Telaxis Communications Announces Agreement With Marconi.

Business/Technology Editors

SOUTH DEERFIELD, Mass.--(BUSINESS WIRE)--Feb. 5, 2001

Telaxis Communications Corporation (Nasdaq:TLXS), a leading provider of broadband wireless access products, today announced that it has signed an agreement with Marconi (Nasdaq:MONI) to supply RF subsystems for Marconi's highly successful Skyband range of broadband wireless products. Under the terms of the agreement, Marconi has selected Telaxis to initially supply 28GHz outdoor RF equipment for the base stations and customer located equipment of its MDMS point-to-multipoint system.

The agreement also contemplates expanding the relationship to other frequency bands in order to address new opportunities in European Community, North American and other world markets. The parties also intend to explore potential applications of Telaxis' technology to Marconi's point-to-point product range and the exchange of information and potential collaboration on the development of monolithic microwave integrated circuit (MMIC) devices for future millimeter-wave products.

Commenting on the agreement, Richard Bayley, Vice President of Marketing at Marconi Communications' Access Networks division said: "Marconi's Skyband portfolio enjoys the largest commercial deployment of broadband fixed wireless access solutions in Europe today. The agreement announced with Telaxis today will provide Marconi with greater capacity to support new emerging frequencies in a timely and innovative way. In addition to delivering broadband access to both business and residential users Marconi also sees significant new potential for its point-to-point and point-to-multipoint products in the GSM 2.5G and UMTS-3G mobile networks that its customers are beginning to deploy."

"Time to market is crucial for success in today's fast changing markets. Our agreement with Telaxis will enable us to bring more products to market sooner. Telaxis has demonstrated to us their leadership in millimeter-wave product design, development and manufacturing. Together we will be able to respond even faster by applying our technology to a wider range of new frequencies as these are released by regulators around the world."

Dr. John Youngblood, President and Chief Executive Officer of Telaxis commented on the agreement as follows: "We are pleased to announce this agreement with Marconi. The European and ETSI (European Telecommunication Standards Institute) markets are at an exciting stage of development and are markets we were not previously addressing. Working with Marconi represents a significant opportunity for Telaxis to enter the rapidly expanding European market. Marconi is a leader in the ETSI markets for access systems with their wireline and wireless solutions, and we are fortunate to be collaborating for this important step."

"We will be supplying cutting-edge products for Marconi that take advantage of our extensive capabilities and experience gained in developing and shipping over 17,000 units during the past two years."

About Marconi plc

Marconi plc is a global communications and IT company with around 49,000 employees world-wide and sales in over 100 countries. It supplies advanced communications solutions and the key technologies and services for the internet. Marconi plc is listed on the London Stock Exchange and Nasdaq under the symbol MONI.

About Telaxis Communications

Telaxis develops and supplies broadband wireless access products used by network service providers to deliver integrated voice, video and data services to business and residential customers. Telaxis has developed an extensive portfolio of point-to-multipoint products which enable both rapid time-to-market and cost-effective mass-production for commercial deployments. For more information about Telaxis Communications Corporation, please visit its website at www.tlxs.com or contact the company by telephone at 413-665-8551 or by email at [e-mail].

Statements in this press release that are not based on historical facts, such as statements regarding our business outlook, prospects and anticipated results, may be considered forward-looking statements that involve risks and uncertainties. Our actual results may differ materially from the results discussed in these forward-looking statements. Factors that could cause or contribute to such differences include, without limitation, dependence on a limited number of customers; difficulty in obtaining necessary components and raw materials when, at the cost and in the quantities needed; failure of our customers to sell broadband wireless access solutions that include our products; manufacturing capacity constraints; difficulty in obtaining satisfactory performance from third-party manufacturers; inability to achieve cost reductions and technological improvements; difficulties in managing our expansion; loss of key personnel; inability to protect our proprietary technology; probable variability in our quarterly operating results; dependence on third parties; changes in the market; lack of market acceptance of broadband wireless technology and products; new products and announcements from other companies; changes in technology; and the impact of competitive products and pricing. Further information on these and other potential factors that could affect our actual results is included in our periodic reports and filings made from time to time with the Securities and Exchange Commission, including on Form 10-K and Form 10-Q.

Telaxis Communications and its logos are trademarks of Telaxis Communications Corporation. Other names may be trademarks or service marks of their respective owners.