TELIA and ZyXEL Sign Agreement for Distribution of Internet, ISDN Access Products in the Nordic Region

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July 08, 1999

Hsinchu, Taiwan , July 8, 1999 -- ZyXEL Communications Corporation, a leading manufacturer and provider of Internet Access Solutions in Taiwan, and TELIA System & Service AB, a company belonging to the TELIA Group, the largest telecommunications company and Internet Service Provider (ISP) in the Nordic Region, today announced that the two companies have signed an Agreement to distribute Internet Access and ISDN Products. Under this Agreement, TELIA will market and distribute ZyXEL's Internet and ISDN Access Products together with TELIA's Internet and ISDN Services.

"ZyXEL's Agreement with TELIA shows that our commitment to quality has been approved by a large telco as well as other leading players in the data communications field," said Shin-Jou Fang, President of ZyXEL. "Our future plan is to broaden our Internet access solutions, and we look forward to a long-term, successful relationship with TELIA."

"ZyXEL is dedicated to providing a faster, more customized business solutions to telcos and ISP customers, and our agreement with TELIA illustrates our determination," said Frank Rasmussen, President of ZyXEL Communications A/S in Denmark, ZyXEL's Nordic subsidiary.

About ZyXEL Communications Corporation
ZyXEL Communications Corporation (http://www.zyxel.com), founded in Taiwan in 1989, is a leading supplier of routers, xDSL products, ISDN terminal adapters, and modems. Product developed by ZyXEL over the years not only are industry leaders, but consistently win acclaim and are selected by worldwide telecommunications companies, ISPs, and other major companies. ZyXEL now serves Telia, Bell Atlantic, Telecom Italia, Czech Telecom, Taiwan Telecom, China Telecom, Korea Telecom, Cuba Telecom and other customers in over 150 countries spanning all seven continents.

About ZyXEL Communications A/S
ZyXEL Communications A/S (http://www.zyxel.dk), established in Denmark in 1998, is a subsidiary of the ZyXEL Group with the purpose of providing local technical & marketing support as well as prompt product delivery to ZyXEL's customers in Denmark, Iceland, Norway, Sweden, and Finland.

About TELIA
TELIA has 6 million private persons and companies as customers. With more than 30 thousand employees and sales of more than 45 billion Swedish Kronor, TELIA is one of the biggest groups of companies in Scandinavia. With Sweden as the base, TELIA has developed the products and services that have allowed TELIA to grow and expand all over the world. In Sweden TELIA offer fixed and mobile solutions, data, voice, internet, intranet, extranet and a wide range of other products and services to the countries 4,3 million residential, business and public sector subscribers.

The Nordic region and the Baltic Countries
TELIA is a major player in the Nordic region with subsidiaries in Denmark, Norway and Finland. TELIA is also active in the Baltic countries with local partners in Poland, Estonia, Lithuania, Latvia and S:t Petersburg.