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Vertel and Hughes Software Systems Team to Deliver Solutions to the Access Market.

WOODLAND HILLS, Calif.--(BUSINESS WIRE)--June 4, 1998--

Jointly Developed V5 Configuration Management Application Will

Be Demonstrated at Supercomm '98, Booth Nos. 861 and 6729

Vertel Corp. (Nasdaq:VRTL), a leading supplier of telecommunications management network (TMN) platforms and development environments, and Hughes Software Systems Ltd. (HSS), a subsidiary of Hughes Network Systems, Thursday announced their intention to jointly develop, market and sell a suite of integrated signaling management systems for the exploding access market.

Vertel and HSS have signed a memorandum of understanding (MOU) that defines the scope and intent of their business alliance.

The initial effort will be to create an integrated solution that facilitates the deployment of V5 Q3-based access and switching products and the deployment of element management applications for fault, configuration, accounting, performance and security (FCAPS) and test and traffic measurement applications.

The solution is based on standard products and will offer professional services from both companies.

V5 is the standard signaling interface for local exchange and access network interconnections. The V5 interface has become a critical market requirement, due to the rapid growth of telecommunications networks and the wide proliferation of various access technologies.

"The access market is one of the hottest segments in communications equipment," said Rob Rich, senior vice president of Telecommunications Research at the Yankee Group. Fueled by increased competition and new broadband technologies, the access equipment market accounted for almost $10 billion in revenue in the U.S. alone and is growing at about 15 percent per year. This is certainly a segment that can benefit from Vertel's TMN experience and HSS' solutions capabilities."

This partnership will serve both companies' strategic objective to deliver complete solutions to telecom equipment manufacturers, network operators and service providers that enable them to quickly and cost effectively integrate and manage new technologies being introduced globally into public networks.

"HSS is dedicated to delivering high-value solutions that enable our telecom customers to strengthen their competitive position," said Arun Kumar, president of Hughes Software Systems. Partnering with Vertel, the market leader in TMN solutions, to reduce the complexity and lower the cost of introducing new technologies and new services strengthens our value proposition and expands our ability to serve the global market."

The move to address the access market represents a step toward implementation of a vertical market strategy for Vertel. The three focus areas are access, broadband and OSS-to-OSS interconnect. Vertel is packaging products and services and forming additional partnerships with market leaders, such as HSS, to deliver solutions to these vertical markets.

Vertel will announce additional plans for the access market next week at Supercomm '98 in Atlanta.

"The partnership we are forming with HSS is an important element in our strategy to bring TMN-based telecom management solutions to the global access market. HSS has industry leading products and a solutions delivery track record, deploying mission critical systems for telecom equipment manufacturers and carriers worldwide," said Bruce Brown, president and chief executive officer of Vertel. HSS' project management and product engineering expertise, and their global presence, complement Vertel's experience in TMN management solutions, partnerships with industry leaders such as HP and Microsoft, our TMN installed base and our distribution partners in the rapidly growing international market."

Vertel and HSS will demonstrate a Q3 Element Management System at Supercomm '98 in Atlanta that will show the ability to configure a V5 signaling interface between the local exchange and the access equipment. The demonstration will be conducted in both the Vertel (No. 861) and HSS (No. 6729) booths.

Hughes Software Systems Ltd.

Hughes Software Systems Ltd. specializes in the development of software solutions, products and services for data communications, telecommunications and Internet applications. HSS' products and services for the advanced telecommunications market include Advanced Intelligent Networks (AIN), Telecom Protocol Stacks (V5.2, VB5, SS7, INAP) and Mediation Device Systems.

For more information, visit the HSS Web site at http://www.hssworld.com.

Vertel Corp.

Vertel develops and markets software for the management and operations of telecommunications networks. The company provides advanced telecommunications management network (TMN) solutions including communications infrastructure products, network management platforms and applications software for telecommunication carrier networks worldwide.

In addition, Vertel serves telecommunications equipment manufacturers, computer-systems OEMs and Internet access providers. The Company is based in Woodland Hills, Calif. and has sales offices throughout the world. Contact Vertel on the World Wide Web at http://www.vertel.com.

"Safe-harbor" statements under the Private Securities Litigation Reform Act of 1995: Except for the historical information presented, the matters discussed in this news release are forward-looking statements that involve risks and uncertainties, including timely development, introduction and success of new and enhanced products in existing and new markets, the acceptance of new technologies, the impact of competitive products, pricing, currency exchange risks, governmental and regulatory developments including Vertel, HSS and their partners, and other risks detailed from time to time in public disclosure filings with the U.S. Securities and Exchange Commission (SEC) by Vertel. -0-

NOTE TO EDITORS: Vertel is a registered trademark of Vertel. All other trademarks are the property of their respective owners.

CONTACT: Vertel Corp., Woodland Hills

Vicki Vaughn, 818/227-1456

vicki-vaughn@vertel.com

or

Hughes Network Systems, Germantown, Md.

Gail Armstrong, 301/601-4185

garmstrong@hns.com
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