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TERN : TERAYON COMMUNICATIONS SYS (NASDAQ)
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Terayon Acquisition of Radwiz Brings IP Network Routing for Cable & xDSL
Acquisition Expands Terayon's Broadband Access Portfolio to SOHO Market
SANTA CLARA, Calif.--(BUSINESS WIRE)--Oct. 12, 1999--Terayon Communication Systems Inc. (Nasdaq: TERN) today announced a definitive agreement to acquire Radwiz Ltd.
Terayon, a leading supplier of broadband access systems, plans to acquire Radwiz, a privately held company that produces broadband access systems that provide IP (Internet Protocol) network routing for the SOHO (Small Office/Home Office) market. This expertise allows Terayon to expand its broadband capabilities over cable, and to enter the xDSL (Digital Subscriber Line) market, with high-speed services over the copper telephony infrastructure. This acquisition contributes to Terayon's efforts to build a common multimedia platform to deliver current and advanced broadband services.
Radwiz produces communications access systems based on high-speed IP routing, integrated with telephony. Their innovative systems include both central office DSLAMs (Digital Subscriber Line Access Multiplexers) and customer premises equipment for SOHO business broadband services. Acquiring Radwiz will expedite Terayon's delivery of IP-based telephony solutions, with emphasis on the high-growth SOHO business market.
Terayon CEO Zaki Rakib stated, "The Radwiz acquisition further extends Terayon's market reach with innovative IP-based routing systems for the SOHO market. This provides us with voice-over-IP expertise to expand our capabilities for the broadband cable market, and an entry into the xDSL market. We are excited by the new broadband vistas that are opened by this strategic acquisition."
Adoram Gaash, President and founder of Radwiz, stated, "This is a turning point for Radwiz, as we join forces with Terayon, with its management expertise and strong resources. Our IP routing and xDSL technology, combined with Terayon's market presence provides a strong entry into the high-growth broadband voice and data markets."
The Radwiz acquisition expands Terayon's broadband product portfolio to include sophisticated IP routing technology for voice and data applications. Radwiz' systems include SOHO business-class products for both central office management and the customer premises. Their systems deliver high-capacity, symmetric voice and data services to the business market, with high-density port aggregation at the central office side for maximum cost efficiency. The acquisition of Radwiz is an important piece in Terayon's strategy to assemble complementary technologies for the delivery of broadband voice, data and video. The company anticipates strong synergy between Radwiz's IP expertise, combined with Terayon's recent acquisitions of Telegate (broadband telephony) and Imedia (digital video re-multiplexing).
The Radwiz acquisition will be accounted for as a purchase. Terayon's acquisition of Radwiz, which is valued at approximately $50 million in stock plus transaction costs, is expected to close this quarter.
Terayon's systems are deployed by leading cable operators, including Time Warner and Cox Communications in the U.S.; Rogers Cablesystems and Shaw Communications in Canada; UPC (United Pan-Europe Communications) in Europe; Jupiter Telecommunications in Japan; and Globocabo/NET Brasil in Latin America.
Terayon offers two lines of cable modem systems, one based on S-CDMA technology and the other CableLabs(R) Certified(tm) to meet the DOCSIS (Data Over Cable System Interface Specification) cable modem standard. Each system's high capacity and reliability enable cable operators to offer a broad range of residential and commercial data services across cable plants, ranging from all coaxial to HFC (hybrid fiber-coax). Complementing its proven data systems, Terayon's advanced CherryPicker(tm) digital video systems give operators unprecedented flexibility in assembling customized television programming line-ups from multiple sources.
Terayon Communication Systems provides cable television operators with broadband communication systems for delivering advanced data, voice and video services. The company's cable modem systems and advanced digital video systems are deployed by leading cable operators worldwide. Terayon, based in Santa Clara, Calif., USA, has sales and support offices worldwide, and is traded on the Nasdaq under the symbol TERN. Terayon can be found on the Web at www.terayon.com.
Radwiz, founded in 1997, is a pioneer in developing solutions on the datacom-telecom technology edge. The company has a vision of ubiquitous, inexpensive, high-quality access to the new world of integrated telephony and data over xDSL, which is the foundation of its technology and product development and its market focus. Radwiz offers complete access systems that add real value to both carriers and private networks, including wideband IP/IPX connection, multiple Carrier Class phone/fax lines, Quality of Service and Bandwidth End-To-End control and Voice over Cell/Packet.
"Safe Harbor" Statements under the Private Securities Litigation Reform Act of 1995: Except for the historical information contained herein, this news release contains forward-looking statements, estimates and assumptions by the Company and other parties that involve risks and uncertainties, including the Company's ability to gain new business, the expansion of operations by the Company's customers and the deployment of the Company's products in specific markets, as well as the other risks detailed from time to time in the Company's filings with the SEC.
Note: Terayon, the Terayon logo, TeraPro, TeraLink and TeraComm are registered trademarks of Terayon Communication Systems Inc. TeraView and CherryPicker are trademarks of Terayon Communication Systems Inc. All other trademarks are property of their respective owners.
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Contact:
Terayon Communication Systems
Investor Contact:
Ray M. Fritz, 408/919-5806
email: rfritz@terayon.com
or
Press Contacts:
John Hamburger, 408/486-5273
email: johnh@terayon.com
or
John Giddings, 408/486-5223
email: jgiddings@terayon.com
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