Memotec Launches a First in Communications Networking Solutions.

Business Editors

MONTREAL--(BUSINESS WIRE)--May 23, 2000

Memotec Communications Inc. (Memotec) (TSE:MCM.) announced today the launch of its New CX Series, a first in a line of communications networking solutions to offer seamless delivery of services over a single platform, independent of transport infrastructure (IP, ATM, Frame Relay, ISDN).

"Worldwide deregulation is spurring the growth of new service providers offering low cost integrated services over a variety of backbone infrastructures. Providing delivery of these services independent of backbone infrastructure, while assuring Quality of Service (QoS), will enable Memotec to compete aggressively in this space," explains Memotec's President, Mark Silverman. These benefits are made possible by the New CX Series' unique service architecture and interoperability.

Maximizing Opportunities in the US and Around the World

Companies worldwide are moving towards applications such as Enterprise Resource Planning (ERP), Voice over IP, or Distributed Call Centers, which can be supported more efficiently by an integrated voice data infrastructure.

The New CX Series enables these new applications by supporting distributed PBX functions over ISDN, robust IP routing support, and gatewaying of Voice over IP to worldwide PSTN requirements.

Distributed PBX architectures allow a network of PBX's to act seamlessly as a single entity, while the robust IP support coupled with Memotec's Voice over IP implementation allows voice calls to be carried over IP infrastructures anywhere in the world.

These features, and others, enable customers to address new worldwide opportunities and to manage and grow their business.

"In the U.S. businesses and organizations are constantly pushing their technology further in an effort to gain and maintain a competitive edge," explains Lois Rosenberg, Memotec's Vice President, Sales for the U.S., Europe, the Middle East, Africa and Latin America. "The Internet is and will remain key to the success of companies worldwide. To be successful, organizations will have to combine as many services as possible across Internet and Intranet connections. Memotec's New CX Series allows companies to maximize these by converging multiple technologies into their mission-critical networks."

Reducing Costs and Increasing Productivity

Memotec's New CX Series enables telecom carriers and corporate customers to integrate their voice and data traffic, and hence dramatically reduce line costs. With a relatively low up-front investment, customers get a complete networking solution that does not require add-ons.

"We are banking on the belief that customers want to avoid the surprise of a bunch of expensive add-ons after their initial investment. And the New CX Series offers a scaleable solution that gives customers the reassurance that their investment is good for today and tomorrow," says Jacques Bitton, Memotec's Director of Marketing and Development. "Memotec has been present at every step of the telecommunications networking evolution, so we are well-positioned to support next generation infra-structures such as Asynchronous Transfer Mode (ATM) and Internet Protocol (IP)."

About Memotec

Memotec Communications Inc. is a networking company that provides data, voice and video convergence solutions for telecommunications carriers, Internet service providers and corporate customers. Its product line of access devices and edge switches provides consolidation of multiservice traffic over a packet-based and cell-based networks such as Frame Relay, Internet Protocol (IP), and Asynchronous Transfer Mode (ATM).

Memotec's mission is to enable enterprise and carrier customers to lower operational costs and increase productivity by consolidating voice and data over a common infrastructure. With offices around the world, and more than 100,000 products installed in over 94 countries to date, Memotec serves the diverse and specialized needs of customers in Latin America, North America, Europe, Asia and the Pacific Rim. Memotec Communications Inc. is based in Montreal, Canada and is listed on the Toronto Stock Exchange (MCM). More information about the company is available at www.memotec.com.

Note: The statements contained in this announcement are based on the state-of-the-art data information compiled by Memotec as of the date of this announcement.

                        Fact Sheet

The Communications Networking Industry and Memotec

Industry Overview

Telecom Trends

* Communication needs of most organizations have increased
  dramatically over past five years

* Proliferation of IP-based applications such as e-mail,
  Internet/Intranet networks, extranets and e-commerce

* Worldwide deregulation of telecom industry has created true
  competition, lowering the cost of deploying services to customers

* Speed of change - microprocessor speed doubles every 18 months,
  fibre optic capacity doubles every nine months, 1 web year = 3
  calendar months

* Packet-based voice vs. circuit switched voice.

Issues and Challenges

* Explosion in bandwidth demand

* Integration of LAN-based communication with mission-critical legacy
  traffic

* Need to reduce overall costs through the convergence of data and
  voice communications

* Quality of Service (QoS) for packet-based infrastructures

Communications networking trends

* Convergence of voice, video and data

* Standardization and interoperability

* New, high-speed infrastructures based on technologies such as Frame
  Relay, IP and ATM provide means to supply adequate bandwidth and
  quality service

* Customers can interconnect both multiple facility locations and
  small communities of interested parties

* Voice over Frame Relay equipment and ATM access equipment expected
  to grow by approximately 30 % per year over next few years (Vertical
  Systems Group, 1999)

* "We believe current worldwide deregulation will create widespread
  adoption of ATM and IP as carriers deploy multi-service
  backbones." -Mark Silverman, President, Memotec Communications Inc.
 (1999 Annual Report)

How Memotec Fits In

History, Mission, Scope

* Pioneered X.25 packet switching in late 1970s

* Evolved to be come a leader in Frame Relay with an installed base
  of more than 50,000 units

* Recently, Frame Relay technology has been expanded to newer
  backbone technologies such as ATM and IP

* Provides data, video and voice convergence solutions for
  telecommunications carriers, Internet service providers (ISPs), and
  corporate customers.

* Product line of access devices and edge switches provides
  consolidation of multiservice traffic over packet-based networks
  such as Frame Relay, IP (Internet Protocol) and ATM.

