e-Net Announces Expansion of Contract with Com21
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WASHINGTON, Jan. 28 /PRNewswire/ -- e-Net, Inc. (Nasdaq: ETEL) today announced at the ComNet
tradeshow and exhibition that it has expanded its previously announced relationship with Com21, Inc.
(Nasdaq: CMTO) by agreeing to jointly develop a new line of voice-enabled cable modem products and to
increase the length of their existing strategic alliances.
Since January, the two companies have been developing COM21's latest cable modem telephony module,
known as the Telephony Application Interface Module 200 (T-AIM 200). This product allows telephony and
fax to be carried alongside high-speed data on cable television networks using Com21's ComUNITY
Access(R) Asynchronous Transfer Mode (ATM) network architecture. Recently, e-Net and Com21 have
agreed to expand their co-development efforts by adding Voice over Internet Protocol (VoIP) support to the
T-AIM 200 product. The development of this product will bring cable service, Internet access, telephony
and fax to the home on a single access service, via existing cable television infrastructures.
In addition to the implementation of e-Net's standards-based Voice over IP technology, the term of the
contract has been extended from 30 months to a period of 42 months. e-Net will obtain a royalty of $5.00
per T-AIM 200 unit sold, and Com21 has increased its development funding to e-Net. The term for the
royalty payment will begin upon the commencement of product sales, expected in calendar year 1999.
Com21 will be principally responsible for the new product's sales and marketing.
At the Western Show held in Anaheim, California, Com21 demonstrated the T- AIM 200 which can be
inserted into the ComPORT cable modem, providing a single access device for voice and high-speed data
for remote enterprise applications such as telecommuting and virtual call centers. With the VoIP
capabilities, cable operators are able to target residential telephony markets.
Robert Veschi, CEO of e-Net said in a statement that the relationship with Com21 and the prospect of
very high margin royalty revenues from the sale of the new cable modems was consistent with the
company's marketing strategy. This strategy was presented to institutional investors and equity analysts
at The American Electronics Association (AEA) investor conference in San Diego.
"We have outlined a strategy in which e-Net will focus on niches in the VoIP market where the company
has distinct competitive advantages. The Voice over Cable TV market is one of those niches," Veschi
said. "Our relationship with Com21 represents a success of that strategy. We started working with
Com21 in 1997, and we have been co-developing the T-AIM 200 over the course of the year. The
integration of e-Net's VoIP technology and Com21's cable modem expertise has produced an
industry-leading product. The customers we seek are visionary, next-generation telephone companies,
and this market can include cable television service providers. These customers are starting to require the
Simple Gateway Control Protocol (SGCP) / Media Gateway Control Protocol (MGCP) standard for their
telephony service, and it is around this standard that e-Net's product architecture is targeted. The top
priorities for e-Net have been maintaining a strong balance sheet, introducing new products, and
establishing certain strategic relationships. Com21 is a superb example of such relationship."
"The expanded contract between e-Net and Com21 complements our development efforts in the Voice
over Internet Protocol (VoIP) arena for the cable modem market," said Pete Fenner, President and CEO at
Com21, Inc. "Com21 was the first cable modem company to demonstrate a working prototype at the
Western Cable Show in December. In the very near future, cable operators can take advantage of VoIP
capabilities via modems, to service the growing residential telephony market," added Fenner.
About e-Net
e-Net, Inc. develops, markets, and supports open telecommunications software and associated hardware
that enable local, national, and international telephone communications, information exchange, and
network optimization. Its leading product is Telecom 2000(TM), a powerful, cost- effective hardware and
software combination that delivers full voice quality- of-service at a low per-station price. Fully integrating
voice and data networks in both the local and wide area, users enjoy advanced access features, such as
call transfer, call hold, and call forward, on a simple GUI, utilizing the most familiar system interface, the
telephone. Telecom 2000(TM) provides full PBX functionality and delivers its Data Telephony capability to
public or private networks in the local or wide area, incorporated into the public system.
About Com21
Com21 is a leading global provider of cable modem technology for delivering high-speed Internet access
over CATV systems. The company enables cable operators and service providers with the abilities to
provide high- speed, cost-effective Internet access to corporate telecommuters, small businesses, home
offices and residential users. Founded in 1992 and completing its initial public offering in May 1998, its
stock is publicly traded on Nasdaq under the symbol CMTO. Com21 is headquartered in Milpitas,
California. For more information, visit the Com21 Web site at www.com21.com.
Certain statements made herein that are not historical are forward-looking within the meaning of the
Private Securities Litigation Reform Act of 1995. The words "estimate," "project," "intend," "expect,"
"believe," and similar expressions are intended to identify forward-looking statements. These
forward-looking statements involve known and unknown risks and uncertainties.
For more information on e-Net, visit the company's Web site at datatelephony.com, call e-Net
at 1-888-FON-ENET or 301-601-8700, or telefax e-Net at 301-601-8777.
SOURCE e-Net, Inc.
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