Envoy Networks Successfully Completes Testing of 100 Percent Uplink Capacity Improvement for IS-95 CDMA Cellular Networks; Envoy Among the First to Show Such Capacity Improvement.

Business/Technology Editors

BURLINGTON, Mass.--(BUSINESS WIRE)--Oct. 30, 2001

Using proprietary signal processing techniques to control capacity-limiting interference associated with CDMA-based cellular systems, Envoy Networks, Inc., a leading wireless infrastructure startup company, successfully completed testing that proves that its technology can be used to realize a 100 percent capacity improvement on the uplink. This successful test shows that the expected quality of a voice call placed from the mobile handset through the Envoy base station is maintained as the interference level representing multi-user operation is increased. Envoy showed that twice the number of users could be supported when its advanced receiver technology is applied.

The capacity of a 2G IS-95 CDMA network is determined by the number of voice users the network operator can support in a cell site on a per carrier, per sector basis. Since in a CDMA network, every user transmits in the entire frequency spectrum allocated to each channel, its transmission appears as noise interference to all other users sharing the same spectrum. As the number of users assigned to the channel increases, the base station receiver reaches a point where it ceases to be able to detect and process signals from a given user. Envoy Networks' technology, applied to the base station CDMA receiver, significantly enhances the receiver tolerance to the multiple access interference.

"Wireless network operators are currently besieged by two primary obstacles: first, making more efficient use of available spectrum, and second, ensuring that current investments in infrastructure will increase network capacity and enable the introduction of enhances services. Envoy Networks is addressing these issues," comments Adam Needles, principal and director of research for DVG Research.

Envoy Networks' CDMA uplink capacity enhancement test used a standard IS-95 CDMA handset and an IS-95 compliant base station developed by Envoy Networks. Envoy Networks' interference control technology is not limited only to IS-95 CDMA cellular networks. According to Dr. Tan Rao, Director of Advanced Radio Technology at Envoy, "Envoy's technology is equally applicable to any CDMA access scheme such as the CDMA2000 and WCDMA standardized 3G access schemes. Envoy Networks is currently engaged in an effort to demonstrate similar capacity enhancement for WCDMA UMTS using a UMTS base station developed by Envoy".

Tom Lambalot, Envoy Networks President & CEO said "Envoy Networks is focused on developing technology and products that provide CDMA cellular service providers and major OEMs with solutions to address the challenges presented by the tremendous growth in subscriber base." He continued, "Although this demonstration addressed capacity improvement in the uplink, Envoy Networks is engaged in the development of complementary technology to enhance capacity on the downlink."

Envoy Networks envisions that such technology will be packaged in chipset form and sold to cellular infrastructure manufacturers to enhance their product offerings.

About Envoy Networks, Inc.

Envoy Networks is developing the underlying technology and products for 2G, 2.5G and 3G radio access networks. Our products help wireless service providers increase the capacity of voice services today and introduce new data services tomorrow. Founded in 2000, Envoy Networks is privately held and led by an executive team with extensive experience in mobile wireless radio and IP data network technologies. The company has its headquarters in Burlington MA and is funded by leading investors such as Bessemer Venture Partners, Commonwealth Capital Ventures, and Highland Capital Partners. For more information, please contact Envoy Networks at www.envoynetworks.com.

About DVG Research

DVG Research delivers dynamic, on-the-ground business intelligence services to senior-level decision-makers competing in emerging technology markets. DVG Research is founded on the concept and goal of substantially altering the "past-tense" research paradigm that currently pervades the market research world. The firm achieves this through a future-oriented and dynamic framework for market intelligence that provides the type of business insights and actionable analysis that is a prerequisite for successful operation in today's volatile and changing technology environments. DVG Research further enables this unique approach through its proprietary software technology platform and service called IntelligenceNET. Through the utilization of advanced technology and new methods of operation, DVG Research is able to create a network based model that serves as the foundation for superior custom counsel, analysis and research services. These services culminate in the empowerment of senior-level decision makers to assume a proactive position in their businesses' development. For more information on DVG Research, visit the group's Web site: www.dvgresearch.com