Elastic Networks Successfully Completes Interoperability Testing With TollBridge Technologies' TB200 Voice Gateway.

Business Editors & Technology Writers

SUPERnet 2001

SAN JOSE, Calif.--(BUSINESS WIRE)--Jan. 15, 2001

Elastic Joins TollBridge Technologies' Voice of Broadband Alliance

Elastic Networks Inc. (NASDAQ: ELAS) announced today that they have successfully completed interoperability testing with the TollBridge Technologies TB200 voice gateway and have joined the TollBridge Voice of Broadband Alliance.

TollBridge is a leading provider of carrier class voice-over-broadband solutions for broadband carriers. Elastic Networks and TollBridge will demonstrate their solutions at the Supernet Show in TollBridges' booth, no. 423.

The combination of Elastic Networks' next-generation IP DSL technology, EtherLoop(TM), and the TollBridge TB200 Voice Gateway, enables service providers and carriers to aggregate both IP-based voice and data onto a single copper loop. The solution offers greater reach and speeds than conventional DSL technologies and provides up to 24 voice lines over a single copper loop.

The mission of the Voice of Broadband Alliance is to ensure that service providers can meet the wide variety of end-user requirements, and can do so with a choice of products to build a best-of-breed network that is both reliable and flexible.

Included in the interoperability testing was Elastic Networks Storm System family of IP DSL solutions. Comprised of the BitStorm IP DSL Access Multiplexer, Layer 3 IP Switch, Subscriber Management Gateway/Controller and the BitStorm Server, the Storm System transforms regular telephone twisted pair wiring into a high-speed, IP-based Local Area Network, capable of supporting lifeline voice services as well as voice over IP, secure network-based VPNs, multicast streaming audio and video, interactive gaming, enhanced chat rooms, web caching, and localized web hosting for business, consumer and entertainment services. The system delivers bi-directional bandwidth up to 6 Mbps over regular copper phone lines and offers spectral compatibility in the telecom cable plant, eliminating the loop engineering, binder management practices, and truck rolls required to deploy conventional DSL technologies.

The TollBridge TB200, a carrier-grade IP-PSTN Gateway allows carriers to deliver toll-quality voice services from a Class 5 switch over a high-speed data infrastructure. The TB200 is fully compatible with existing phones, modems, faxes, key systems and PBXs. Dialtone, billing and all the value-added custom calling features available from the Class 5 switch are transparently delivered by the TollBridge platform. The TB200 allows carriers to leverage Class 5 switches today and migrate to an end-to-end IP network in the future.

"The TollBridge voice solution is of tremendous value for our customers," said Guy Gill, president and CEO of Elastic Networks. "TollBridge has both the deployment experience and the technological vision to allow service providers the ability to migrate traditional voice traffic into IP voice traffic, while offering the same toll-quality voice services that end users require."

"We're very excited about being able to provide our IP-based voice services across the EtherLoop based DSL solution," said Agnes Imregh, vice president for marketing at TollBridge Technologies. "EtherLoop's ability to address both the long loop lengths and the inconsistent quality of the copper infrastructure are key to deploying this technology successfully for many of our service provider customers."

About TollBridge Technologies

Founded in March 1998 and located in Santa Clara, Calif., TollBridge Technologies - selected as one of UPSIDE's Top 100 Private Companies (May 2000) - is the leading provider of high-quality voice-over-broadband solutions to the new generation of carriers. TollBridge's solutions change the economics of delivering voice services to small-business customers by allowing carriers that own Class 5 switches to use broadband access technologies, such as DSL, cable, T1, wireless and fiber to use alternative technologies in the local loop and deliver toll-quality voice and integrated data services.

About Elastic Networks

Elastic Networks (NASDAQ: ELAS) is a 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. The company has offices in Alpharetta, GA, 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.