U.S. Robotics shatters speed barrier: Delivers 56 Kbps over standard telephone lines.

SKOKIE, Ill.--(BUSINESS WIRE)--Oct. 16, 1996--

Internet Service Providers Embrace New x2 Technology; Plan Field Trials & Roll-Out

U.S. Robotics (NASDAQ:USRX) Wednesday announced a key breakthrough in modern technology that provides Internet and on-line connections at speeds nearly twice as fast as those currently available over standard telephone lines.

U.S. Robotics' new x2 increases the top speed of a standard modem for downloading data from 28.8 or 33.6 Kbps to 56 Kbps -- equivalent to many Integrated Services Digital Network (ISDN) connections, but without the need for expensive new central office equipment required by other high-speed technologies.

SERVICE PROVIDERS SIGN UP FOR x2

U.S. Robotics also announced that the world's leading Internet and on-line service providers support x2. To date, more than 30 service providers worldwide have agreed to participate in field trials with broad roll-out plans to follow.

``As the worldwide leader in providing consumer Internet on-line services, America Online is excited about the x2 technology that will provide our more than 6.2 million members the ability to access AOL at even faster speeds,'' said Matt Korn, vice president, operations, America Online. ``We will continue to work with innovative technology, like x2, which will expand our members' experience and enable them to use a variety of multimedia services on AOL.''

``We plan to aggressively deploy this new high-speed modem technology across the IBM Global Network's more than 500 local calling points in the U.S.,'' said Gary Weis, general manager, worldwide operations, IBM Global Network. ``As soon as this new feature becomes available, IBM Global Network will implement x2 via our automated software download process that enables customers to obtain network enhancements like this easily and quickly,'' he said. In the near term, IBM Global Network will use x2 technology in the U.S., Canada and 14 other countries.

``If you'd said a year ago that an average home user could be on the Net at 56 Kbps, people would probably have accused you of being mad -- but the future seems to keep arriving ahead of schedule,'' said Paul Rivers, technical director at UUNET PIPEX, a leading Internet Service Provider in the United Kingdom. ``U.S. Robotics has `come up trumps' again, and UUNET PIPEX will upgrade its network to the fastest speed possible the instant the technology becomes available.''

These service providers already use U.S. Robotics' Total Control Enterprise Network Hub, a remote access server, which will enable them to quickly and easily upgrade their networks and offer x2 service to millions of existing subscribers.

With the introduction of x2, U.S. Robotics will deliver the industry's only immediate, end-to-end higher speed solution for both individuals and service providers. ``No other company has both the market presence and systems architecture to immediately provide on line and Internet Service Providers (ISPs) with a significantly faster and better Internet experience,'' said Casey Cowell, chairman, chief executive officer and president of U.S. Robotics.

U.S. Robotics submitted a proposal for 56 Kbps modem speeds to the ITU-T in September. As a key contributor to many past standards, the company plans to lead the effort to standardize 56 Kbps technology worldwide. However, because of the typically lengthy time to bring a standard to fruition, U.S. Robotics is bringing x2, a proprietary technology, to market immediately.

``The unique combination of USR's market leadership in modems and Texas Instruments' market leadership in DSP (Digital Signal Processor) solutions will set a new standard in Internet access for the networked society,'' said Rich Templeton, SemiConductor Group president for Texas Instruments. ``USR's new x2 technology enables solutions for a wide variety of communications products, and TI is pleased to be part of this innovative technology.''

WHY FASTER IS BETTER

Surfing the World Wide Web has become immensely popular, but the increase in complex graphical content on web sites has slowed the downloading process. x2 substantially speeds up the delivery of information and reduces time wasted waiting for information, thereby increasing productivity for users.

``As the Internet continues to evolve from a novelty into an important business tool, customers are demanding faster and more reliable service,'' said Steve Tabaska, executive director, MCI data services engineering. ``Through the use of U.S. Robotics' x2 technology, MCI will be able to offer our dial-up Internet customers faster connectivity without the added expense of an ISDN line. And while ISDN is offered only in limited areas, x2 will be available almost everywhere from customers' existing phone lines.''

