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ZyXEL Partners with Atreus Systems to Deliver Broadband Access Service for the Hospitality

Hsinchu, Taiwan, and Santa Clara, California, June 4, 2001-- ZyXEL Communications Co., (TAI: 2391.TW), a pioneer manufacturer and supplier of broadband access solutions, and Atreus Systems, an innovative software technology company developing intelligent broadband service creation and delivery platforms, today announced a partnership to integrate the ZyXEL AES-100 ADSL-Ethernet Switch with the Atreus guestLINK(tm) Solution for the Hospitality market. ZyXEL will formally unveil this new solution at Computex Taipei 2001 from June 4-8 in Hall 1, Booth B350.

"The partnership with Atreus represents an important beginning for ZyXEL to provide a complete solution for hoteliers and hotel service providers," said Annie Huo, Product Marketing Manager of COE Business Unit at ZyXEL. " As business travelers' demand for quality high-speed Internet services continues to grow, the hospitality industry must deliver high-value services to differentiate themselves from the competition and build customer loyalty. ZyXEL's comprehensive portfolio of InterTenant(tm) Network Solution coupled with Atreus' guestLINK(tm) Hospitality Solutions, will enable hoteliers to quickly generate high-margin revenue opportunities through rapid deployment of ADSL services and tailored customer portfolio of broadband services.

"Atreus' guestLINK(tm) Solution combined with ZyXEL AES-100 empowers service providers and hotels alike to launch value-added hotel services," said Brenda Toonders, Director of Marketing at Atreus Systems. "Our flexible platform manages upgrades and can customize applications, portal content and services remotely including the creation of event-specific service promotions, service bundles and advertising, for a group of related hotels or an individual hotel, even down to a single room. "As a result, providers can reduce the costs of managing services without having to physically return to the hotel to install new software or features".

About Atreus guestLINK(tm) Hospitality Solution
The Atreus guestLINK(tm) platform features a custom-designed portal with an easy-to-use registration process through which hotel guests may access a comprehensive range of data networking services. The guest can choose invoice or credit card payment options. In addition, the platform provides the hotel with the ability to define flexible rate structures for individual rooms and integrates with the provider's OSS's and the hotelier's PMS management systems for efficient service billing. By implementing guestLINK(tm), providers can rapidly launch a complete line of broadband services to hotels from a single platform and differentiate themselves to build customer loyalty.

About Atreus Systems
Atreus Systems is a leading developer of intelligent broadband service creation and delivery platforms for service providers and carriers. The company's proven software solutions enable service providers and carriers to increase profitability per customer by creating and delivering customized, bundled IP, application and content services over broadband networks. Atreus Systems, headquartered in Santa Clara, California, is a privately held company financed by leading telecom venture capital firms SOFTBANK Venture Capital, Blueprint Ventures, and Skypoint Capital. For more information, visit the company's web site at www.atreus-systems.com or call (800) 764-5514.

About ZyXEL Communications Partnership Integrates ZyXEL AES-100 ADSL-Ethernet Switch with Atreus' guestLINK(tm) Hospitality Solution

Together the AES-100 and guestLINK(tm) will enable service providers to rapidly launch broadband Internet services designed uniquely for the hospitality industry. Guests can access the Internet without having to download software or reconfigure their PC, access their email or corporate servers, schedule and use Internet enabled meeting rooms as well as order hotel services, view billing online, make reservations with local transportation or entertainment services and many others. Better yet, guest profiles such as preferred guest memberships, services, usage patterns and configurations can be saved. This creates a more personalized environment the next time the guest stays chooses to stay in the hotel.

About ZyXEL AES-100
ZyXEL AES-100 is a powerful and innovative ADSL-Ethernet switch. The AES-100 aggregates the traffic from up to 16 ADSL lines to the Ethernet port and forwards it to ZyXEL's Prestige 1400 IP WAN router or a third party router/switch. The router then routes the traffic further to the Internet.
Compatible with standards-based ADSL, the AES-100 can be deployed alone or together with ZyXEL's ADSL CPE or WAN routers to form an integrated broadband access solution. By Deploying the AES-100 in a large residential building, commercial building or hotels, service providers are able to leverage the existing phone line wiring to provide broadband access to all tenants.

Availability
For availability of both the ZyXEL AES-100 and the guestLINK(tm) platform please contact your local company representatives, or contact both companies directly.
ZyXEL Communications Co. (TAI:2391.TW), located in Hsinchu, Taiwan, is Taiwan'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 Chunghwa Telecom, Deutsche Telekom, EarthLink (NASDAQ: ELNK), France Telecom (NYSE:FTE), Sprint, Telefonica Brazil, Telenor, Verizon (NYSE: VZ) and many others. For more information on ZyXEL Communications, visit company's Website at http://www.zyxel.com.