Elastic Networks Inc. and Hitachi Telecom - USA, Inc. Form Strategic
Relationship to Combine Best-Of-Breed Products, Simplifying Voice and
Broadband-Based Internet Access for the Hospitality Market
Integration of Industry Leading Solutions Offers a Clear Migratory Path
for the Hospitality Industry to Create New Revenue-Generating
Internet-Based Services
ORLANDO, Fla., Jun 26, 2001 (BUSINESS WIRE) -- Elastic Networks Inc. (Nasdaq:
ELAS) and Hitachi Telecom have formed a strategic relationship to enable hotels
to simply and efficiently offer their guests advanced voice and broadband
services.
The two organizations will integrate Elastic Networks' EtherLoop(TM) technology
and Hitachi's HCX5000 Private Branch Exchange (PBX) solution into one compact
device that offers broadband access, Visitor Based Networking (VBN) and
telephony services in a single advanced, integrated platform. Because the
patented EtherLoop technology transports data at high speeds over the existing
copper wire infrastructure, the incorporation of this technology into Hitachi's
full-featured PBX solution creates strong opportunities not only for hospitality
companies, but also for all types of businesses, such as nursing homes,
MDUs/MTUs and educational and business campuses, to improve returns on
investment. The simple installation and comprehensive guest and administrative
features available with both the HCX5000 and HCX5000i offer an optimal means for
hotels to handle their back office and guest communications, while also meeting
the increasing demand for high-speed access, business-class local area networks
and other broadband services.
Hitachi Telecom is a market leader in hotel communications today, shipping over
41 percent of hotel (PBX) lines. With this new alliance, Hitachi Telecom will
expand their offerings to include new revenue generating services ranging from
Internet access and web-based content to consumer and business video services
and in-house, business-class local area networks.
"We are pleased that our strategic relationship with Elastic Networks will
enable us to provide our customers with the most technologically advanced hotel
system at the most economical cost feasible, while also allowing them to
increase revenues," stated Gene Pelletier, Hitachi's director of PBX business.
"Elastic's scalable, deployable EtherLoop technology fully complements the
features of Hitachi's superior HCX5000i solution in a manner that is truly
customer-oriented."
"EtherLoop technology enables Hitachi's hotel customers to deliver cost
effective, in-room broadband services over existing copper infrastructure. The
copper-based technology gives Hitachi's customers true plug-and-play
capability," said Guy Gill, President and Chief Executive Officer, Elastic
Networks. "Because more and more guests expect hotels to offer broadband
services, Elastic Networks' alliance with Hitachi leaves both companies well
positioned to capitalize on this growing market opportunity."
Don Reigel, vice president of sales for Xeta Technologies, noted, "As the
industry-leading distributor for lodging telecommunications systems, and
Hitachi's largest distributor, along with being an Elastic business partner, our
company is exceedingly pleased that these two partners have come together. We
believe that this relationship, between the market leader in PBXs and the market
leader in high-speed Internet technology, represents one of the strongest
competitive offerings in the business."
In addition to the immediate deployment of EtherLoop technology into today's
HCX5000 series, the two companies are co-developing a hardware-integrated
platform that will fit into future HCX5000i solutions. The anticipated
integration will provide the hospitality industry with a complete system for the
deployment of compact, analog telephone connectivity, property management
systems and content-rich broadband access services. Hitachi Telecom intends to
make the new integrated VBN System available as an evolutionary upgrade to
existing owners of the Hitachi HCX5000 systems - even those systems as old as 10
years.
About Elastic Networks Inc.
Elastic Networks is a broadband leader in first-mile Ethernet access solutions,
deploying its patented EtherLoop technology across a variety of products and
high-speed multi-media applications. With the introduction of the Storm System
family of intelligent IP-over-Ethernet products, Elastic Networks has
successfully addressed the needs of the carrier, enterprise, MDU/MTU and
hospitality markets for high-speed first-mile access solutions that deliver top
quality service to end users while eliminating costly deployment and complicated
support issues for service providers. Additionally, Elastic Networks is building
strategic relationships with distributor, chip manufacturing and data networking
partners.
The company has offices in Alpharetta, GA, Toronto, and Hong Kong. For more
information about Elastic Networks and its patented EtherLoop technology and
products, visit www.elastic.com or contact Elastic's U.S. headquarters in
Alpharetta, Georgia at 678-297-3100. For investor information, e-mail our
Investor Relations group at irinfo@elastic.com, or call 678-297-3100.
Elastic Networks forward looking statements
Certain statements contained in this release are forward-looking statements
(rather than historical facts) that are subject to risks and uncertainties that
could cause actual results to differ materially from those described. With
respect to such forward-looking statements, the Company seeks the protections
afforded by the Private Securities Litigation Reform Act of 1995. These risks
include, without limitation, (1) that the Company may fail to be competitive
with existing and new competitors, (2) that the Company may not maintain or grow
its level of revenues, given its currently limited customer base, (3) that the
Company's limited number of product offerings may fail to achieve widespread
market acceptance, (4) that negative changes in customer demands and
requirements regarding our prices, technology and products may occur, (5) that
DSL technology may fail to achieve widespread market penetration, (6) that
interruptions or disruptions in our product shipments and/or our various
arrangements with our distributors, manufacturers or resellers may negatively
impact our ability to make sales and/or minimize our costs, (7) that the Company
may not adequately respond to technological and regulatory developments
impacting the telecommunications industry, (8) that needed financing may not be
available to the Company if and as needed, (9) that a decline in the size and
potential growth of the MTU, carrier and international markets for our
technology may occur, (10) that a significant reversal in the trend toward
increased usage of the Internet may occur, (11) that a drastic, negative change
in the U.S. economy or market conditions may occur, and (12) that some other
unforeseen difficulties may occur from time to time. This list is intended to
identify certain of the principal factors that could cause actual results to
differ materially from those described in the forward-looking statements
included elsewhere herein. These factors are not intended to represent a
complete list of all risks and uncertainties inherent in the Company's business,
and should be read in conjunction with the more detailed cautionary statements
included elsewhere in the Company's most recent filings with the SEC.
About Hitachi Telecom (USA), Inc.
Hitachi Telecom, headquartered in Norcross, GA, is a subsidiary of Hitachi
America, Ltd., focused on developing and manufacturing telecommunications
solutions for the U.S. market. Hitachi's optical transport products group is
building the future of optical networks by creating solutions for network
service providers. Hitachi's PBX group offers communications systems for general
business, lodging, RV, nursing home and residential markets. Hitachi is the
market leader in PBX lines shipped to the lodging industry. For further
information, please visit hitel.com.
CONTACT: Media Contacts for Elastic Networks, Inc., Alpharetta
Mary Taormina, 678/297-3078
mtaormina@elastic.com
or
Hitachi Telecom
Jill Kuglar, 770/797-2517
Jkuglar@hitel.com
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KEYWORD: GEORGIA
INDUSTRY KEYWORD: PRODUCT
NETWORKING
SOFTWARE
TELECOMMUNICATIONS
COMPUTERS/ELECTRONICS
ELECTRONIC
GAMES/MULTIMEDIA
MARKETING
AGREEMENT
STOCK SYMBOLS: [(elas)] |
