Expand Networks Announces Strategic Partnership With Nippon Telegraph and Telephone Subsidiary NTT-ME.

Business/Technology Editors

ROSELAND, N.J.--(BUSINESS WIRE)--June 5, 2001

-- Leading Japanese System Integrator to Provide Expand's

Enterprise Caching Technology to Extensive Japanese Customer Base --

Expand Networks, a leader in optimizing network performance, today announced that it has reached yet another milestone in achieving global distribution by signing an agreement with telecommunications giant Nippon Telegraph and Telephone (NTT) subsidiary NTT-ME, one of Japan's leading systems integrators. Under the terms of the agreement, NTT-ME will distribute Expand Networks' suite of products that enable enterprise wide network performance boosts of up to 400 percent to its extensive Japanese customer base.

"Expand Networks' proven solution allows us to offer a reliable, cost-effective performance booster in a market where network performance is critical," said Shuji Arima, senior vice president, marketing, NTT-ME. "With many new productivity applications creating strain on existing networks, this partnership will enable us to provide our customers with a timely yet long-term solution that accelerates new application deployment, enhances the end-user experience, improves network management and quadruples network performance at a fraction of the cost of adding new infrastructure."

As enterprises increasingly rely on high-bandwidth applications like ERP, CRM, Thin Client and Voice Over IP for the success of their operations, they are searching for reliable, cost-effective, easy to deploy solutions for maintaining optimal network performance. The Expand Networks solution instantaneously increases network speed, capacity and throughput by an average of 100 to 400 percent or more, providing a vital business solution for enterprises facing constrained networks or limited access to costly additional bandwidth.

"Our partnership with NTT-ME is a significant step forward in strengthening Expand Networks' extensive global distribution and will enable us to increase our offering to major players within the telecommunications sector," said Talmon Marco, co-founder and president, Expand Networks. "We are delighted to partner with such an integral member of the Nippon Telegraph and Telephone group of companies. NTT-ME is well known for continually providing innovative telecommunications products and services to the Japanese market."

Expand Networks' Enterprise Caching solution has been deployed by FORTUNE 1000 corporations and major government agencies. Enterprise Caching takes the principles of caching and extends them to the entire enterprise. An example would be an enterprise running a Citrix application in a distributed environment. Expand Networks' Enterprise Caching Technology will cache the content that is sent from the Citrix server to the user. So, if multiple users continuously run Microsoft(R) Word, Expand's technology will move the repeated content to the edge of the network. The end result is performance boosts of up to 400 percent for the Citrix application.

About Expand Networks

Expand Networks develops patented Enterprise Caching Technology that dramatically improves enterprise-wide network performance. Expand Networks' suite of products brings caching to the entire enterprise resulting in network speed, throughput and capacity increases averaging 100 to 400 percent, and often more. This performance boost supports the deployment of bandwidth-intensive applications such as ERP, CRM, Thin Client and Web Applications (visit www.tolly.com for unbiased third party testing by the Tolly Group). Expand Networks' easy-to-install, scalable solution enables enterprises to optimize the performance of existing network infrastructure and avoid costly upgrades. Leading organizations around the world including Motorola, Texas Instruments and the United States Department of Defense are using the Expand Networks solution. Expand Networks is headquartered in Roseland, New Jersey and Tel Aviv, Israel with offices throughout the United States and in the United Kingdom, France and Italy and with a global network of Value Added Resellers. To learn more, visit www.expand.com or call [phone].

Expand Networks, ACCELERATOR 4000, ACCELERATOR 2700 and ACCELERATOR 2750 are trademarks of Expand Networks, Inc. All other trademarks are the property of their respective owners.

About NTT-ME Corporation

NTT-ME Corporation, headquartered in Chiyoda-Ku, Tokyo, established in April 1999, is an 18,000-employee company providing multimedia solutions, communication facilities and user carrier support business in Japan. NTT-ME Marketing Headquarter IX is importing state of the art products and support for global businesses, providing and improving multimedia and intelligent access capability. For more information on NTT-ME Corporation, visit NTT-ME at http://www.ntt-me.co.jp.