FEATURE/Telecom Company NISCO Systems Offers to U.S. Security Agencies Free Use of System to Track Terrorists on the Internet.

Business Editors

ATLANTA--(BUSINESS WIRE FEATURES)--Oct. 4, 2001

NISCO Systems, Inc., a network telecommunications management company based near Atlanta, GA, is offering to license to U.S. government security agencies gratis a new technology that will help agencies track and identify terrorists who use the Internet in conjunction with terrorist activities.

The technology, known as Network Active Intelligence Control System(TM) (NAICS(TM)) is a relatively simple but powerful system that allows all the flexibility inherent in the packet IP world with all the benefits of circuit emulation. NAICS can track all data traveling through Internet channels worldwide and create a detailed record of the timing, origination and destination of each communication. NAICS thus eliminates the Internet's traditional anonymity for individuals involved in terrorism, denying them the use of the Internet as a secure means of communication.

"We believe NAICS will be a powerful tool in the war against global terrorism," says Kimberly Peacock, NISCO's Chief Technology Officer and inventor of the patented technology on which the system is based. "We feel it is our duty to the United States to give it to U.S. law enforcement and security agencies which might benefit from its unique investigative capabilities."

NAICS testing is expected to begin by the middle of next year. The system will be available for government use by the end of 2002 "at the latest", say NISCO officials.

Several U.S. government agencies have expressed interest in NAICS; discussions have been confidential.

Originally designed to globally manage Internet traffic with the simplicity and flexibility of voice networks, the NAICS(TM) intelligence application was created in response to the war on terrorism declared by President George W. Bush in the wake of the September 11th attacks on New York and Washington.

NISCO manages telecommunications networks of several major corporations, including IBM, NCR and Federal Express. The company is based in Lawrenceville, GA.

Contacts for Press and Analysts:

For further information on NAICS:         For further information on
                                              NISCO Systems, Inc.

Kimberly R. Peacock                         Timothy Kipper
Chief Technology Officer                    Investor Relations
718-261-4424      office                    713-227-0080
917-658-9704 cell                           [e-mail]
[e-mail]                            www.niscosystems.com

- Background Information -

AMERICA'S NEW WAR: Tracking Down Terrorism

NAICS(TM) aids in thwarting terrorism

In light of the recent, tragic attacks on our Nation's Capitol and The World Trade Center, it becomes painfully evident as to how the terrorists were successful in their plan and execution of the worst terrorist incident in history. The terrorists were able to communicate freely and anonymously across the Internet without ever being tracked or their conversations recorded. While operating in complete anonymity, the terrorists were able to discuss, plot and execute their plans of mass destruction, without interruption. This procedure cannot continue in its current state and now there is a viable and prompt solution.

The technology was developed from two core technologies. Active node transport developed by the Software and Systems group at MIT and Ant Colony Optimization also known as ACO developed by a mathematician in Belgium named Marco Dorigo.

On Active node transport technology NAICS(TM) only uses the idea of using the option header to carry a state (a bit of information) to create a feedback loop over the general Internet. Any other use of Active transport system is useless, as it would require a forklift upgrade to all the routers and protocols used on the Internet today. The advantage of NAICS is that it will ride on top of the network with no modification just like SS7 in voice networks rides on top of that network.

ACO (Ant Colony Optimization) is another component of NAICS and is the best way to solve traveling salesman-like problems which virtually all communications traffic faces. The traveling salesman problem consists of having a variety of routes to consider and striving to choose the best path based on factors such as distance, latency, bandwidth, etc... Through the science of swarm theory (a theory in which insects tends to show a collective intelligence, it was discovered that they, over a period of time, always find the optimum path to food). In the same way we can emulate this through genetic algorithms by weighting several options and then evaporating or decreasing a value of state over a period of time so that route tables are constantly updated all the time. Although this technique can never yield 100% optimum path it always yields a 99.9% optimum path. An absolute is impossible, as factoring becomes impossible after just a few hundred possible routes.

Thereby NAICS utilizes a feedback loop to which every packet traveling across the network carries information about the state of the network that is acted on by a database, which utilizes ACO to adjust its tables. So NAICS optimizes Network routing on a global basis in contrast to a point-to-point optimization that is in use today.

