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Non-Tech : Amati investors
AMTX 1.625+1.6%3:09 PM EST

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To: Frank Ferrari who wrote (28338)11/5/1997 12:37:00 PM
From: B.REVERE  Read Replies (1) of 31386
 
[NEC-LINK]-- This is directly from Amati's homepage
from last Nov. 1996. Amati is shipping as we speak
to HK according to the original year-old schedule
and HKT'S approval today.

"This agreement with NEC is important to Amati for several reasons," said Jim Steenbergen,
President and CEO, Amati Communications. "First, it permits Amati to closely work with a major
supplier in the integrated circuit (IC) and the telephone equipment markets. It further validates the
Amati DMT technology as the best solution for the high-speed transmissions over copper wire. And,
it creates the potential for product revenues from VDSL based systems developed under the
Agreement. We believe the VDSL market will prove to be even larger than the ADSL market and
we anticipate initial shipment of products under the Agreement before the end of 1997."

Amati and NEC will jointly develop the VDSL transceiver LSI using Amati's DMT technology and
NEC's advanced silicon fabrication facility. NEC makes available to the joint effort the resources of
one of the world's largest semiconductor producers. Amati will, as part of the agreement, also
provide software development needed to implement the patented DMT technology using these new
NEC ICs. Products based on NEC's ICs are expected to be part of high-speed fiber and copper
transmission systems that bring data and information services within reach of millions of telephone
subscribers. The VDSL products developed under the agreement will also utilize a high speed
analog interface design provided by Amati. The parties believe the NEC/Amati collaboration will
result in the first commercially available systems capable of such high speed applications over copper
loops due to the highly advanced NEC IC production facilities and the Amati expertise in VDSL
designs. VDSL represents one of the fastest services defined for deployment over copper wire and
the products to be developed by Amati and NEC should provide the fastest access products
(modems) capable of transmission over existing copper telephone networks. These networks today
carry voice transmission to millions of telco service subscribers; with VDSL, the same connections
would carry multiple broadcast quality video transmissions, Internet connections, and other
high-speed services simultaneously with voice transmission.

The agreement between NEC and Amati that will enable both companies to act as manufacturing
sources for VDSL products based on the to be developed components and software. These
products are expected to be used in advanced fiber access systems that enable the phone service
providers to extend fiber optics closer to the subscriber. Amati, as part of the agreement, will also
be able to manufacture VDSL products to be used by NEC in producing high-speed transmission
systems.

NEC will employ the newly developed VDSL transceiver LSI for NEC's Fiber To The Curb
(FTTC) systems including FTTB (Building), FTTCab (Cabinet), FTTN (Neighborhood) and NEC's
Digital Set Top Box named BAX product family by using NEC's advanced ATM and
state-of-the-art fiber optics technologies. The combination of NEC's ATM and fiber optics
technologies and Amati's VDSL technology assures realization of Broadband Access Systems to
support various services including fast Internet access, interactive video services as well as existing
narrowband services.

VDSL is being developed to permit transmission rates up to 60 Mbps over a single copper pair of
wires. The technology is capable of providing both symmetrical as well as asymmetrical digital
connectivity. VDSL provides high-speed over fiber networks as they approach the neighborhood, at
distances of 6,000 feet or less. VDSL technology permits variable data access rates depending on
the length of the line. At 1,000 feet, VDSL can provide 60 Mbps of throughput, which can be
allocated as required for downstream and upstream rates. For example, variable data rates can be
selected to meet application requirements such as 30 Mbps downstream and 30 Mbps upstream, or
45 Mbps downstream and 15 Mbps upstream. This technology differs from ADSL in that ADSL is
designed for longer loops at data rates up to 6 Mbps. In both technologies Amati is basing their
solutions on their patented DMT technology that provides for much higher performance over longer
loops and noisier (real world) conditions in both ADSL and VDSL systems. Amati, which has been
awarded the T1/E1 ANSI and ETSI industry standards for its DMT technology implementation of
ADSL, has recently made contributions to the T1/E1 committee describing Amati's technology as
part of the effort to establish standards for VDSL services.

Later,
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