Zaffire, Foundry Networks and UTStarcom Team to Deliver Breakthrough Metro Broadband IP Solutions; Companies Successfully Test Interoperability of System.

Business Editors

SAN JOSE, Calif.--(BUSINESS WIRE)--Jan. 17, 2001

Metropolitan optical networking provider Zaffire(TM), Inc., Foundry Networks(R), Inc. (NASDAQ:FDRY), a performance and total solutions leader for end-to-end switching and routing solutions, and UTStarcom, Inc. (NASDAQ:UTSI), a leading provider of Softswitch and wired/wireless access networks, today announced a collaboration that enables broadband IP transport over dense wave division multiplexing (DWDM) optical systems.

Connecting Foundry's BigIron(R) Layer 3 Gigabit Ethernet switches and NetIron(R) Internet routers to the Zaffire Z3000(TM) optical service platform allows telecommunications service providers to offer one of the industry's first Gigabit Ethernet services over DWDM in metro and regional-area networks.

"Foundry, Zaffire and UTStarcom together can provide a complete solution for next-generation telecommunications networks," said Hong Lu, president and chief executive officer, UTStarcom. "Zaffire offers the best metro DWDM solution, and Foundry has the most comprehensive line of high-performance broadband IP routers and switches. They are an integral part of our WACOS Softswitch solution, which provides IP-based multi-service telecom switching for wired and wireless telephony services. IP over DWDM technology revolutionizes the access network by simplifying topologies while providing scalability and reliability at a lower cost."

UTStarcom is partnering with both Zaffire and Foundry to provide a complete IP-based solution to its carrier customers in the Asian markets such as China. UTStarcom recently deployed the joint solution in a major metropolitan area in China.

"Zaffire and Foundry have rigorously tested the interoperability of this breakthrough metro solution," added Bobby Johnson, president and CEO of Foundry Networks. "We are excited to see the enthusiastic reception of this powerful solution by the emerging metro service providers."

Service providers deploying the combined Zaffire-Foundry solution can provision end-to-end, error-free, high-bandwidth IP traffic. The integrated Zaffire-Foundry system carries straight packet-over-DWDM traffic, allowing Gigabit Ethernet traffic to go directly over wavelengths. Use of Zaffire's digital wrapper technology allows the DWDM layer to offer SONET-quality protection and network management capabilities without the use of SONET equipment. In addition, the integrated Zaffire-Foundry solution can also transmit Internet traffic in the form of Packet Over SONET (POS)-over-DWDM. Service providers can thus offer high-speed, low-cost, reliable and highly scalable IP service to their corporate customers in the metro and regional areas.

"By collaborating with Foundry, we combine two best-of-breed solutions which permit unprecedented bandwidth and flexibility over metro and regional networks," said Zaffire chief executive officer, James Fultz. "Zaffire's goal is to continue to drive down costs and simultaneously improve performance of current metro and regional networks."

About Foundry Networks

Foundry Networks, Inc. (NASDAQ:FDRY) is a performance and total solutions leader for end-to-end switching and routing including Internet routers, Layer 2/3 LAN switches, and Layer 4-7 Internet traffic and content delivery switches. Foundry's 3,000+ customers include the world's premier ISPs and enterprises, portals, search engines, e-commerce sites, and universities along with the leading entertainment, pharmaceutical, government, financial, and manufacturing companies. Some of these customers include: AOL (NYSE: AOL), EarthLink (NASDAQ:ELNK), AT&T WorldNet, MSN, and Cable & Wireless (NYSE:CWP), Yahoo! (NASDAQ:YHOO), Incyte Genomics, Inc. (NASDAQ:INCY), The University of Washington, University of Miami, LucasFilm, U.S. Army, Air Force and Navy, NASA and NIH. For more information about the company and its products, call 888/TURBO-LAN or visit www.foundrynetworks.com.

About Zaffire

Zaffire, Inc. is a high-technology company focused on developing a next-generation, optical services networking system for service providers worldwide. Zaffire's breakthrough optical technologies have been well received by new-generation carriers, CLECs, RBOCs, and IXCs. Designed specifically for deployment in metro and regional-area networks, the Zaffire Advanced Optical Services Network Architecture gives service providers a new level of transport control over existing and emerging data, circuit, and lambda services. The solution also significantly reduces the total cost of ownership and provides service providers with a high level of flexibility to price and deliver differentiated service offerings. For more information, see www.zaffire.com.

Zaffire is a technology investment partner of MRV Communications, Inc. (NASDAQ:MRVC). For more information, visit www.mrv.com.

About UTStarcom, Inc.

UTStarcom designs, sells, manufactures and installs an integrated suite of wireless and wireline network access and switching systems that allow communications service providers to offer efficient and scalable voice, data and Internet access services. The Company's customers are public telecommunications service providers that operate wireless and wireline voice and data networks in rapidly growing communications markets around the world. Current product offerings include:

-- PASTM, which provides voice and data services over city-wide mobile wireless
networks;

-- AN-2000, a broadband and narrowband access system for wireline networks;

-- WACOS, an IP-based SoftSwitch platform designed to deliver voice and data
services using a highly distributed architecture. WACOS contains a SoftSwitch
call server, a distributed multi-service IP gateway and a full suite of
subscriber management, mediation and billing services.

The Company manufactures the majority of its products at two ISO9002 certified facilities located in China, and maintains sales and customer support sites throughout Mainland China and in Iselin, NJ; Alameda, CA; Miami, FL; Taipei, Taiwan; Hong Kong; and Tel Aviv, Israel. UTStarcom's research and development facilities are located in the USA and China.

UTStarcom was founded in 1991 and is headquartered in Alameda, California. For more information about UTStarcom, visit the Company's Web site at www.utstar.com.

This release may contain forward-looking statements that involve risks and uncertainties. These statements may differ materially from actual future events or results. Readers are referred to the documents filed by MRV with the Securities and Exchange Commission, specifically the most recent reports on Forms 10K and 10Q, and as amended, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements, including potential fluctuations in operating results, dependence on new product developments, rapid technological and market changes, manufacturing risks, volatility of the company's stock price, financial risk management, and future growth subject to risks. The announcement of the anticipated filing of any registration statements contained herein does not constitute an offer of any securities for sale.

Foundry Networks, BigIron and NetIron are registered trademarks of Foundry Networks, Inc. Zaffire, Z3000, Z-Manager and ZOS are trademarks of Zaffire, Inc. PAS, AN-2000, WACOS and the UTStarcom name and logo are trademarks of UTStarcom, Inc. and its subsidiaries. All other trademarks are the sole property of their respective holders.