Most Internet access continues to take place over regular telephone lines, so x2 technology is expected to have a widespread impact. ``Increasing the speed at which data can be delivered will dramatically improve service for those already using the Internet, and it will encourage more people to get connected,'' Cowell said.

X2 ENHANCES CORPORATE REMOTE ACCESS

Any corporation can easily add x2 to existing Total Control systems through a software upgrade. This flexible upgrade path is unmatched in the industry and is the reason many major corporations have standardized on Total Control. The system was designed with ``investment protection,'' which allows customers to easily take advantage of new technologies without completely changing to new hardware in their networks.

U.S. Robotics' corporate and smaller ISP customers also will benefit from the company's other remote access products that will offer x2.

``Corporate applications are fueling tremendous growth in remote access,'' Cowell said. ``As the top remote access provider, U.S. Robotics will be the company that delivers multiple higher-speed solutions,'' he said.

X2 TECHNOLOGY BOOSTS ``DOWNSTREAM'' DATA DELIVERY

U.S. Robotics develops its own modem technology, unlike competitors who purchase ``chipsets'' from third parties. By using DSPs, which are programmable modem engines, U.S. Robotics has the flexibility to innovate new capabilities, unlike most other companies.

x2 is an asymmetrical technology that supplies 56 Kbps ``downstream'' for transmissions from service providers. It takes advantage of a special network configuration commonly encountered when an analog subscriber establishes a connection with a data server that is digitally connected to the Digital Telephone Network (DTN). This new transmission technique differs fundamentally from the modulation techniques used for high speed modems.

This model is ideal for Internet or remote access because information sent to the individual desktop is typically graphics-based and requires a high-performance channel. User requests, such as http commands, require less bandwidth and can be transmitted quickly ``upstream'' at conventional 28.8 or 33.6 Kbps speeds.

Because of U.S. Robotics' flexible software-based modem architecture, the company also has the capability to add both proprietary protocols and standards to its products, ensuring compatiblity and connections with other products at the highest speeds available.

IT'S EASY TO UPGRADE TO X2

In many cases, individuals will be able to obtain a simple, inexpensive upgrade for their U.S. Robotics modems. U.S. Robotics Sportster modems now on retail shelves worldwide can be upgraded to x2; Sportster x2 upgrades will be available in January 1997.

The vast majority of homes and offices will be able to take advantage of x2, although some lcoations may not be able to achieve these speeds because the configuration of the local telephone loop will not accommodate the service. The connection at those locations will fall back to the highest standard modem speed available on that line.

U.S. Robotics will conduct field trials in November and begin shipping x2 to Internet and on-line service providers as well as end users during the first calendar quarter of 1997.

U.S. Robotics is one of the world's leading suppliers of products and systems that provide access to information.

The company designs, manufactures, markets and supports remote access servers, enterprise communications systems, desktop/mobile client products and modems and telephony products that connect computers and other equipment over analog, digital and switched cellular networks, enabling users to gain access to, manage and share data, fax and voice information.

Its customers include Internet service providers, regional Bell operating companies, inter-exchange carriers and a wide range of other large and small businesses, institutions and individuals. -0-

         INTERNET SERVICE PROVIDERS WORLDWIDE SUPPORTING
               U.S. ROBOTICS x2 TECHNOLOGY


NORTH AMERICAN AND GLOBAL PROVIDERS       GERMANY
America Online                            Bertelsmann ZI/MediaWays
ANS                                       metronet
Commonwealth Telephone
CompuServe                                HONG KONG
CyberGate                                 Hong Kong Star Internet
HookUp (Canada)                           Hong Kong Telecom
IBM Global Network
Netcom                                    JAPAN
MCI                                       ASCII
Mindspring                                Business Network Telecom
Prodigy                                   Global Online
TDS Telecom                               Tokyo Internet
US West
Web America                               NORWAY
                                          Telenor Online
AUSTRALIA
Microplex                                 TAIWAN
Netexpress                                New Silkera Network
                                          WowNet
AUSTRIA
Netway                                    UNITED KINGDOM
                                          Cable Online
FRANCE                                    UUNET Pipex
Grolier Interactive Europe

CONTACT: U.S. Robotics

Karen J. Novak, 847/982-5244

or

Phillips & Assoc. Inc.

Scott Phillips, 312/943-8858.