Elastic Networks' EtherLoop Technology Fully Compliant Under New ANSI Spectral Compatibility Standard.

Business Editors & Technology Writers

ALPHARETTA, Ga.--(BUSINESS WIRE)--March 6, 2001

EtherLoop(TM)deployable without restriction

on any copper telephone line

Elastic Networks Inc. (NASDAQ: ELAS) announced today that their EtherLoop Intelligent IP(TM) technology is fully compliant with the American National Standards Institute (ANSI) spectral compatibility criteria under the new T1.417-2001 standard.

Under this criteria, EtherLoop is deployable, without restriction, on any copper telephone line.

The ANSI spectral compatibility criteria specifies how xDSL systems must operate in order to co-exist and be considered non-interfering with other services that may be present in a telephone line binder cable. The unrestricted distinction further differentiates EtherLoop from technologies that are compliant, but restricted in terms of speed and reach, such as SDSL, HDSL, and g.SHDSL. As a spectrally compatible technology, EtherLoop offers carriers a reliable, high-speed access solution with the advantage of simple deployability over existing copper phone lines, without the need for costly and time consuming line conditioning and binder management.

"We are pleased that EtherLoop spectral compatibility capabilities have been verified by industry leading test labs," says Guy Gill, president and CEO of Elastic Networks. "This distinction means our customers and the industry can take full, unrestricted advantage of EtherLoop's speed, reach, and ease of deployment."

EtherLoop Technology is Ethernet over normal copper phone wiring at distances to 21,000 feet and beyond, at speeds up to 6Mbps. EtherLoop takes the packet functionality of Ethernet (i.e. burst transmission) and combines it with advanced modulation techniques (i.e. compression) and patented adaptation algorithms for managing whole groups of phone lines as a single system. Because it is a burst-mode technology, EtherLoop is not impacted by imperfections in the copper cable plant such as bridged taps and wire gauge changes, characteristics of so called "dirty copper" that compromise conventional DSL technologies. Combined with its intelligent spectrum management, EtherLoop virtually eliminates binder interference engineering considerations, making it a truly plug-and-play technology. In addition to this IP-based approach, EtherLoop offers the advantages of DSL technology such as point-to-point security, a non-shared medium, and the ability to operate over normal telephone lines. This combination of functions makes EtherLoop highly adaptable and inexpensive to implement in almost any copper phone-wiring scenario.

EtherLoop is the core technology powering Elastic Networks' Storm System of Intelligent IP high-speed access solutions.

About Elastic Networks Inc.

Elastic Networks is a market leader in intelligent, first-mile Ethernet access technologies and products that enable service providers to rapidly deploy high-speed, multi-media applications. By leveraging its technological differentiation in speed, deployability, and economics, and by building strategic relationships with distributor, chip manufacturing, and data networking partners, Elastic Networks continues to increase the pervasiveness of its technology in markets throughout the world. The company has offices in Alpharetta, GA, Toronto, and Hong Kong.

For more information about Elastic Networks and its high-speed access and subscriber management solutions, visit www.elastic.com, www.speedupamerica.com, or contact Elastic's U.S. headquarters in Alpharetta, Georgia, directly at [phone]. For investor information, e-mail Elastic at [e-mail], or call [phone].

Forward looking statements

Certain of the statements contained in this release are forward-looking statements (rather than historical facts) that are subject to risks and uncertainties that could cause actual results to differ materially from those described. With respect to such forward-looking statements, the Company seeks the protections afforded by the Private Securities Litigation Reform Act of 1995. These risks include, without limitation, (1) that the Company may fail to be competitive with existing and new competitors, (2) that the Company may not maintain or grow its level of revenues, given its currently limited customer base, (3) that the Company's limited number of product offerings may fail to achieve widespread market acceptance, (4) that negative changes in customer demands and requirements regarding our prices, technology and products may occur, (5) that DSL technology may fail to achieve widespread market penetration, (6) that interruptions or disruptions in our product shipments and/or our various arrangements with our distributors, manufacturers or resellers may negatively impact our ability to make sales and/or minimize our costs, (7) that the Company may not adequately respond to technological and regulatory developments impacting the telecommunications industry, (8) that needed financing may not be available to the Company if and as needed, (9) that a decline in the size and potential growth of the MTU, carrier and international markets for our technology may occur, (10) that a significant reversal in the trend toward increased usage of the Internet may occur, (11) that a drastic, negative change in the U.S. economy or market conditions may occur, and (12) that some other unforeseen difficulties may occur from time to time. This list is intended to identify certain of the principal factors that could cause actual results to differ materially from those described in the forward-looking statements included elsewhere herein. These factors are not intended to represent a complete list of all risks and uncertainties inherent in the Company's business, and should be read in conjunction with the more detailed cautionary statements included elsewhere in the Company's most recent filings with the SEC.