Responding to Communications Networking Trends

* Focus on ATM /IP research and development to ensure leading edge
  position in serving North American and worldwide public carrier
  market

* Building on traditional Memotec strength in banking, retail, and
  VSAT (Very Small Aperture Satellite Terminal) by focusing on these
  markets.

Product Lines

Memotec offers the following product lines:

* Multiservice access products for packet-switching networks;

* Frame Relay access and switching products;

* Legacy products including X.25 access and switching products and
  digital access products.


Multiservice access products

      Memotec's objective is to focus all future product development in
this category. Supporting a wide range of data, voice and video
interfaces, these products will allow enterprise customers to transmit
information over a wide variety of WAN services, including ATM, frame
Relay, IP and ISDN.

* CX800: an entry-level, fixed configuration, multiservice access
  switch offering small branch offices convergence of data and voice
  over Frame Relay or IP. It supports a wide range of protocols from
  user devices (SNA/SDLC, Async, 3270 Bisync, transparent HDLC and
  X.25, Frame Relay and Ethernet 10BaseT).

* CX950: a high-performance, multiservice switch that allows the
  convergence of data and voice over cell-based or packet-based
  networks. The CX950 enables customers to choose the WAN technology
  of their choice-ATM, Frame Relay, IP or ISDN. The CX950 also
  provides single-platform consolidation of all enterprise network
  capabilities-LAN/WAN connections, SNA and legacy traffic (SDLC,
  transparent HDLC, Async, 3270 Bisync), voice/fax, X.25, ISDN and
  Frame Relay. It delivers the density, CPU power and flexibility
  required to enable customers to satisfy current requirements while
  retaining the ability to grow to meet future requirements.

Frame Relay Access and Switching Products

      Memotec offers a wide range of Frame Relay products used by
customers to access public Frame Relay networks and to build private,
public or hybrid Frame Relay networks. The company entered the Frame
Relay market in January 1992 with an access product line called the
SP9000. Today, Memotec's Frame Relay products span the complete
access, multiport access and edge switching market.

* CX900e: a multiprotocol Frame Relay access device offering unmatched
  flexibility and modularity, full I/O scalability with support for
  Ethernet, token Ring, voice, fax, SNA/SDLC, X.25 and the 100Base T
  Fast Ethernet, T1/E1 DSU, multi-port serial I/O and ISDN S/T
  features. The Cx900e is ideal for corporate branch offices and is
  perfectly suited to today's need for integrated networking solutions
  over Frame Relay.

* CX1000e: a multi-port access device and edge switch supporting
  multiprotocol data, including Ethernet, Token Ring, voice (digital
  and analog), fax, SNA/SDLC, X.25 and other legacy protocols. The
  CX1000e provides both I/O and CPU scalability, making it ideal for
  enterprise switching and service provider applications.

* FR970: a Frame Relay concentrator/access device offering an
  optional Ethernet LAN interface.

* FR870: a two-port Frame Relay access device (FRAD).

* CL2500: a branch office bridge/router supporting Ethernet over
  Frame Relay.

Legacy Products

      The X.25 protocol is recognized as an international standard for
connecting terminals and host computers to packet switching networks.
Memotec was involved in the development of the X.25 standard and,
although its revenue share from this field is declining, Memotec
continues to honor its commitments to its installed base of customers.

* Packet Assembler/Disassembler (PAD) supports a wide range of
  protocols inlcuding IBM SNA/SDLC, IBM 3270 Bisync, Burroughs
  Poll/Select and Sperry Uniscope, as well as many Asynchronous
  protocols. The product line includes three families-the 8000, 9000
  and 600 Series.

* Memotec currently markets two lines of CSU/DSUs. The IDM product
  line includes diagnostics and network management capabilities. The
  ISU family is a high-performance product line offering many features
  and is compatible with diagnostics.

* Memotec entered the high-speed digital access market by offering the
  IDM plus ISU 1500 in 1994. These products conform to North American
  digital service standards and support both full and fractional T1
  speeds. The IDM products offer SNMP management capabilities. Today
  Memotec has integrated digital access capabilities into its line of
  Frame Relay products, adding value by providing an optional CSU/DSU
  capability.


New CX Series highlights

Memotec's New CX Series features:

* Standardization: Standards based on H.323 (Voice over IP
  technology), G.729 and QSIG signalling (used in private corporate
  ISDN networks).

* QSIG: Enables a distributed network of PBXs to act as a single
  entity.

* FRF.8 Plus: Memotec has adapted to industry standards to provide
  customers with maximum flexibility. But with the unique FRF.8 Plus,
  Memotec has extended the FRF.8 standard to enable real-world
  flexibility in ATM to Frame Relay interworking and to provide
  enhanced QoS.

* Toll quality independent of network load: To ensure high QoS, the
  New CX Series features differentiated services using prioritization
  techniques applied at the link level. This lets customers enjoy
  maximum bandwidth efficiency, without sacrificing quality.

* CXTool: A GUI-based, user-friendly tool lets New CX Series customers
  configure their network easily and quickly, view network and data
  streams for easy management, and access billing and statistical
  information.

Industry Recognition

* Network Computing's "Well-Connected Award" for CX900e(TM) - 1999

* Teleconnect's "Editors' Choice" Award for CX800 Access Switch -
  1998

* Network Computing Magazine's "Editor's Choice" and "Flying colours"
  awards for video over Frame Relay - 1998

* CX950: Finalist in the ATM access category, Network Computing's
  "Well-Connected Award" - 2000