Xtend Networks' DOCSIS-Compatible Extended Frequency System Targeted For Deployment To Small And Medium Business Market.

Business Editors/High-Tech Writers

BroadBand Plus 2002

Booth #3929

ANAHEIM, Calif.--(BUSINESS WIRE)--Dec. 4, 2002

Xtend Networks Ltd., a company engaged in the development of cost-efficient broadband-solutions for the Cable TV industry in the United States and internationally, announced today the first DOCSIS based extended frequency system for deployment to the small and medium business market.

The solution, which is designed to help cable system operators meet the bandwidth needs of the business community without costly fiber rebuilds, uses Xtend Networks' open architecture solution to expand "last mile" capacity by more than 400%. The solution is being demonstrated at the Xtend Networks booth, #3929, at Broadband Plus/The New Western Show Dec. 4-6 in Anaheim, CA.

"Cable system operators have invested extensively in a backbone and regional infrastructure that can meet the needs of the business world, but there remains a tremendous bottleneck in last-mile capacity," said Dr. Hillel Weinstein, co-founder and CEO. "Small to medium businesses require secure, reliable downstream AND upstream connections, at speeds ranging from 1.5-10Mbps. MSOs simply are unable to tap those revenue streams, given the configuration of today's physical plant."

The Xtend solution (patent pending) enables operators to expand last-mile bandwidth to up to 3 GHz, through the addition of unique broadband amplifiers, passive elements and RF control units to the existing standard network. Moreover, the system is compatible with the DOCSIS standard, ensuring the existence of security and management layers that are important to commercial subscribers.

DOCSIS also enables MSOs to leverage existing proven infrastructure into the SMB market.

Xtend Networks offers operators increased bi-directional bandwidth through the deployment of an interface (the "XHUB") at the fiber node and bypass electronics ("Xtendifiers(R)") and passive elements in the "last mile" of the coax plant.

The XHUB converts the standard frequency of the HFC network to the extended bands of the coax plant; Xtendifiers are installed parallel to existing line extenders as amplification and gain control devices. The XTB, a unit located at the customer premises, reverses the XHUB conversion activity and connects directly to existing cable modems and set-top boxes.

Xtend's open-architecture methodology enables it to comply with all evolving standards, including DOCSIS 1.0, DOCSIS 1.1, DVB-C, DVB-S and IP.

"Our Xtend technology offers operators the ability to offer the small and medium business market the services they need without the complexity and costs of construction and changes in network topology that are necessary for alternative solutions," said Zeev Orbach, chief technology officer for Xtend Networks. "What's equally important is that future applications and modulators can be seamlessly added as cable operators expand their roles in delivering advance services to the business community."

About Xtend Networks

Xtend Networks Ltd. is an infrastructure company providing cost-efficient, novel solutions expanding the existing constrained bandwidth of cable TV up to 3GHz. Xtend Networks was founded and is led by Dr. Hillel Weinstein (PhD EE) and Zeev Orbach.

Dr. Weinstein is a prolific inventor and experienced executive in the hi-tech industry, and is the inventor of U.S. Patent (No. 3,491,199), the first granted for the multiplexing of data over operating TV channels (Teletext). Mr. Orbach is a leading electronics expert with vast experience in cable TV development and operations.

Xtend Networks has secured initial funding from Giza GE Venture Capital and Syntek Capital AG. For more information, please visit www.xtendnetworks.com.