Larscom Enters Subscriber Management Market; Larscom 3000 Sets New Standard for Subscriber Management Solutions.

Business Editors/High-Tech Writers

MILPITAS, Calif.--(BUSINESS WIRE)--Nov. 27, 2000

Larscom Incorporated (Nasdaq:LARS), today announced the availability of the Larscom 3000 -- its first product for the subscriber management segment of the broadband service delivery market.

Designed specifically to meet the needs of rapidly growing, regional and mid-tier service providers, the Larscom 3000 is an auto-configurable, full-featured subscriber management and termination system for broadband networks. It functions as the centralized point for managing retail subscribers and wholesale service offerings. With the Larscom 3000, ISPs and CLECs can manage their subscribers with greater flexibility, speed, and simplicity, all on a low cost, compact, highly scalable platform that supports up to 12,000 subscribers and terminates up to 98,000 subscriber sessions. A single interface can support over 32,000 subscriber sessions.

"The Larscom 3000 is an impressive offering for the Tier2/Tier3 service provider space," commented Adam Guglielmo, DSL analyst at TeleChoice, Inc. "Its AutoProtocol(TM) automatic network configuration capabilities are a strong differentiator in this market. By deploying the Larscom 3000, ISPs and CLECs will be able to quickly turn up new subscriber services with minimal capital

investment."

"For half the price we're getting six times the functionality," stated Ed Hackney, chief technology officer for Evolving Edge Communications. "The Larscom 3000 minimizes our turn-up time by automatically discovering new subscribers and configuring network parameters accordingly. Not only is our cost of deployment lower with the Larscom 3000, but we have immediate cash flow from new subscribers."

"Advanced subscriber management is no longer out of reach for service providers in small to medium-size markets," said Rebecca Horn, Larscom's vice president of marketing. "The Larscom 3000's low cost of entry reduces the service provider's risk when entering new markets and adding new services. It opens the door for new revenue-producing applications such as e-commerce, interactive entertainment, virtual private networks (VPNs), voice-over-IP (VoIP), and video-on-demand."

Ms. Horn continued, "The introduction of the Larscom 3000 is a significant strategic step for Larscom. Now we are able to provide subscriber management products for Internet access in addition to our range of products for WAN access. We plan to expand our product offerings in both of these markets."

The Larscom 3000 can be configured with as many as four subscriber and network interfaces, with support for 10/100Base-T Ethernet, DS3 ATM and OC3/STM-1 ATM, and T1/E1/J1 connections. It has extensive security features and provides full RADIUS-based Authentication, Authorization and Accounting (AAA) support used in dial-in business systems. VPNs are implemented using industry-standard L2TP tunneling allowing service providers to easily offer simultaneous access to multiple networks and establish different service domains. And when provisioned with an Orion 2000, the Larscom 3000 also supports inverse multiplexing over ATM (IMA).

With advanced service features such as AutoProtocol(TM) automatic protocol recognition and configuration, dynamic service selection, and per-subscriber usage information, the Larscom 3000 is the new standard in the fast-paced subscriber and service management industry. The Larscom 3000 is available now.

About Larscom

Larscom Incorporated develops, manufactures, and markets high-speed wide area network (WAN) access equipment. The company's customers include major carriers, Internet service providers, Fortune 500 companies, and government agencies worldwide. Larscom's headquarters are at 1845 McCandless Drive, Milpitas, California 95035. Additional information can be found at www.larscom.com.

Safe Harbor Statement

Any forward-looking statements in this news release are based on current expectations and beliefs and are subject to known and unknown risks and uncertainties that could cause the actual results to differ materially. These risks and uncertainties include (but are not limited to) risks associated with customer concentration, the ability to hire and retain technical talent, the ability to develop successful new products, dependence on recently introduced new products and products under development, dependence on component availability from key suppliers, rapid technological change, fluctuations in quarterly operating results, a significant write down of deferred tax assets that could be required in the event of continuing lack of future profits, and absence of significant backlog, as well as additional risk factors discussed in the "Risk Factors" section of Larscom's annual report on Form 10-K and quarterly reports on Form 10-Q filed with the U.S. Securities and Exchange Commission. These forward-looking statements represent Larscom's judgment as of the date of this release. Larscom disclaims, however, any intent or obligation to update these forward-looking statements.

Note to Editors: Larscom 3000 and Orion 2000 are trademarks of Larscom Incorporated. All other trademarked terms are the property of their respective owners.