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Technology Stocks : NHC COMMUNICATIONS (TSE:NHC) acquiring THE FIBER COMPANY

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To: Lalit Jain who wrote (86)1/13/2000 5:56:00 PM
From: Lalit Jain   of 856
 
NHC Communications Inc., announced that it has completed its corporate re-engineering program
and is staking out a position as a niche leader in the exploding DSL market.

Initiated last August, Corporate Mission 2000 has re-engineered every aspect of NHC's operations,
in line with its ongoing move away from legacy connectivity and towards value-added switching
solutions. Today, with the announcement of a significant purchase order from one of the top 10
Competitive Local Exchange Carriers (CLECs) in the US, NHC is poised to penetrate the
telecommunications market with its innovative VCCST(TM) Solution, which facilitates DSL test
access and deployment, enabling telecommunications carriers to cost-effectively deliver high
bandwidth to the business or residential user.

"With Corporate Mission 2000, we have re-focused every part of our operations on the
high-growth telecommunications market. Our sales staff has been trained and re-deployed, our
marketing staff has been re-aligned, and our research and development efforts are turned towards
the development of new solutions for the DSL market", said Sylvain Abitbol, President and Chief
Executive Officer of NHC. "The telecommunications market - and especially DSL deployment - is
exploding, and NHC is committed to leveraging its know-how to capitalize on that business
opportunity."

By streamlining operations, lowering operating costs and re-focusing the company, Corporate
Mission 2000 has made NHC into a leaner, more nimble, more flexible company, positioned to
grow and evolve with the DSL market.

"The Internet is the business of the future, and telecommunications companies are striving for
solutions to deliver an enhanced Internet experience to the user. NHC is committed to providing
telcos with those solutions", said Ralph Benatar, Chief Operating Officer and Chief Financial
Officer of NHC.

NHC Communications Inc. specializes in developing products that increase the competitive edge
of its customers by applying innovative technology to the delivery of high-speed mixed media
networks. NHC is committed to its customers by delivering superior solutions for physical layer
network infrastructures.

Backgrounder: NHC's VCCS(TM) Solution

THE TELECOM CHALLENGE -

DELIVERING COST-EFFECTIVE HIGH BANDWIDTH TO THE USER

The Internet explosion has created a wealth of opportunity for telecommunications companies.
However, in order to capitalize on that opportunity, telcos must solve a key issue: how to deliver
leading-edge, high-bandwidth Internet content and applications to users, cost-effectively.

Increasingly, DSL (Digital Subscriber Line) is the preferred technology for bringing
high-bandwidth information to both the residential and corporate enterprise markets over existing
copper telephone lines. DSL combines cost-effectiveness and high performance, making it the
ideal solution for CLECs, ILECs (Incumbent Local Exchange Carriers) and other telecom players.
The installation of DSL service lines began in 1998 and is expected to continue at a greatly
increased pace. IDC projects the North American DSL market is expected to attain more than 4
million lines by 2002, and Frost & Sullivan estimates that the revenues for DSL equipment will
grow to $1.7 billion by 2003.

But the biggest hurdle is that deployment is difficult, expensive and labour-intensive. DSL
networks require more automation and remote monitoring, resulting in high costs and provisioning
delays.

VIRTUAL CROSS CONNECT SYSTEM (VCCS(TM)) - THE MARKET SOLUTION

NHC's Virtual Cross Connect System (VCCS(TM)) is an innovative test access and deployment
solution for service providers such as CLECs who want to take full advantage of the DSL
solution. With VCCS(TM), CLECs can rapidly, cost effectively and remotely connect third-party
test equipment and deploy a broad range of high-speed DSL services, streamlining operating costs
associated with DSL loop qualification and service deployment by eliminating truck rolls and
service time.

In addition to minimizing service cost by completely automating the testing and service
deployment process at the physical layer, NHC's VCCS(TM) Solution delivers:

- Remote management capability for CLEC equipment collocated at

the ILEC central office, eliminating recurring charges

associated with entering the collocation cage

- Instant provisioning of DSL services, minimizing service

downtime and truck rolls while increasing the service provider's

revenues

- A protocol-independent design that offers end-to-end network

transparency, providing management across multiple technologies

(ADSL, IDSL, G-Lite, ISDN, Frame Relay, Fractional T1 and E1, T1

and E1)

- The ability to interface and operate with third party test

equipment, facilitating integration within the collocation site.

For the past 10 years, NHC has been in the business of providing integrated network switching
solutions at the physical layer. Today, NHC is leveraging that know-how into a niche leadership
position in the rapidly-expanding DSL market. TOLL FREE: 1-800-361-1965 Sylvain Abitbol,
President & CEO FAX: (514) 735-8057

Sylvain Brossard, VP Finances &

Operations Internet: pr@nhc.com

s.brossard@nhc.com Web Site: www.nhc.com

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