Home Telephone Selects Newbridge Networks to Implement LMDS Network.

HERNDON, Va.--(BUSINESS WIRE)--Feb. 22, 1999--

- Industry-leading Local Multipoint Distribution System (LMDS)

Enables Home Telephone to Penetrate Emerging Markets -

Broadband wireless industry leader Newbridge Networks (NYSE:NN) (TSE:NNC) today announced that it has been selected as the strategic networking vendor for the implementation of a spell out (LMDS) network for Home Telephone, Inc., a full-service telecommunications service provider and LMDS spectrum holder. Full- scale deployment and commencement of commercial services are expected to commence in mid-1999 in the Charleston, South Carolina basic trading area (BTA), or coverage area, following network and cell planning.

Home Telephone was a successful bidder in the March, 1998 Federal Communications Commission (FCC) LMDS spectrum auctions and is among the first operators in the United States to announce a strategic vendor relationship for network deployment. The network will enable Home Telephone to deliver traditional and advanced telecommunications services throughout its service area and to penetrate large-scale emerging markets. LMDS is a high frequency, broadband wireless system operating in the 28 GHz band and capable of delivering/transporting (only the service provider is licensed) data, Internet, voice, video and multimedia services.

"Newbridge understands the economics and the technology of LMDS and has addressed our requirements in both areas," said William Helmly, Vice President, Engineering and Planning, Home Telephone. "The Newbridge multiservices platform gives us a competitive edge in the delivery of new services to current customers and while allowing us to diversify and expand our customer base. The Company's business case support has also helped us identify key market opportunities."

This selection further establishes Newbridge as the leading provider of broadband wireless technology solutions following announcements with put company name first Canadian nationwide 28 GHz spectrum holder, MaxLink Communications Inc., and company name first U.S. LMDS license holder, Central Texas Communications. Newbridge has also supplied LMDS networks to Korea Telecom, the world's eighth-largest telecommunications company, and the Ottawa-Carleton Research Institute (OCRI).

"Newbridge is working closely with Home Telephone to ensure their success," said Rick Miskiman, Vice President, Strategic Sales Development, Newbridge Networks. "Our experience has shown that each LMDS operator is dealing with unique opportunities and challenges, so Newbridge works in a consultative process with each customer to ensure a fit from both a technology and business perspectives."

The comprehensive Newbridge(r) broadband wireless solution is a multiservice network comprising base station and customer premises equipment. A base station, consisting of the Siemens / Newbridge MainStreetXpress(tm) 36170 Multiservices Switch and point-to-multipoint transmitters and receivers, is the central location that collects all traffic to and from customers within a given wireless coverage area. It is also the linking point between the customer and the backbone network. Customer premises equipment includes transceivers and network interface units (NIUs), which support a full range of services. The industry-leading MainStreetXpress 46020 Network Manager will manage both the wireless and wireline portions of the Home Telephone network and also provides billing, statistics and maintenance support. The Newbridge LMDS solution was recently recognized with two industry awards, the Data Communications Hot Product Award and the International Engineering Consortium (IEC) InfoVision Award, for its broadband wireless solution.

Home Telephone Company is a privately held local exchange carrier that has provided communications services in South Carolina for nearly 100 years. Home Telephone is a full service telecommunication provider offering local telephone, long distance, private line, broadband fast packet, Internet, video, wireless and paging services to businesses, government and consumers.

Newbridge Networks designs, manufactures, markets and services networking solutions to organizations in more than 100 countries. The Company leverages its relationship with a growing family of Newbridge Affiliate companies and strategic alliances with Siemens and 3Com Corporation to deliver seamless, end-to-end solutions. Newbridge customers include the world's 300 largest telecommunications service providers and more than 10,000 corporations, government organizations and other institutions. Founded in 1986, the Company employs more than 6,000 people on six continents. News and information are available at www.newbridge.com.

Newbridge and logo are registered trademarks of Newbridge Networks Corporation.

MainStreetXpress is a trademark used by the Siemens and Newbridge alliance for comprehensive solutions in broadband communication. No agency relationship, partnership, or joint ownership of a legal entity is to be inferred or implied by the use of the term alliance.