Elastic Networks Announces $10 Million Agreement with Everest Broadband Networks; Elastic Networks Continues Growth in the Multi-Dwelling Unit Markets with Everest Broadband.

Business Editors and High-Tech Editors

ALPHARETTA, Ga.--(BUSINESS WIRE)--March 2, 2000

Elastic Networks Inc., a leading provider of next-generation DSL technology and high-speed Internet access solutions, today announced that Everest Broadband Networks, a leading broadband service provider focused on the multi-tenant unit and hospitality marketplace, has signed a $10 million dollar agreement for Elastic Networks' products.

Under the terms of the agreement, Elastic Networks will supply its next-generation DSL hardware and innovative connectivity software solutions to enable Everest Broadband to provide carrier-grade broadband access and Internet applications to commercial, lodging and residential facilities. Everest Broadband recently completed its first installation with Elastic Networks at a commercial building located in the historic St. George area of Staten Island.

"Elastic Networks' solutions are a perfect fit for Everest Broadband's strategy to provide high-speed access and application services that will benefit property managers, tenants, hotel guests and apartment residents," said Jeffrey Feldman, CEO, Everest Broadband Networks. "Elastic's next-generation DSL provides broadband bi-directional speeds up to 6mbps, enabling Everest Broadband to provide new value-added services and applications to our office, residential and lodging property customers across the country."

Elastic Networks product portfolio addresses the needs of carriers, enterprise and vertical markets such as hospitality and multi-tenant housing. Elastic's core suite of high-speed copper access solutions are based on EtherLoop next-generation DSL technology, which provides multi-megabit access over regular copper phone lines up to 21,000 feet. Elastic Networks portfolio also includes the YesWare software suite, which provides integrated services management including plug and play connectivity without end user laptop reconfiguration, as well as billing, service branding and system management for both EtherLoop and Ethernet networks.

"We are pleased to partner with Everest Broadband and provide infrastructure and software solutions that enable new interactive Internet services to their customers," said Guy Gill, CEO, Elastic Networks. "Our focus with Everest Broadband and all of our customers is to provide velocity of deployment and bandwidth for differentiated services beyond web surfing and email."

About Everest Broadband Networks

Everest Broadband Networks provides a range of advanced telecommunications services -- high-speed Internet, video and telephony to occupants of multi-tenant buildings (office and residential) and hotel properties. By providing both the fiber and local transport and the applications and services that enrich the broadband experience, Everest Broadband is securing a leadership position in the multi-tenant unit and hospitality marketplace.

Everest Broadband Networks is headquartered at One Executive Drive, Suite 170, Fort Lee, New Jersey 07024. For more information, visit www.everestbroadband.com or write [e-mail].

About Elastic Networks Inc.

Elastic Networks is the leader in innovative, next-generation DSL technology and high-speed Internet access solutions, enabling telecommunications service providers to easily offer affordable broadband services that simplify the way people connect. 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 innovative technology in markets throughout the world.

Elastic Networks Inc. is based in Alpharetta, Ga. For more information about Elastic Networks and its high-speed access product suite, visit www.elastic.com or contact 678/297-3100.