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ZyXEL Announces Immediate Availability of VPN Capability for its ZyWALL 10 Internet Security Gateway

Enhancement Protects Business-critical Information and Allows Information to be Exchanged over Cost-effective Public Networks

Hsinchu, Taiwan, October 18, 2001 -- ZyXEL Communications Co. (TAI: 2391.TW), a pioneer manufacturer and supplier of DSL customer premise equipment (CPE), today announced virtual private network (VPN) enhancements to its ZyWALL 10 Internet Security Gateway. ZyWALL VPN capability will integrate seamlessly with Firewall security appliances, and provide the cost-effective infrastructure to meet the increasing demand of remote access solutions for today's businesses.

The ZyWALL 10 VPN allows a business to establish a private tunnel over a public network between its headquarters and geographically dispersed branch offices or telecommuters. The data is encrypted when traveling over the public network to ensure secure transmission between two sites. This application is cost-effective compared with traditional leased-line services, and allows businesses to operate smarter, and to obtain competitive advantages.

About the ZyWALL 10 Internet Security Gateway
Tailored for SOHO users, the ZyWall 10 is an ideal solution for sharing broadband Internet access while providing maximum network security. Offering comprehensive firewall protection and IPSec VPN, the ZyWALL 10 allows up to 10 users to securely access corporate networks through a VPN. The ZyWALL 10 acts as a secured gateway between the Internet and the LAN, and provides the first line of defense against possible Internet security attacks from external hackers and vandals.

In addition to the comprehensive firewall and VPN features, the ZyWALL 10 offers other additional security and network management services such as content filtering. The ZyWALL 10 is affordable, easy to install and manage, hence making it a perfect choice for always-on Internet connection such as DSL or Cable. More information on the ZyWALL 10 visit http://www.zyxel.com/product/firewall/zywall10.htm

About ZyXEL Communications
ZyXEL Communications Co. (TAI:2391.TW), located in Hsinchu, Taiwan, is a leading supplier of complete broadband access solutions. 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 Chunghwa Telecom, Deutsche Telekom, EarthLink (NASDAQ: ELNK), France Telecom (NYSE:FTE), Sprint, Telefonica Brazil, Telenor, Verizon (NYSE: VZ), Telia, Verio (NASDAQ: VRIO), and many others. For more information on ZyXEL Communications, visit company's Website at http://www.zyxel.com.