Winstar Selects Siemens to Deploy Comprehensive Broadband Solution for Small & Medium-Sized Commercial Office Buildings.

Business Editors

NEW YORK--(BUSINESS WIRE)--Dec. 15, 2000

WINSTAR COMMUNICATIONS, INC. (NASDAQ: WCII), a leading broadband services company, today announced that it has selected Siemens Carrier Networks, LLC, a subsidiary of Siemens Information and Communications Networks, Inc. to deploy Siemens' Quickstream(TM), a comprehensive last-mile broadband solution that is ideal for small to mid-sized commercial office buildings connected to Winstar's end-to-end broadband network. Under the terms of this agreement, Winstar has committed to the purchase of $150 million in equipment and services over two years to support the deployment of the Quickstream solution.

Siemens Quickstream enables Winstar to seamlessly integrate point-to-multipoint (PMP) radio equipment from Siemens and P-Com, Inc., together with an enhanced Voice Over DSL (VoDSL) in-building broadband network platform from Accelerated Networks. With this new, dynamic last-mile broadband configuration, Winstar increases the speed and efficiency with which it can provision new on-net customers in select buildings and deliver a complete set of broadband services. Winstar will deploy Quickstream(TM) in thousands of commercial office buildings across the U.S.

"Our relationship with Winstar represents a unique approach to broadband network development," said Tony Maher, president and chief executive officer of Siemens Information and Communication Networks, Inc. "Quickstream is the cornerstone of a world-class systems integration concept that helps broadband service providers optimize the value of their networks. With this solution, we are able to enhance the functionality and overall performance of Winstar's broadband network. We look forward to working together with Winstar to integrate our unique broadband access capabilities and give businesses a competitive edge in local markets nationwide."

"In deploying our last-mile broadband infrastructure, Winstar is committed to selecting the technology solutions that best meet the broadband needs of our customers," said Nathan Kantor, president and chief operating office of Winstar. "Siemens' Quickstream gives us another tool in our network portfolio and fundamentally supports our strategy of partnering with market leaders to deploy best-of-breed equipment and technology. With this converged network architecture in place, on-net customers in small and mid-sized buildings will immediately benefit from the increased efficiency and reliability that this solution provides."

By utilizing several broadband technologies, including fiber, point-to-point fixed wireless and point-to-multipoint fixed wireless, Winstar can select from a variety of last-mile broadband network configurations. While point-to-point technology is the ideal broadband fixed wireless solution for large buildings with higher bandwidth customers, point-to-multipoint allows Winstar to more efficiently and cost-effectively reach the smaller end of the commercial business marketplace.

The Quickstream(TM) products provided by Accelerated Networks include integrated access devices (IADs) for customer premises, multi-service access platforms (MSAPs) for central offices and concentrators for switching facilities on Winstar's broadband network. With the deployment of Quickstream(TM), Winstar's broadband network will include the following features -

- Accelerated Networks' ATM-based IADs, which are connected - via in-building
links - to its MSAP maximum transmission unit (MTU) concentrators and which
perform the local switching functionality, and aggregate all of Winstar's
subscriber traffic onto a single, high-speed ATM connection.

- Accelerated Networks' MSAP voice gateways, which are located at central
office locations and connect Winstar's broadband network to its installed base
of switches, delivering all of the Class 5 voice/centrex features to the
customer-based IADs.

- Accelerated Networks' ATM switches, which are also located at central office
locations and are connected to Winstar's IP backbone, delivering multiple
services to the customer IAD, including high-speed Internet, frame-relay and
packetized voice.

Winstar will deliver all of these services over in-building wiring using symmetrical digital subscriber line (SDSL) technology.

As part of the Quickstream(TM) solution, Siemens and Accelerated Networks will also provide a portfolio of professional services to support deployment. Siemens will manage the installation of its point-to-multipoint radio equipment and Accelerated Networks' AccessPILOT Element Management System (EMS) will manage all aspects of the access infrastructure while providing interfaces to provisioning, billing and troubleshooting applications within Winstar's broadband network.

This agreement is the latest development in an ongoing strategic relationship between Winstar and Siemens, which began in 1997 with Winstar's purchase of point-to-multipoint fixed wireless equipment from Siemens. This relationship was recently enhanced with Siemens' participation in the expansion of Winstar's senior credit facility, which was part of $1.02 billion in financing transactions that Winstar announced last month.

About Siemens Information and Communication

Siemens Information and Communication Networks, Inc., is part of Siemens AG, one of the world's largest electrical engineering and electronics companies. Siemens AG, headquartered in Berlin and Munich, Germany, is a leading global electrical engineering and electronics company, employing over 447,000 people in 193 countries, with sales in excess of $82 billion worldwide in fiscal 2000.

The U.S. is the largest market for Siemens globally. In the U.S., Siemens employs over 73,000 employees and achieved sales of more than $18.1 billion in fiscal 2000. Siemens' U.S. businesses are leaders in the information and communication, healthcare, energy, industry, financial services, transportation, and lighting sectors. Based in Boca Raton, Fl., Siemens Information and Communication Networks, Inc., with its subsidiaries Siemens Carrier Networks LLC, Siemens Enterprise Networks LLC and Optisphere Networks Inc. is a leading provider of integrated voice and data networks and solutions for enterprises, carriers and service providers.

Siemens is a registered trademark of Siemens AG. Quickstream is a trademark of Siemens Information and Communication Networks, Inc. For more information, visit the company's Web site at http://www.icn.siemens.com. For Siemens product information, call 800-814-1680.

About Winstar

Winstar is a leading broadband services company. The company is rapidly building one of the world's most widely available, end-to-end broadband networks. Winstar makes this network important and useful to businesses by providing a comprehensive set of high-quality, digital-age broadband services. These services include high-speed Internet and data, Web hosting and design, phone services, Web-based applications, e-commerce, professional services and Office.com(R), A Service From Winstar, the top-ranked online business service for small and medium-sized businesses.

For more information, visit www.winstar.com.

This release contains forward-looking information about management expectations, strategic objectives, business prospects, anticipated financial or operational performance, and other similar matters. These statements are based on current expectations, forecasts and assumptions that involve important risks and uncertainties. A variety of factors, many of which are beyond Winstar's control, could cause actual results and experience to differ materially from the expectations expressed in these statements. These factors include, but are not limited to, volatility in the financial and capital markets, actions and initiatives by current and potential competitors, events or circumstances impacting major customers or suppliers, the effect of current and future legislation or regulation, the ability of the company to design and construct its broadband network and to sell and provision services, and additional factors described in the reports filed by Winstar with the Securities and Exchange Commission (SEC), including Winstar's Annual Report on Form 10-K for the year ended December 31, 1999, which is available on the SEC's Web site, at www.sec.gov. Winstar undertakes no responsibility to update or revise any statements in this presentation, whether as a result of new information, future events or otherwise.

Winstar and Office.com are registered trademarks of Winstar Communications, Inc.