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NetEx: New HyperPipe Technology Enables Next-Generation Wideband Services without Multi-Billion Dollar Network Upgrades

MINNEAPOLIS, MN – June 23, 2008 – NetEx, the leader in high-speed data transport over TCP, today announced that its HyperPipe™ bandwidth optimization software technology enables ISPs, phone and cable providers to deliver next-generation wideband services over existing broadband IP networks. A HyperPipe deployment provides a double-edged bottom line benefit with new revenue opportunities from enhanced wideband services while eliminating the need for multi-billion dollar infrastructure upgrades.

HyperPipe is NetEx’s bandwidth optimization software application, providing up to a 10x throughput boost on any IP network. The software can be easily deployed at an ISP, telco or media company’s central office and on the customer’s cable box or PC, delivering an instant massive speed improvement requiring no investment in upgrading the network.

HyperPipe has the potential to dramatically reshape the market by eliminating the billion dollar expense and extended timelines that are typically required for companies to upgrade their networks in order to deploy wideband speeds and services. Comcast and Verizon currently offer 50 Mbps wideband services, while providers such as AT&T and Time Warner Cable have yet to move beyond their standard broadband offerings. Verizon has reported that it will spend over $23 billion for the next several years into building its FIOS Fibre-to-the-Premises optical network that offers the same 50 Mbps speed as Comcast. Using conventional technology, it would be a daunting task for any provider to catch up to those competitors, requiring an investment of tens of billions of dollars and take several years to deploy the fiber cabling. Where there is cable or fiber to the home, HyperPipe provides a game changing solution. Deploying HyperPipe over its current network would enable any and all service providers to deliver video and data services at up to 100 Mbps over its existing network simply by adding HyperPipe software. Just as important as the cost savings is the rapid time for deployment. HyperPipe simply requires the software to be installed at both ends of the network. Delivering HyperPipe to the customer is as simple as pre-loading a cable box with the software or automatically sending the software as a download the first time the customer connects to the network.

“HyperPipe radically changes the dynamics of this market, giving providers the ability to deliver next-generation services without the cost and time delays of deploying next-generation networks,” said Robert MacIntyre, Vice President of Business Development and Marketing at NetEx. “The time-to-market advantages of our HyperPipe software solution gives service providers the freedom to look at the market opportunities more strategically along with the ability to rapidly enter a wideband market selectively to give them the highest ROI.”

MacIntyre points to Comcast as an example of how current wideband service providers can benefit from a HyperPipe deployment. Comcast’s new service runs at an advertised maximum speed of 50 Mbps over a 100 Mbps cable. However, that bandwidth is typically consumed with re-transmits and other communications noise that detract from the 50 Mb end-to-end performance. With the addition of HyperPipe software, those communications issues are mitigated and the data delivery is optimized to the point where a provider such as Comcast can deliver 50 Mbits of effective data throughput over a fraction of the bandwidth leaving the majority of other bandwidth free to deliver additional services, including voice over IP, video-on-demand, music-on-demand, live events and other “X-on-demand” services.

About HyperPipe
HyperPipe was designed to accelerate traffic over an IP network. The advanced algorithms within HyperPipe eliminate the problems that constrain the speed of typical IP networks by protecting data packets from variations in the quality of line conditions such as latency, jitter, and bit errors that require packets to be re-sent. HyperPipe then compresses the data before sending it across the IP network. The net result is up to a 10x speed boost for traffic over the existing network.

About NetEx
Formed in 1999 as a spin-off of Storage Technology Corporation (StorageTek®), privately-held NetEx has provided the world's fastest data transport in the industry, along with guaranteed data delivery, for over 25 years to hundreds of the world's largest and most sophisticated organizations, including some of the most prestigious providers of financial, transportation and telecommunications services and government entities. Customers include BP, Telstra, NTT, Verizon, BellSouth, Qwest, Royal Bank of Scotland Group, LloydsTSB, NDC Health, IRS, American, Lufthansa, Northwest, United Airlines and Kellogg. The company has recently retained The Lauffin Group to enhance their market reach and position. For more information about NetEx, NetEx/IP or HyperIP, visit www.netex.com or call +1 763-694-4300.

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