KDDI Chooses ZyXEL VDSL Solution for Its ' DION ' F ' Mansion ' Broadband Internet Service in Japan

ZyXEL VDSL Solution Enables KDDI to Enrich User's Experience to a Broader Range of Content and Services.through Increased Bandwidth

Hsinchu, Taiwan, October 3, 2002 -- ZyXEL Communications Co. (TAI:2391.TW), a leading global broadband access solution provider, today announced that KDDI CORPORATION , Japan's second largest telecommunications operator , has chosen ZyXEL VDSL solution for the deployment of its "DION "F" Mansion" service, the best-effort Internet service using 100Mbps optical fiber for collective dwellings. With this new broadband access service, KDDI can provide customers with always-on, ultra high bandwidth access to the Internet utilizing the existing phone lines.

ZyXEL will start supplying KDDI through OSI Plus Corporation, a system integrator and one hundred percent owned subsidiary of KDDI Corporation and KDDI R&D, with ZyXEL VES-1000 series VDSL switch and the Prestige 840 series VDSL CPE to Japan. Users can benefit from high speed VDSL connectivity that allows access to a variety of services, such as video conferencing, video on demand, e-mail services, telecommuting and online shopping.

"Chosen by KDDI has enhanced our ability to offer our VDSL solutions to one of the world's leading telecommunications carriers," said Dr. Shun-I Chu, President of ZyXEL Communications. "We expect that KDDI's high visibility and reach will allow us to offer some very comprehensive but cost-effective solutions to businesses and consumers across Japan."

About ZyXEL's VDSL Solution
ZyXEL's VDSL solution includes VES-1000 series VDSL Ethernet Switch and Prestige 840 series VDSL Customer Premise Equipment (CPE). The VES series multiplexes traffic from up to 12 subscribers into one or two 100M Ethernet ports that connect to any Ethernet switch or broadband router.

ZyXEL's VDSL solution can run up to 1.5KM at the speed of 5Mbps, which enables the cost-effective provisioning of bandwidth consuming applications for high building environment such as hotels, commercial and residential buildings. The flexible and expandable design of ZyXEL's VDSL solution allows service providers to start VDSL service at a minimum cost. As the number of subscribers and applications grow, additional equipment can be added to increase available customer base.

KDDI (TSE 9433) is one of the world's leading telecommunications carriers, with FY2001 consolidated operating revenues of 2,833 billion Yen. The company provides businesses and consumers with a complete portfolio of fixed line, mobile telephony and Internet access. Web site:

About OSI Plus Corporation
OSI Plus Corporation is one of the leading companies in developing several kinds of software related to Information Communications. Products developed by OSI Plus with close cooperation with KDDI R&D include VoIP system, voice recognition system and security system. System integrations in CATV internet and high speed access from condominiums are one of broadband solutions. For more information on OSI Plus Corporation:

About ZyXEL Communications
ZyXEL Communications Co. (TAI:2391.TW), located in Hsinchu, Taiwan, is world's leading broadband access solution provider. Products developed by ZyXEL over the years are not only industry leaders, but consistently win acclaim and are selected by worldwide telecommunications companies, ISPs, and other major businesses. ZyXEL now serves Deutsche Telekom, EarthLink (NASDAQ: ELNK), France Telecom (NYSE:FTE), Sprint, Telefonica, Telenor, Verizon (NYSE: VZ) and many others. For more information on ZyXEL Communications, visit company's Website at