Digital Lightwave Introduces Internet Protocol - IP - Analysis Capabilities to Its Optical Network Test Products.

Business Editors/Technology Writers

CLEARWATER, Fla.--(BUSINESS WIRE)--Nov. 27, 2000

New Functionality to Address Dramatic Growth in IP Services

Running over High-Speed Optical Networks

Digital Lightwave(R), Inc. (Nasdaq:DIGL), a leading provider of optical networking products and technology, today announced an important enhancement to its optical network testing products, providing new capabilities to analyze Internet Protocol (IP) traffic running over optical networks. These enhancements will be available on the company's industry-leading portable Network Information Computers(R) (NICs(TM)) as well as its network-integrated Network Access Agents(TM) (NAAs(TM)), and will enable Internet Service Providers (ISPs), Inter-Exchange Carriers (IXCs) and equipment manufacturers to cost-effectively install and maintain emerging IP-based voice, data and multimedia services.

IP has long been the technology of choice to deliver data, and increasingly voice and multimedia, over the Internet and private networks. Now, as the build-out of optical networks continues, IP traffic running over Synchronous Optical Network/Synchronous Digital Hierarchy (SONET/SDH) and Dense Wavelength Division Multiplexing (DWDM) networks has dramatically increased. The new IP analysis technology for Digital Lightwave's current product portfolio extends the already comprehensive SONET/SDH, T-Carrier/PDH and ATM test functionality available on its NIC and NAA platforms.

"With the proliferation of the Internet, we're seeing an increasing demand from our customers for visibility into IP-based traffic traversing optical networks," said George Matz, executive vice president, global sales, of Digital Lightwave. "The new product enhancement provides a valuable tool that leverages our existing platforms to help our customers in development labs, systems integration, and the deployment and maintenance of IP services."

Digital Lightwave's portable Network Information Computers (NICs) provide easy-to-use installation and maintenance testing solutions for optical-based networks. The new IP-analysis option for the NIC offers comprehensive analysis capabilities for this emerging protocol at the high-speed optical transmission rates of 2.5 Gbps (OC-48c/STM-16c) and 10 Gbps (OC-192/STM-64). The company also plans to add the IP- over-SONET technology to its Network Access Agents, which provide remote optical monitoring and analysis capabilities, including multi-channel DWDM diagnostics.

In addition to the SONET/SDH analysis functionality, the NIC and NAA, with the new IP-over-SONET option, allow network technicians to verify point-to-point protocol (PPP) link establishment procedures, including link control protocol (LCP) and IP control protocol (IPCP). Users can generate and analyze test patterns as well as errors, enabling the detection of implementation errors and performance problems within the network backbone infrastructure and in metropolitan areas. Users will also be able to compile this information in the form of throughput statistics, latency measurements, valid and invalid packet counts and checksums, bandwidth utilization, error counts, and packet lengths.

Digital Lightwave's IP-over-SONET technology enhancements to the NIC and NAA are expected to commence shipping in the first quarter of 2001.

About Digital Lightwave, Inc.

Digital Lightwave serves the growing fiber-optic networking industry with products and technology that monitor, maintain and facilitate the management of high-speed communication networks. The company's product families include Network Information Computers (NICs(TM)), the industry's leading high-speed portable analyzers for fiber-optic network installation and maintenance testing and Network Access Agents(TM) (NAAs(TM)), which provide network-integrated, centralized performance monitoring and analysis for optical networks, including remote multi-channel DWDM diagnostics. Digital Lightwave also provides customized optical monitoring subsystems for OEM applications. News and information are available at www.lightwave.com.

Except for the historical statements made herein, this release contains certain forward-looking statements that may involve a number of risks and uncertainties. Factors that could cause actual results or events to differ materially from these forward-looking statements include: quarterly fluctuations in the company's operating results; control by a majority shareholder; dependence on a limited number of products; industry-wide component shortages; rapid technological changes; the company's ability to compete effectively with other companies; the company's dependence on major customers; the company's dependence on contract manufacturing and limited source suppliers; delays in product development and delivery schedules; the company's ability to expand its production and assembly operations; the company's ability to manage its growth; the company's ability to enter into strategic relationships; the company's dependence on key personnel; the company's dependence on proprietary technology; the company's success in defending significant litigation; liquidity risk and future capital needs; general business conditions; and other factors described in the company's filings with the Securities and Exchange Commission (SEC), including its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. Digital Lightwave assumes no obligation to update information contained in this release.

Editor's Note: Digital Lightwave(R), Network Information Computer(R), NIC(TM), Network Access Agent(TM), and NAA(TM) are trademarks of Digital Lightwave, Inc.