Home Wireless Networks, Inc. Makes Announcement.

ATLANTA--(BUSINESS WIRE)--Dec. 16, 1998--Home Wireless Networks, Inc. today announced the closure of its second round of equity financing in the amount of $20M. Home Wireless Networks is a start-up company nearing the completion of the development phase of its new line of hardware and software products, which together make integrated voice and data networking possible for small businesses and residences.

The new funds will be used to complete the development of the company's products as well as for marketing and working capital needs as the company moves into the marketplace early in 1999.

This round of financing, led by Grotech Capital Group of Timonium, Maryland, included significant investments by Alliance Technology Ventures of Atlanta and by Lucent Technologies of Murray Hill, New Jersey.

Patrick J. Kerins, Managing Director at Grotech and the firm's principal technology investor said, "We were strongly attracted by HWN's business case and by its management team. All of the Company's senior officers have been leaders in significant telecommunications companies and bring years of directly relevant experience to HWN. We believe the home and small business networking market will become a very substantial and competitive market and that HWN has the proprietary technology and people necessary to win."

Stephen Fleming who is General Partner of Alliance Technology Ventures and who also has an extensive background in telecommunications and high technology commented, "At Alliance, we have been close to Home Wireless Networks from the very beginning and we are excited about the business opportunity, the products and the people. Any home or small business which has a PC or more than one phone line will immediately benefit from the company's products and software. That's a very big market and we're delighted to be a major investor in the company."

Lucent Technologies, Inc., which participated in the first round of financing, also made a contribution to the second round.

Home Wireless Networks' Chairman and CEO Dr. John Taylor said, "We are delighted to have secured this round of financing from such quality Venture funds as Grotech and Alliance Technology Ventures in addition to having the continued support of Lucent. We believe that our company is on track and on target and we expect that these funds will see us through the development phase of our products and well into volume production."

Advest, Inc. provided Investment Banking services to Home Wireless Networks and were sole managers of this private placement.

Grotech Capital Group was founded in 1984 and is a private equity investment partnership focused on venture capital, expansion capital and buy-outs in the Mid-Atlantic and Southeastern regions of the United States. Grotech currently manages over $400 million in capital for investment in companies engaged in telecommunications, information technology, healthcare services, consumer products and services, and basic industries.

Alliance Technology Ventures is an early-stage venture capital firm specializing in life sciences and information technology startups. The firm has over $100 million under management from major corporate and institutional investors.