Terayon Cable Modems Deployed by Leading Swiss Cable Operators; Deployment in Networks Passing Over 330,000 Homes Increases Terayon's Share of European Cable Modem Market.

SANTA CLARA, Calif.--(BUSINESS WIRE)--June 1, 1999--

Building on its momentum in Europe, Terayon Communication Systems (Nasdaq:TERN) today announced that 12 leading cable operators in Switzerland have chosen to deploy Terayon's cable modem systems in their networks, which collectively pass more than 330,000 homes.

"The success we are having in signing up multiple operators in cities of various sizes in Switzerland speaks to the flexibility and reliability of the Terayon systems," said Zaki Rakib, CEO of Terayon. "We are pleased that a country recognized the world over for precision and excellence in engineering has embraced Terayon's cable modem technology."

The 12 operators are Telezug AG, Urbanet SA, Besonet AG, Technische Betriebe Wil, Stadtische Werke Dubendorf, Radio Schefer AG, Genossenschaft Gemeinschaftsantennen Ruswil, Inglobe GmbH, Ville de Lausanne, Gemeinde Uitikon, EW Aarberg and Gemeindebetriebe Herzogenbuchsee.

Telezug, which serves the city of Zug in central Switzerland, passes 42,000 homes with its cable network. Thomas Reber, managing director of Telezug, stated, "The robustness of the Terayon system has allowed Telezug to offer highly reliable data services, and to bring them to market in a very short period of time. Our current data customers include a broad range of users -- from residential to commercial, as well as schools and government agencies."

Urbanet, a cable service provider reaching 180,000 homes in the city of Lausanne and the surrounding area of Switzerland, has selected Terayon to provide high-speed data services to their mix of commercial and residential subscribers.

Pino d'Oro, the managing director of Urbanet, stated, "We are extremely pleased with the fast installation rate for the Terayon modem systems. The systems' reliability has allowed us to install the modem systems extremely fast, and to deliver our subscribers both residential and commercial-class data services. We are replacing an existing technology with Terayon's new generation system."

Terayon's cable modem systems were also selected by Besonet, a group of cable operators serving Grenchen, Lyss, Brugg and other Swiss cities. Collectively, Besonet's systems pass approximately 83,000 homes.

"Using the Terayon modem systems, we were able to achieve record time-to-market, moving from initial contract to system installation in less than two months," said Peter Ryser, managing director of Besonet. "We have been impressed with the systems' high reliability in supporting data services to our residential and small business subscribers."

Terayon modems have been successfully installed in the city of Wil by the local cable operator, Technische Betriebe Wil -- a system with 27,000 homes passed. Stefan Huber, manager of CATV services at Technische Betriebe Wil, stated, "We have been impressed with the robustness of the Terayon system, which allows us to conserve our headend capital equipment outlay. We have had excellent success in signing up customers for residential Internet access, and expect to launch dedicated data services for commercial subscribers soon."

The Swiss orders represent the latest major contracts for Terayon in Europe. In March, the company received an order from United Pan-Europe Communications (UPC) for 225,000 cable modems and associated headend equipment. UPC has cable systems in 11 European countries, passing 4.8 million homes. Terayon systems are currently deployed by European cable operators in Belgium, France, Hungary, and Ireland, as well as by major cable operators in North America, Latin America, and Asia.

Access Technologies AG of Wallisellen, Switzerland is Terayon's local partner, providing sales and support to the Swiss operators as they deploy Terayon cable modem systems.

Terayon cable modems are well suited to the Swiss cable market. The systems' high capacity and reliability allow them to support a broad range of residential and commercial data services across cable plants, ranging from all-coaxial systems to hybrid fiber/coax (HFC). Terayon's systems incorporate sophisticated Quality of Service (QoS) capability, allowing control of bandwidth in precise increments.

This allows cable operators to offer tiered services to their subscribers -- from residential Internet access to business services for data and telephony. Terayon's cable modem systems, based on S-CDMA (Synchronous Code Division Multiple Access) technology, provide reliable two-way performance over the broadest range of cable systems. In addition, the high reliability of Terayon's S-CDMA technology provides cable operators with lower operating and maintenance costs.

Terayon Communication Systems provides cable operators with reliable, high-capacity cable modem systems that support a full range of broadband services. The company, based in Santa Clara, has sales and support offices worldwide, and is traded on the Nasdaq National Market under the symbol TERN. Terayon's European headquarters are based in Waterloo, Belgium, and the company has a network of distributors throughout Europe. Terayon can be found on the web at www.terayon.com.

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