VDSL Systems Integrates Motorola's Open Platform Into Advanced DSL Technology Equipment.

Business Editors/High-Tech Writers

DENVER--(BUSINESS WIRE)--Oct. 22, 2001

VDSL Systems:

Helps Telecom Operators Speed Services and Add New Ones While

Increasing Range on Existing Copper Lines

VDSL Systems announced today that it will integrate an open hardware/software system-level platform from Motorola Computer Group, a part of Motorola, Inc. (NYSE:MOT), into its complete Internet Protocol (IP) VDSL equipment.

VDSL Systems' complete IP VDSL Equipment Solution, the fastest VDSL access solution to be introduced to date, will now combine VDSL Systems technology with Motorola manufacturing support to make standardized NEBs compliant product available on a global level.

VDSL Systems technology is designed to help telecommunications companies and service providers bridge "the last mile" at speeds current DSL technologies can't even approach. Very high speed digital subscriber line (VDSL) technology, supported by VDSL Systems' equipment, makes applications such as video on demand, videoconferencing, HDTV and other network solutions commercially viable for both businesses and consumers. With an effective range of 5,000 feet (approximately 1,500 meters) and speeds of 10 to 23Mbps, VDSL Systems' equipment gives telecommunications companies and service providers speeds unparalleled with current DSL technology.

In rolling this technology out in Europe and North America, VDSL Systems will build its solutions using infrastructure from Motorola -- specifically, Motorola's CPX1205 CompactPCI(R) platform and its High Availability Software for Linux (HA Linux), which was recognized this month by the International Engineering Consortium as an InfoVision 2001 award winner. The result is a complete carrier-grade solution marketed by VDSL Systems to telecom operators globally.

"By purchasing a platform from Motorola, VDSL Systems is able to quickly integrate its VDSL hardware and software solutions and bring this breakthrough technology to operators everywhere much faster," said Mark Rooney, CEO of VDSL Systems. "This collaboration will help telecom providers offer services over existing copper lines that need the speeds our new IP technology delivers. This can immediately impact their bottom lines which is especially critical in a slow economy when our customers must protect existing equipment investments while looking for ways to generate revenue immediately."

"As the company that builds the infrastructure embedded in telecom equipment, it is always a thrill for Motorola Computer Group to work with a customer, like VDSL Systems, that is pushing the technology edge with equipment that makes a difference in homes and offices," said Paul Virgo, director of product marketing for Motorola Computer Group's telecommunications business. "We see VDSL technology as a successful application in broadband networks and are pleased to support this technology with our hardware/software systems."

Based on two core technologies, IP (Internet Protocol) and VDSL (Very High Speed Digital Subscriber Line), VDSL Systems' equipment is capable of transporting data at unparalleled speeds over ordinary copper telephone lines. With its native IP structure and larger bandwidth capabilities, the company's network products are designed for developing and delivering broadband services over existing copper networks. The modular design of VDSL Systems' equipment, as well as the remote scalability afforded through its IP management tool, means service providers can create flexible networks capable of meeting increasing customer demand.

"Our goal is to deliver access technologies to service providers that will allow them to develop and sell the applications customers are demanding," said Chris Britton, President of VDSL Systems' North American Operations. "Because VDSL Systems' IP hardware was designed for integration into ATM, Ethernet and Optical networks, it offers a smooth migration path to all-IP future networks. Motorola is able to manufacture to our standards for these network products and supports our need for a NEBs compliant platform."

More information about this new technology and detailed diagrams on VDSL technology are available at www.vdslsystems.com or by calling 720/344-4881.

VDSL Technology and VDSL Systems' Equipment

VDSL technology is the next generation of Digital Subscriber Line (DSL) technology, capable of creating the "fattest" communications pipe over traditional copper phone lines and delivering the fastest possible speeds. In order to receive fast Internet, phone and even broadcast services today, a business or consumer needs a phone line, a separate Internet connection and sometimes a cable line, and they are paying separate bills, working with separate vendors, and getting different levels of service.

VDSL Systems enables the creation of a single phone line capable of delivering voice, data and broadcast-quality video. VDSL technology will make it possible to deliver Video On-Demand, or upwards of four separate High Definition Television (HDTV) channels and true real-time videoconferencing to businesses and consumers, in addition to voice and Internet access services, without ever having to alter the communications infrastructure, and all over a single communications line.

About VDSL Systems Inc.

VDSL Systems Inc. is delivering broadband technologies that will create the largest possible communications pipe over traditional copper phone lines, enabling businesses and consumers to receive full-motion video such as HDTV and Video On Demand, in addition to voice communications and Internet access, over a single connection. VDSL Systems is pioneering the industry's first Internet Protocol-based (IP) Very-high-speed Digital Subscriber Line (VDSL) hardware which enable up to 30 times faster data transmission speeds over telephone lines while providing faster scalability and better network management for telecommunications carriers and service providers. The company's flagship iVALO(R) Customer Premise Equipment (CPE) and SpeeDSLAM(TM) for the Central Office (CO) and distributed networks are already in technical trials worldwide. VDSL Systems has dual headquarters in Denver, Colo., and Espoo, Finland.

SpeeDSLAM(TM) and iVALO(TM) are trademarks of VDSL Systems Inc. Other product names mentioned herein are for identification purposes only and may be trademarks and/or registered trademarks of their respective companies.

About Motorola

Motorola Computer Group is a business unit of the Motorola Integrated Electronic Systems Sector (IESS). It is the world's leading supplier of embedded computing platforms for equipment manufacturers in telecommunications, network storage, imaging, medical equipment and semiconductor production and test equipment industries, with core competencies in services and training, design, manufacturing and systems integration capabilities. IESS is a leading provider of advanced electronic products and systems for customers integrating electronics into their products. Motorola IESS solutions provide the brains that make electronic systems simpler, safer, smarter and more synchronized (www.motorola.com/computer).

Motorola, Inc. (NYSE:MOT) is a global leader in providing integrated communications solutions and embedded electronic solutions. Sales in 2000 were $37.6 billion (www.motorola.com).

MOTOROLA and the Stylized M Logo are registered in the U.S. Patent & Trademark Office. All other product or service names are the property of their respective owners. CompactPCI and PICMG are registered trademarks of PICMG-PCI Industrial Computer Manufacturers Group, Inc.(c) Motorola, Inc. 2001.