACT: DSET Corp.
              Product:
              Alan R. Ehrlich, Product Marketing Manager
              908/526-7500 x223
                    or
              Investor Relations:
              Paul Lipari, Chief Financial Officer
              908/526-7500 x287