Excel Switching Corporation Enters Into a Strategic Alliance With Systems Integrator Arm of Japan's Leading Telecommunications Company.

HYANNIS, Mass.--(BUSINESS WIRE)--Jan. 12, 1999--

Excel and KDD Network Systems to Jointly Market and

Resell Telecom Solutions

Excel Switching Corporation (Nasdaq: XLSW), a leading provider of open switching platforms for telecommunications networks worldwide, announced today that it has entered into a Memorandum of Understanding (MOU) with KDD Network Systems (KDD-NS), a telecommunications systems integrator and wholly-owned subsidiary of KDD, Japan's leading telecommunications carrier. Under the agreement, KDD-NS intends to market and resell solutions based on Excel's ONE Architecture(tm) Expandable Switching System (EXS). In addition, KDD-NS intends to implement the EXS solution to provide tandem switching and enhanced services for telecommunications service providers, including it's parent company KDD. KDD-NS plans to work closely with Excel's international subsidiary, Excel Switching Corporation Japan, which was formed in May 1998.

"We are pleased to partner with the systems integrator arm of Japan's leading telecommunications carrier," said Robert Madonna, president and CEO of Excel. "KDD-NS' market expertise will strengthen our ability to offer Japanese service providers the flexibility of the Excel open switching platform. With the continued growth in telecom marketplace, this partnership allows us to continue to build on our customer base in Japan and throughout Asia."

The programmable, scaleable EXS platform provides a number of benefits to carriers. In addition to supporting worldwide network signaling requirements, its open system enables companies to bring new, differentiated services to market faster. A scaleable system enables carriers to start small and grow as their subscriber base increases, providing a cost-effective solution.

"As KDD-NS seeks to strengthen its systems integration services especially in value added intelligent network and computer telephony integration (CTI), Excel's flexible scaleable switching platform will enable us to achieve faster time to market and lower costs for KDD-NS' customers," said Keizo Ohno, President of KDD Network Systems.

About ONE Architecture

ONE Architecture defines Excel's strategic technology framework for its state-of-the-art Expandable Switching System (EXS). It enables carriers and developers to integrate network routing, enhanced services and media support on a single, highly-scalable switching platform. With its product and services, Excel provides a scalable network solution regardless of legacy signaling protocols, switching capacity, or billing and subscriber services offered from the PSTN (Public Switch Telephone Network) switch.

About KDD Network Systems

KDD Network Systems is a wholly-owned subsidiary of KDD, Japan's leading telecommunications carrier. KDD-NS was established by KDD to provide strategic telecommunications solutions to customers making use of the advanced telecommunications expertise built up by KDD over the past 40 years. KDD-NS designs and constructs telecommunications systems and networks from corporate telecommunications networks to satellite communications systems for a wide variety of customers.

About Excel Switching Corporation

Excel Switching Corporation is a leading provider of open switching platforms for telecommunications networks worldwide. Excel develops, manufactures, markets and supports a family of open, programmable, carrier-class switches that address the complex enhanced services and wireless and wireline infrastructure needs of network providers. Excel's products are currently deployed in telecommunications networks in approximately 60 countries throughout the world. Visit Excel's website at http://www.xl.com.

This release may contain statements which are "forward looking," and is subject to risks and uncertainties that could cause actual results to differ significantly from expectations. Factors that might cause such a difference include, but are not limited to, those relating to Excel's dependence on and concentration of relationships with application developers, original equipment manufacturers and systems integrators; possible delayed or lengthy sales cycles; risks associated with new product introductions; Excel's dependence on its proprietary rights; and other risks identified in the Company's Securities and Exchange Commission filings including those risks identified in the section entitled "Risk Factors" of the Company's Annual Report for the year ended December 27, 1997 on Form 10-K, as amended. Product and service names used within are trademarks, registered trademarks and service marks of their respective owners.