Maxlink Selects Clarent Products For First North American IP Telephony Over Wireless Local Loop.

Business Editors/High-Tech Writers

REDWOOD CITY, Calif. and TORONTO--(BUSINESS WIRE)--August 29, 2000

Clarent(TM) Corporation (Nasdaq:CLRN), a worldwide leader in providing carrier-grade, phone-to-phone Internet Protocol (IP) telephony solutions, and Maxlink Communications Inc. (maxlink), an emerging provider of advanced communications and e-business services, today announced that the companies have entered into a Memorandum of Understanding (MOU), whereby Clarent is to supply maxlink with a complete, end-to-end IP telephony solution for local and long distance calling. As part of its network, maxlink intends to turn up the first Clarent-based IP telephony local access solution over broadband wireless local loop (LMDS) technology in North America. maxlink also plans to install Clarent products to offer international and domestic IP telephony-based long distance services.

Under the MOU, maxlink plans to purchase equipment and services from Clarent over the next 2 years that have a value of up to $20 million Canadian dollars ($13.5 million U.S. dollars). Potential purchases over a five-year period total up to $100 million Canadian dollars ($67.4 million U.S. dollars).

The purpose of the maxlink and Clarent strategic relationship is to establish a world-class, next-generation VoIP network, providing carrier-quality voice services with all the commonly used features and functionality of traditional telephone networks, as well as innovative services enabled by IP. These will be integrated with maxlink's Internet, data, video and applications services offered on maxlink's national IP-based network.

"New and innovative applications such as maxlink's use of broadband wireless are underscoring the scope, versatility and long-term viability of VoIP solutions," said Tom Valovic, IP telephony industry analyst, International Data Corporation.

maxlink plans to offer IP telephony-based services to customers throughout Canada, beginning with Toronto, Montreal, Ottawa, Calgary and Vancouver, and expanding to more than 60 cities by 2003. maxlink will provide international calling through the global PSTN network, as well as through partnerships with other IP telephony clearinghouse providers.

With its planned Clarent-based network providing local and long distance voice services using VoIP technology, maxlink believes it is one of the most advanced IP-based service providers, offering everything from Internet and ASP services, to a complete carrier voice offering.

"maxlink is extremely excited about deploying one of the world's first end-to-end IP telephony solutions that includes broadband wireless access," said Joel Bell, president and CEO, the Maxlink Communications Group of companies. "As a broadband IP-based service provider, we have been anxious to bring voice services to our customers using this same infrastructure. For maxlink, voice is an essential part of offering a complete service solution. We have focused on using VoIP technology for innovative voice and voice-related services and network efficiency. We found Clarent to be the only supplier able to offer local and long distance IP telephony solutions today, with an intelligent, software-driven back-end management system. We look forward to working closely with Clarent as we provide Canadians with next-generation, state-of-the-art communications solutions."

"maxlink is an excellent partner for Clarent," said Rich Heaps, COO, Clarent Corporation. "We believe maxlink sets an example for the communications industry and the world by building a complete, IP-based communications solution from the ground up, to include local and long distance voice communications. Clarent is very pleased to be chosen to supply these new products to maxlink and to help maxlink build a showcase, next-generation communications network."

The MOU calls for maxlink to offer services based on Clarent Gateways; the forthcoming Clarent Call Manager; Clarent-fueled local access VoIP Customer Premise Equipment; the Clarent Command Center and associated database; and other Clarent products. The first service offering is intended to be turned up in early 2001, with a planned expansion to more than 60 markets across Canada by 2003.

Forward Looking Language

This release may contain forward-looking statements that involve risks and uncertainties, including potential issues relating to interoperability, inability to introduce new products, ability to retain customers, changes in market conditions, government regulations, the international communications industry, technological changes and other factors, which could cause actual results to vary materially from those expressed in or indicated by the forward-looking statements. These risks and uncertainties are described further in the risk factors discussed in Clarent's periodic filings with the SEC.

About Clarent Corporation

Clarent Corporation (Nasdaq:CLRN) is the world leader(a) in providing intelligent, software-driven products for new generation, IP-based communications networks. Clarent solutions enable interconnection among communications service providers' disparate networks and foster the creation of global footprints for more than 260 telecom service providers worldwide, including AT&T, NTT and China Telecom. Clarent's software platform encourages innovation by allowing carriers to develop limitless new features for consumers and enterprises. Founded in 1996, Clarent is headquartered in Redwood City, Calif. and has offices in Asia, Europe, Latin America and North America. To learn more about Clarent, visit its Web site at www.clarent.com.

About Maxlink Communications

maxlink, established in 1996, is dedicated to making it easy for Canadian organizations to realize new levels of competitiveness through advanced communications, e-commerce, and access to business software solutions providing "Access to what's next." maxlink (www.maxlink.com) is the first Canadian company to use advanced, next-generation broadband, fixed wireless and leading-edge wireline and fibre technologies to establish these services throughout Canadian cities. The company's fixed wireless licenses give it 1,000 megahertz of bandwidth capacity in every community of more than 2,000 households across Canada.

Notes to Editors: Clarent is a registered trademark of Clarent Corporation in the United States and other jurisdictions. All other company or product names mentioned may be trademarks or registered trademarks of the respective companies with which they are associated.

maxlink, the maxlink logo and "Access to what's next" are trademarks of Maxlink Communications Inc. 2000. All rights reserved.

(a) More minutes travel across Clarent-enabled networks worldwide than those of any other equipment supplier. "IP Telephony Clearinghouses - A New Business Model," November 1999, iLocus, a division of Cape Saffron Ltd., a research group focused on the IP telephony industry, http://www.ilocus.com.