Interphase and Hughes Software Systems to Offer Integrated 3G Wireless Internet Solution.

Business Editors & High-Tech Writers

CTIA Wireless 2002

ORLANDO, Fla.--(BUSINESS WIRE)--March 18, 2002

Interphase Controllers Integrate with HSS Signaling Stacks to

Enable 3G Wireless Internet Solutions

Interphase Corporation (Nasdaq:INPH), an international supplier of next-generation networking technologies, and Hughes Software Systems (HSS), India's leading communications software company and specialists in convergent network software, today announced a strategic partnership to develop commercial off-the-shelf (COTS) products providing original equipment manufacturers (OEMs) with a single product source for Broadband SS7 and ATM networks.

Interphase and Hughes have developed convergence layer software between Hughes' upper layer protocols that run on the system host and Interphase's lower layer protocols that run on-board their intelligent controllers, providing complete pre-integrated SS7 and Asynchronous Transfer Mode (ATM) software solutions for customers. The partnership enables the integration of HSS' Narrowband and Broadband SS7 stacks with Interphase's 6535 CompactPCI T1/E1 Communications Controller and the integration of HSS' ATM stacks with Interphase's 4532 ATM over OC-3/STM-1 Communications Controller. This integrated solution allows OEMs to significantly reduce their time-to-market for universal mobile telecommunications systems (UMTS) network nodes, such as radio network controllers (RNC) and serving GPRS support nodes (SGSN).

"This partnership enables our customers to build cost-effective wireless infrastructure equipment with advanced open-systems hardware and fully certified off-the-shelf protocol software," said Interphase CEO and President, Greg Kalush. "With this integration, Interphase and HSS can increase our solutions offerings to new and existing customers and speed their time-to-market with drastically reduced deployment time."

"HSS offers commercial off-the-shelf GPRS and UMTS software products that can be integrated with hardware boards, computing platforms or special devices, thereby enhancing the value for the hardware vendors," said Arun Kumar, President and Managing Director of Hughes Software Systems. "This combination of higher layer protocol stacks and solutions from HSS, and signaling controllers and software from Interphase, provides OEMs the complete solution for rapid development of mobile data applications on traditional and new networks."

The 4532 PMC ATM Over OC-3/STM-1 Communications Controller is designed for carrier-class telecommunication networks supporting the most demanding ATM and IP applications, including second and third generation wireless, 'converged' next-generation networking, broadband Internet/telephony access and integrated voice and data over carrier and enterprise applications. The Interphase 6535 T1/E1/J1 Communications Controller has also been integrated into multiple wireless designs with its ability to support the migration from narrowband to broadband SS7 in a single solution, with a comprehensive array of protocol and operating system support, and robust development tools to simplify the integration process.

HSS provides the pre-integrated software stacks directly from the SAAL-NNI layer, creating an off-the-shelf solution that enables rapid deployment of applications and services. HSS protocols and solutions help facilitate development and implementation of 3G products and services for OEM's, allowing them to achieve significant reductions in development time for next generation equipment while freeing them from the time and expense of developing complex communications software in-house.

Integrating Interphase's hardware and software with HSS' software smoothly creates the convergence layer software; leaving developers time to focus on the application. This exciting integration will be on display in a 3G demo in the Interphase booth (#3624) at CTIA in Orlando, Fla. Distribution of the convergence layer software will be available in early Q2 of this year.

About Interphase Corporation

Interphase Corporation designs and delivers high performance connectivity adapters for computer and telecommunication networks. The company's products connect computer and telecommunication servers to Wide Area Networks (WANs), Local Area Networks (LANs) and Storage Area Networks (SANs) using Asynchronous Transfer Mode (ATM), Ethernet, Signaling System (SS7), Frame Relay, Ethernet, Fibre Channel, Frame Relay and Integrated Services Digital Network (ISDN) technologies. Headquartered in Dallas, with offices across the United States, Paris, London, Munich and Bangkok, Interphase 2001 revenues were $28.7 million. Clients include Lucent Technologies, Nortel Networks Ltd., Ericsson Inc., Hewlett-Packard Co., IBM Corp., Compaq Computer Corp., Motorola Inc., Fujitsu Ltd., Lockheed Martin Corp. and the Raytheon Company. Additional information about Interphase and its products is available through the company's web site at www.interphase.com.

About Hughes Software Systems (HSS)

Hughes Software Systems Ltd. (HSS), Specialists in Convergent Network software and India's leading communications software company, offers a broad range of communications-related software services, products, and solutions to leading Communication OEMs around the world. HSS' technology focus is in the convergence market with products and services in Next Generation Networks, and Mobile Data. Assessed at SEI-CMM Level 4 for all its development centers and all projects, HSS been an ISO 9001 company since 1996. HSS is a subsidiary of Hughes Network Systems, a unit of Hughes Electronics Corporation. HSS' U.S. headquarters are located in Germantown, Md.

Ranked among the five best companies to work for in India, by Hewitt Associates, HSS has a team of over 1500 world class professionals, at its development centers in India: at Gurgaon, a suburb of New Delhi and in Bangalore. With sales and support offices in the US, the UK, Germany and Finland, it is represented throughout Europe, South America, and Asia to support its global customer base.

Safe Harbor

This press release contains forward-looking statements with respect to financial results and certain other matters. These statements are made under the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and involve a number of risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such risks and uncertainties include, without limitation, fluctuations in demand, the quality and price of similar or comparable networking products, access to sources of capital, general economic conditions in the company's market areas, and that future sales and growth rates for the industry and the company could be lower than anticipated.

The Interphase logo is a registered trademark of Interphase Corporation. All other trade and service marks are property of their respective companies.