The bottom line is that NAICS can allow a 300% performance increase in bandwidth utilization while at the same time making the network more resilient and capable of converged services with the features of circuit switched networks and the dynamic provisioning of IP.

With application to criminal organizations looking to exploit the Internet to keep organization communications and structures anonymous, NAICS thwarts this by creating a database that tracks every packet and creates a call detail record. This information could prove invaluable to all Governmental and Law Enforcement agencies as well as millions of civilians, as it provides a trail to the source of these terrorist communications. Data retrieved from the database could be subpoenaed and used as evidence to assist in bringing an end to the terrorist acts and to bring the perpetrators of such acts to swift justice.

Deployment Motivations for Network Active Intelligence Control System(TM)

Industry Motivations

-- Differentiation through provision of video/ multimedia services

-- Differentiation through provision of value-added services in IF environment

-- Ensure QoS necessary for effective transmission of services

-- Ensure service management architecture that facilitates delivery of services

Security Motivations

-- Call Detail Record of every packet that travels across the

network

-- An active defense that senses denial of services attacks and

shuts them down at the Point of origin

-- Makes it impossible to forge origination of packets

Limitations of Current Technology Platforms

-- Inverse relationship between QoS guaranteed transmissions and

universal IP

-- IP-based networks fail to ensure QoS, ATM networks lack

dynamic applicability

-- IP over ATM networks suffer from lack of integration

-- RFC 1483 platform difficult to configure, scale and deploy

services

-- MPLS + ATM platform does not improve deployment of services

Goal: Emulation of circuit switching to provide broad-range of value-added services

Advantages of Network Active Intelligence Control System (NAICS(TM))

-- Provides interactive intelligence among endpoints, servers and

the network

-- Provides understanding of complete network status

-- Enables dynamic setting of network parameters

-- Enables sophisticated provision and management over services

Network Architecture (IP/ATM)

-- IP-based, ATM-transmitted, Active Intelligence System

Controlled network

-- Endpoints based on IP, while network is completely ATM

switched

-- NAICS mediates requests of endpoints with availability of

network

-- Dynamically reconfigures network to provide ATM transmission

to IP services

-- Provides ATM like functionality on IPV6 networks.

Advantages of Network Architecture

-- Resolves shortcomings of current technology platforms

-- Seamlessly integrates the IP and ATM worlds

-- Provides the QoS of ATM and the universality of IP

-- Eliminates IP routing states including IGPs, EGPs, and IP

multicasting

-- With NAICS(TM)and an IP-base, allows transition to future

technologies (e.g., POS)

NISCO's Network Active Intelligent Control System was invented by NISCO's Chief Technology Officer, Kimberly Peacock. NAICS is fully compatible with all existing systems. The NAICS software enables networks to optimize bandwidth utilization, but in the absence of the software NAICS runs transparently in existing networks. NISCO expects to commence software development before the end of the year, have a first version ready for Beta testing by July 1, 2002, and deploy the first version in late 2002.

NISCO Systems, Inc. provides broadband, network management solutions to the commercial environment. The Company specializes in the design, engineering and installation of next-generation, voice, data and video communication infrastructures. It maintains its National Network Operations Center (NOC) outside Atlanta, Georgia, where the mission is "to keep our customers competitive and on the cutting edge of technology through the support of high-speed telecommunications and broadband infrastructures."

Certain information included in this press release is forward-looking and is subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Factors which could cause results or events to differ from current expectations include, among other things: the severity and duration of the industry adjustment; the sufficiency of our restructuring activities, including the potential for higher actual costs to be incurred in connection with restructuring actions compared to the estimated costs of such actions; fluctuations in operating results and general industry, economic and market conditions and growth rates; the ability to recruit and retain qualified employees including at the most senior management levels; fluctuations in cash flow, the level of outstanding debt and debt ratings; the ability to make acquisitions and/or integrate the operations and technologies of acquired businesses in an effective manner; the impact of rapid technological and market change; the impact of price and product competition; international growth and global economic conditions, particularly in emerging markets and including interest rate and currency exchange rate fluctuations; the impact of rationalization in the telecommunications industry; the dependence on new product development; the uncertainties of the Internet; the impact of the credit risks of our customers and the impact of increased provision of customer financing and commitments; and stock market volatility. NISCO Systems disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.