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Amati Clears Erroneous Facts Published Today; Licensing Issues Misrepresented In Recent Reports
SAN JOSE, Calif.--(BUSINESS WIRE)--June 21, 1996--Amati Communications Corporation (NASDAQ: AMTX), released the following information to attempt to clear some published erroneous reports.
Amati Communications does not license any technology from the former AT&T Paradyne. In fact, Amati holds the patent rights for the standard technology basis of the ADSL service known as Discrete Multi-Tone (DMT). Companies that are developing standard ADSL products license their technology from Amati. Motorola and Northern Telecom are among the companies that have licensed the Amati technology.
The value of ADSL is based on its future potential, but certain facts are true: there are no ADSL services existing today; the potential for high speed data access using ADSL is high but depends on telco and service provider implementation of those services, Amati is the developer of the T1.413 standard for ADSL which is the Discrete Multi-Tone technology, DMT; AT&T Paradyne only offers a non-standard, proprietary version of technology and has yet to be able to deliver any standard compliant products or technology; and Westell, also mentioned in the reports, has announced availability of both Paradyne non-standard and DMT-standard products for future installations.DMT is a unique technology that enhances ADSL by providing the ability to move signals at up to 8 Mbps or greater over existing telephone lines.
DMT was chosen as the ADSL standard by ANSI and ETSI three years ago, following head-to-head competition with an alternative approach called CAP in lab tests by Bellcore. DMT offers several key advantages over the proprietary solutions: higher performance (it can carry more data at longer lengths), higher immunity to noise on the copper loop (permitting more robust service offering with less manual intervention), and rate adaptation (the data rate delivered to any given customer is automatically adapted to the distance and line quality ensuring optimum performance at all times).
Currently, more than a dozen different telephone company field trials are based on the Amati products designed with the DMT technology. The products include: the Overture 4 ADSL/DMT modem capable of up to 4 Mbps downstream and 160 Kbps upstream and the Overture 8 ADSL/DMT Modem capable of the fastest ADSL service available today at 8 Mbps downstream and 640 Kbps upstream. Amati Communications Corporation
Amati is a leading developer of advanced transmission equipment utilizing DMT technology for the ADSL, Very High-Speed Digital Subscriber Line (VDSL) and cable modem markets. Amati is also a provider of network connectivity systems for the internetworking and OEM marketplaces. The company's connectivity products include local area network gateways, client-based workstation software and network data communications interfaces.
Note to Editors: Statements made in this press release which are not historical, including statements regarding product demonstration, product capabilities and markets, are forward looking statements and as such are subject to a number of risks. Please see the Company's prospectus/proxy statement dated Oct. 16, 1995 and other reports filed pursuant to the Securities Exchange Act of 1934 for additional disclosure regarding such risk factors.
CONTACT: Amati Communications Corporation
Benjamin (Tac) Berry, 415/903-2398
or
Simon/McGarry Public Relations
Carol Felton, 408/746-0911
cfelton@shandwick.com |
