Elastic Networks and Dynavar Networking Announce Distribution Agreement.

Business Editors

ALPHARETTA, Ga.--(BUSINESS WIRE)--Dec. 13, 2000

Canada's Largest Value Added Reseller of Integrated Network 

Solutions Adds Elastic Networks Product Line

Elastic Networks Inc. announced today that it has signed a distribution agreement with Dynavar Networking Inc., Canada's largest value added reseller of integrated network solutions.

Under the agreement, Dynavar will stock and distribute Elastic Networks next-generation DSL solutions throughout Canada.

"Dynavar's focus on the ISP and carrier market makes them an ideal partner for us," said Tom Gallo, vice president of worldwide sales for Elastic Networks. "We will support their sales and marketing efforts from our new Toronto office and together expand our presence in the Canadian market place."

Greg Miller, executive vice president and chief operating officer of Dynavar, stated, "Elastic Networks has a unique offering which has received great acceptance from service providers. This addition to our product line allows for simple, cost effective end-to-end solutions for our customer base."

Dynavar will distribute Elastic Networks Storm System, a family of DSL solutions that enable carriers and other service providers to offer high performance data and voice services utilizing next-generation IP DSL technology known as EtherLoop(TM). The system delivers bi-directional bandwidth up to 6 Mbps over regular telephone wires. EtherLoop's spectral compatibility in the telecom cable plant all but eliminates the need for loop engineering, binder management practices, and truck rolls - making it a low cost, highly reliable alternative to conventional DSL technologies.

Dynavar's success as a leading value added reseller resides on the foundation of a best of breed product line and advanced manufacturer training for their employees. With the inclusion of the Elastic Networks product line to Dynavar's full range of products for service providers and selected enterprise customers, Dynavar will offer a more comprehensive total solution to its customers.

Dynavar Networking Inc., a leading VAR in North America, is a dynamic international company that specializes in provisioning integrated networking solutions. With offices across North America, Dynavar is uniquely positioned to help meet the challenges of building a new generation of network architectures that integrate video, voice and data on a single infrastructure. Visit us at www.dynavar.com or call toll free at [phone].

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 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 (678)-297-3100. 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.