Elastic Networks Rolls Out EtherLoop Next-Generation DSL With Hong Kong Carrier New T&T.

Business Editors

ALPHARETTA, Ga.--(BUSINESS WIRE)--March 14, 2000

Elastic Networks Asia-Pacific Office Established on

Momentum of New T&T Award

Elastic Networks, Inc., the leading provider of next-generation DSL technology and high-speed internet access solutions for service providers, today announced the rollout of its next generation EtherLoop DSL solution to Hong Kong carrier New T&T.

Elastic Networks, through its business partner Nortel Networks, will provide New T&T, Hong Kong's second largest fixed network telecom operator, with EtherLoop next generation DSL technology enabling New T&T to offer its customers a dedicated 4 Mbps high-speed access service, while supporting voice, on a single phone line.

The EtherLoop rollout is a key element to New T&T's broadband access platform based on an IP/ATM infrastructure provided by Nortel Networks. Initially targeting Internet Service Providers, New T&T's broadband service will be the first in Hong Kong to deliver an "always on" capability of 4 Mb/s both upstream and downstream. New T&T has signed HKNet as the first customer for the service.

"The total broadband access platform will allow us to develop new business-class networking services. It is an integral component of our 'Building e-Connections' strategy as we now have the capability to furnish ISPs with the fastest up and downstream connections in Hong Kong," said Mr. Stephen Ng, Chairman and Managing Director of New T&T. "This means that businesses can now have near perfect voice, data, audio and videoconferencing capabilities--something which they have never had before in Hong Kong."

Many of Hong Kong's prime buildings have already been converted into 'e-Buildings' by New T&T with advanced facilities and features. New T&T is strongly positioned to connect e-Buildings to its broadband network to deliver the fastest data transfer and communications available in Hong Kong.

Already, New T&T is hubbing 15% of the total Hong Kong Internet traffic and has a 50% share of the non-captive market. It is predicted that with the introduction of a far superior broadband connection, ISPs will be able to increase their business opportunities, increase their competitive edge and become part of a brand new broadband expressway.

With this award, Elastic Networks has also announced the establishment of an Asia-Pacific Headquarters, located in Hong Kong.

"We are very pleased to play a critical role in enabling New T&T to offer new and differentiated broadband services through existing copper wiring infrastructure in support of its Hong Kong e-Building initiative," said Guy Gill, CEO, Elastic Networks. "Our rapid expansion in the Asia-Pacific region with our business partner, Nortel Networks, has offered Elastic Networks the opportunity to invest sales and technical customer support resources in-country. The early successes of Elastic Networks' high-speed internet access solutions are a clear indication of our greater potential in these markets."

Elastic Networks' product portfolio addresses the high-speed Internet access needs of service providers targeting the consumer, business and enterprise markets, including vertical industries such as hospitality and multi-tenant housing. Elastic's core suite of high-speed copper access solutions is based on EtherLoop next-generation DSL technology, which currently provides up to 4 mb/s access in both directions over regular copper phone lines up to 21,000 feet. Later this year, Elastic Networks will be able to offer 6 mb/s and with further evolution to 10 mb/s and beyond.

Elastic Networks' portfolio also includes the YesWare Software Suite which provides integrated service management including plug and play connectivity without end-user laptop reconfigurations, as well as billing, service branding and system management for both EtherLoop and Ethernet networks.

About New T&T

New T&T is a member of The Wharf Group of companies, which is one of the largest groups of companies in Hong Kong. The Group also owns i-CABLE Communications Limited, which offers the No.1 Television Station in Hong Kong for News, Movies and Sports through Cable TV, and is also an Internet access service provider.

New T&T, licensed in 1995, was one of the first companies to introduce competition into Hong Kong's fixed line telecommunication market. Since its launch, the company has sought to bring improved service, lower prices and a better product range to Hong Kong business and people.

For further information on both New T&T and the Wharf Group, please refer to the New T&T website: www.newtt.com

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., based in Alpharetta, GA, is a private company funded by Nortel Networks; Texas Instruments; Pequot Capital; MF Private Capital; Williams, Jones & Associates; ComVentures and Wolfson Equities. For more information about Elastic Networks and its high-speed access and subscriber management solutions, visit www.elastic.com or contact [phone].