Late news from Business Wire.
  BW0295  AUG 07,1996      15:43  PACIFIC      18:43  EASTERN
  ( BW)(AMATI/TADIRIAN)(AMTX)(TTELF) Amati and Tadiran  Telecommunications Report Positive Results in ADSL Video-On-Demand  Trial in Israel; Trial With Bezeq, Israel Telcom, Provides  Video-on-Demand to Local Subscribers 
              Business Editors and Computer Writers         
              SAN JOSE, Calif.--(BUSINESS WIRE)--Aug. 7, 1996--Amati  Communications Corporation (NASDAQ: AMTX) and Tadiran  Telecommunications Ltd.(NASDAQ: TTELF), announced very positive  results of a video-on-demand (VOD) trial in Israel for interactive  video services to the home using Asymmetric Digital Subscriber Line  (ADSL) technology.  
     Amati has developed and manufactured the ADSL shelf system and  remote modems being used in this trial, equipment that is based on  the company's DMT (Discrete Multi-Tone) technology.               The trial, with Bezeq (Israel Telcom), began in April 1996 and is designed to validate the technical aspects of VOD service.  It  currently involves more than 100 homes scattered around two central  offices in Tel Aviv and Jerusalem, 30 miles apart, as well as some  remote homes up to 100 miles away, reached via an interoffice  transmission infrastructure.               Customers are being offered a wide variety of video and  interactive services.  Amati's Overture 4 ADSL/DMT modems are  transmitting data over existing copper telephone lines at 2 Mbps  downstream and 9.6 Kbps upstream at distances of more than 5 Km.               With the success of the trial to-date, Bezeq is in the process of expanding to a full marketing trial.  Michael Levinkron, program  manager for Tadiran Telecommunication said, "Delivering live video to the home over common telephony copper pairs was merely speculation  until Amati equipment proved it could be done.  And, Amati's  equipment demonstrates the reliability and stability of a  `plug-and-forget' solution."               James Steenbergen, President and CEO of Amati, said "We are  pleased to be supplying the ADSL/DMT technology to support Tadiran.   Their system expertise and the Amati DMT technology being made  available permits Bezeq to conduct this VOD trial.  Obviously, we are very encouraged by the response of those to whom the ADSL/DMT-enabled services are being delivered."               He added, "This trial further reinforces our conviction that  ADSL/DMT will be a key technology in the future of higher bandwidth  signals to the home, over existing telephone lines and at low cost to the subscriber."               In addition to the Bezeq trial, Amati is also participating in  tests of 2 Mbps and 4 Mbps VOD services being offered by other PTTs  in Europe and the Asia-Pacific Rim, and a 6 Mbps trial in Australia  of a service offering broadcast quality video to the home by Telstra  (Telecom Australia).  The company is also providing ADSL/DMT  equipment in the current GTE Internet access trial in Dallas, Texas. Tadiran Telecommunications Ltd. specializes in a variety of  telecommunications fields, including: Digital Public Switching,  Access, Transport, Wireless Local Loop, and Datacom Systems, as well  as Business Telecommunication Systems, and more.  The company  provides innovative solutions to telecommunications network needs  throughout the world.
     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 the holder  of the ADSL/DMT patents and has licensed the technology to companies  such as Nortel, Motorola, and NEC.  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.  
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              Note to Editors: Statements made in this press release which are  not historical, including statements regarding product demonstration, product capabilities, availability 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 October 16, 1995 and  other reports filed pursuant to the Securities Exchange Act of 1934  for additional disclosure regarding such risk factors.  
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