Nucentrix Successfully Completes Initial Field Trial of Cisco Broadband Fixed-Wireless Solution.

Business & Technology Editors

PLANO, Texas--(BUSINESS WIRE)--Aug. 15, 2000

Nucentrix Broadband Networks, Inc. (Nasdaq:NCNX), today announced the successful completion of the initial phase of its broadband fixed-wireless trial using leading technology from Cisco Systems, Inc. (Nasdaq:CSCO), the worldwide leader in networking for the Internet. With the successful completion of this trial, Nucentrix remains on schedule to commercially launch broadband wireless services within the next six months.

Earlier this year, Nucentrix became the first service provider to announce that it plans to offer broadband wireless Internet access using Cisco's WT2700 Broadband Wireless solution that is based on Vector Orthogonal Frequency Division Multiplexing (VOFDM) technology. Nucentrix, a provider of broadband wireless services in medium and small markets, will use its Cisco-enabled wireless infrastructure to provide its customers with broadband wireless Internet access and eventually, telephony services.

"The successful completion of our initial broadband fixed-wireless trial marks a major milestone for Nucentrix, Cisco and the broadband wireless industry," said Russ Wiseman, senior vice president of Internet Operations at Nucentrix. "The Cisco WT2700 Broadband Wireless solution met all our expectations at this stage of development. We look forward to building upon the Austin trial with Cisco in Amarillo, Texas, and using their non-line-of-sight platform to become a leading provider of broadband wireless services in our markets."

Using Cisco's WT2700 Broadband Wireless solution for the 2.5GHz Multichannel Multipoint Distribution Service (MMDS) band, Nucentrix conducted a three-month field trial in Austin, Texas, and is now preparing for a second field trial in Amarillo, Texas that is expected to be completed by October 2000, subject to receiving developmental authorization from the Federal Communications Commission (FCC). Upon successful completion of the Amarillo trial and receipt of final regulatory approval from the FCC, Nucentrix expects to launch Cisco-based broadband wireless services in a majority of its top markets by the end of 2001.

"Cisco is excited by the success of the Nucentrix trial in Austin. We look forward to helping them roll out commercial services, and confirming their confidence in our solution's lower deployment costs and increased subscriber coverage in non-line-of-sight conditions. Cisco is very pleased to be working with Nucentrix to enable broadband access services such as high-speed Internet, virtual private networks and voice applications," said Constantin Loudiadis, vice president and general manager of Cisco's Wireless Access Business Unit.

Cisco's WT2700 Broadband Wireless solutions run native Cisco IOS(R) software, and seamlessly integrate into Cisco's networking infrastructure, network management and provisioning tools. In addition, the VOFDM technology will lower the cost of provisioning a wireless network while increasing overall subscriber coverage. With Cisco's solutions, consumers and businesses will be able to receive broadband access in more areas at more affordable costs.

About Nucentrix

Nucentrix Broadband Networks, Inc. provides broadband wireless network and subscription television services using up to 196 MHz of radio spectrum in the 2.1 GHz and 2.5-2.7 GHz range, commonly referred to as Multichannel Multipoint Distribution Service (MMDS). Nucentrix Internet Services, Inc., a wholly owned subsidiary, operates high-speed Internet access businesses under temporary developmental FCC licenses in Austin and Sherman-Denison, Texas. Nucentrix currently holds broadband wireless spectrum rights in 94 medium and small markets in the central United States, including four markets which Nucentrix has agreed to purchase under a definitive agreement or letter of intent, each of which is subject to customary closing conditions.

This media release contains forward-looking statements regarding the business and operations of Nucentrix, including the deployment by Nucentrix of broadband wireless services using VOFDM technology. These statements are identified by words such as "plans," "will," "expects" and other words referring to events to occur in the future. These statements involve risks and uncertainties that may cause actual results and developments to differ materially from the statements in this media release, including failing to obtain necessary regulatory approvals, deploy services based on VOFDM technology and finalize pending transactions. Other risks and uncertainties regarding Nucentrix, the industries in which it operates and the implementation of its business strategy are described in Nucentrix's Form 10-Q filed August 11, 2000, Form 10-K filed March 30, 2000 (as amended by Form 10-K/A) and other SEC reports of Nucentrix filed after April 1, 1999. Nucentrix undertakes no obligation to update any forward-looking statements made in this media release.