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Technology Stocks : Conductus (NASDAQ: CDTS) superconductors

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To: John Finley who wrote (224)2/23/2000 9:41:00 AM
From: Jack Kunkle  Read Replies (1) of 352
 
Headline: Conductus ClearSite(R) System Dramatically Improves Performance in CDMA Field Trial

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First CDMA Trial Results Exceed Predicted Outcome

SUNNYVALE, Calif., Feb. 23 /PRNewswire/ -- Conductus, Inc. (NASDAQ:CDTS),a leading manufacturer of superconducting wireless systems, announced today that the first field trial of its ClearSite(R) system at a CDMA cell site demonstrated dramatic improvement in base station performance. The testing showed that the ClearSite system can increase cell site coverage area by as
much as 50 times (5000%) and can increase capacity by a comparably large amount when strong interfering radio frequency (RF) signals are present. Without the filtering provided by the ClearSite system, the presence of strong interferers caused the coverage area to be reduced by more than 98 percent, representing a virtual collapse of the cell site.
By dramatically expanding the coverage area and capacity of cell sites, Conductus' ClearSite system could significantly increase annual revenue to urban and suburban CDMA sites and result in paybacks of less than a year for the equipment. In cell sites in particularly dense RF environments where such interfering signals could be present most of the time, the revenue increases would be even greater.
In these tests, interfering signals of known magnitude and frequency, comparable to those observed from competing cellular carriers, were generated in order to obtain reproducible results. Conventional filters failed to remove these interfering signals, but the ClearSite system successfully filtered them out, resulting in the dramatic improvements noted above.
"We are pleased to report that our new ClearSite system performed so well in this first of several CDMA field trials and showed better results than predicted by our engineering models," commented James P. Simmons, Jr., Vice President, Marketing and Sales for Conductus. "We believe that our highly selective, compact, reliable ClearSite system is the most advanced thin-film
superconductor system in production. Major carriers agree that superconducting wireless systems must have four characteristics before they will be widely deployed in their digital networks: outstanding RF performance (RF filter sharpness and system noise figure), high reliability, compact size and a clear upgrade path to future digital wireless technologies (2G, 2.5G, 3G). Compared to competing superconducting wireless systems or conventional technology
systems, we believe only ClearSite systems have all of these."
Conductus' ClearSite systems offer outstanding performance in a practical, easily deployed package. The ClearSite systems dramatic results are delivered in a compact, 19-inch rack-mount platform of less than 2.5 cubic feet, while many competing products require three to five times this volume. Since CDMA networks are being deployed in urban and suburban areas where there is a premium on space, many of these CDMA cell sites are located in shelters where room for additional equipment is scarce. As a result, both RF performance and
physical size will be important selection criteria for wireless operating companies in deciding which products to deploy in their networks. ClearSite systems combine this very high performance and reliability in a very small package.
Commenting further on the superconducting industry, Simmons added,
"Throughout our over twelve-year history Conductus, like other vendors, has had to make crucial, defining choices in superconducting material, substrate, operating temperature, coolers, design techniques and fabrication process technology. These choices define a technological direction that after many years and tens of millions of dollars of development is very difficult to change. In each case, Conductus has chosen the highest performance technology.
As a result, we believe that ClearSite systems meet all the requirements for wide deployability and have a significant competitive advantage.
"Many industry experts have predicted that CDMA networks would be the most interference-prone among the digital protocols," continued Simmons. "Our RF models predict that our systems can provide even greater benefits for CDMA networks than for TDMA. This trial has now validated these predictions. Furthermore, the major 3G world standards are expected to be an extension of CDMA called wideband CDMA. Our RF modeling also indicates that our filter technology can provide very large performance benefits for 3G networks.
According to Paine Webber, while 18% of the world's wireless subscribers today use CDMA technology, by the end of this decade 85% of the world's wireless subscribers will use CDMA technology."
During the past year traffic on wireless networks has greatly increased, resulting in coverage, radio frequency (RF) interference and capacity problems in current generation, digital (2G) wireless networks. Many industry experts predict these problems will get worse as new higher bandwidth (2.5G and 3G) wireless Internet services become available. ClearSite superconducting wireless systems can expand coverage, reduce interference, and increase capacity for analog (1G), digital (2G), and next generation high bandwidth
digital (2.5G and 3G) wireless networks. In previous field trials ClearSite systems have increased cell site minutes of use and thus revenues by 30% to more than 50% in coverage applications for 1G and 2G networks, and have increased capacity at 2G networks by 80%.

About Conductus
Conductus, Inc., founded in 1987 and based in Sunnyvale, California,
develops, manufactures and markets electronic components and systems based on
superconductors for applications in the worldwide telecommunications market.
For many applications, the unique properties of superconductors offer
significant performance advantages over products based on conventional copper
electronic components. These advantages can provide improved price/performance
at the system level because of enhanced sensitivity and efficiency as well as
reduced size and weight. Press announcements and other information about
Conductus are available online at conductus.com.
The statements contained in this press release that are not purely
historical are forward-looking statements within the meaning of Section 21E of
the Securities and Exchange Act of 1934, including statements regarding
Conductus' expectations, beliefs, hopes, intentions, or strategies regarding
the future. Forward-looking statements include statements regarding future
sales, product introduction and acceptance, market acceptance and financial
stability. Conductus' actual results and the timing of certain events may
differ significantly from the results discussed in the forward-looking
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