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Motorola's CableComm Project Rolls Out with Coherent.

LEESBURG, Va.--(BUSINESS WIRE)--Nov. 12, 1996--Coherent Communications Systems Corporation (NASDAQ: CCSC) of Leesburg, Va., has shipped the first 200 integrated, state of the art echo cancellers which have been designed specifically for Motorola's CableComm System. Coherent has succeeded in designing and manufacturing the high performance system in just 6 months from start to finish.

The complex project involved Coherent condensing the greatest amount of channel-handling yet into a single board, in order to utilize the high bandwidth available on cable. Coherent's integrated canceller for Motorola handles 192 channels of cancellation on one board, using 64K/bit technology for optimum performance, without any compression. Motorola's aim is to offer a high performance hardware platform for the distribution of interactive services over the cable TV network. Users will be able to access high quality multimedia services, including telephony, videophone, and high speed data services, via this cable-based information superhighway. Motorola has already initiated a number of test trials around the US, with an aggressive expansion policy set to commence during the remainder of 1996.

Coherent's President and Chief Operating Officer, David Powell, is pleased with the company's achievement, accomplishing a challenging task within a very short space of time: "A project such as this underlines Coherent's ability to produce innovative solutions within very tight timeframes - showing a degree of responsiveness which is crucial for new services in the competitive global telecommunications arena. Motorola's decision to work with us is very gratifying, highlighting our international reputation for product excellence and support. Cable-based networks represent one of many new and exciting systems which will make their presence felt in a major way in the future - it is exhilarating to be breaking into new territory with Motorola on this project."

Quality was a key issue for Motorola, focusing closely on Coherent's ability to meet its tight timeframes and deliver a unique, high quality product. The R&D teams from both companies have worked very closely together, involving extensive testing of Coherent's initial designs earlier this year over Motorola's network simulators. Motorola's measurements focused closely on sound quality, voice quality, speed and convergence performance, as well as the hardware-associated issue of the board integration itself. Mr. Morton Stern, VP and Director of Cable Telephone Products, elaborates:

"We identified voice quality from the very outset as being the key to the future success of our system, and have been very impressed at Coherent's understanding of our needs throughout this enterprise. Our trials have verified that, with the integrated canceller, our system is able to adapt very swiftly to changing network conditions, ensuring that our customers receive the best possible voice quality right from the start of every call."

Coherent Communications Systems Corporation is a worldwide leader in state of the art voice enhancement technology, spanning echo cancellation platforms and associated network software. The Company's products are used globally by major commercial telecommunications companies and network operators, including AT&T Wireless, Cellular One, British Telecom, Nokia, NORTEL, Telia, Mercury, Cable & Wireless, Telmex, Cisco Systems, Deutsche Telekom and France Telecom among the extensive list. Coherent is a fully accredited ISO 9001 company, dedicated to maintaining the highest quality standards at every level.

Also available via Coherent's Web Page: http://www.coherent.com

This news release contains forward looking statements, including statements of the Company's sales and marketing expectations, that involve risks and uncertainties associated with intense competition, variations in market growth, lack of customer acceptance, timely availability of raw and produced materials, and competitive pricing of products as well as other risks detailed in the Company's SEC reports.

CONTACT: Coherent Communications Systems Corp.

Diane McClelland, 703/724-7311

or

Garrett Axford

Georgina Garrett, 44-(0)-1273-441200

E-mail: dmcclelland@coherent.com
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Copyright 1996, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Date:Nov 12, 1996
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