ZyXEL Ships New ADSL PPPoE Modem -- The Prestige 642ME

Hsinchu, Taiwan, June 7, 2001 -- ZyXEL Communications Co., (TAI: 2391.TW), a pioneer manufacturer and supplier of DSL customer promise equipment (CPE), today announced immediate availability of its new ADSL modem which incorporates the advantages of ZyXEL's most advanced PPPoE (PPP over Ethernet, PPPoE) technology with the comprehensive features of ZyXEL's Prestige 600 ADSL line.

Enhanced PPPoE Feature for Easy Virtual Dial Up
With ZyXEL's new built-in PPPoE feature, the Prestige 642ME is designed for quick, intuitive and easy installation. ZyXEL's new PPPoE innovation eliminates the pre-installation requirement of PPPoE software or Microsoft Virtual Network Software, which used to be necessary when making a new PPPoE connection. This breakthrough greatly reduces the support cost of installing PPPoE software in different platform computers, and enables the product to truly be plug-and-play.

Ease of installation and Configuration
The Prestige 642ME's pre-configured factory settings benefit both the service provider and their customers, by eliminating the time and technical expertise required. With ZyXEL's new Web-based graphical interface, the Prestige Network Configurator, all functions of the Prestige are software configurable via a user-friendly Web browser.

"ZyXEL's Prestige 642ME has successfully set a new milestone in terms of ease of installation for DSL modems," said Tony Hsu, Vice President of DSL CPE Business Unit at ZyXEL. "After plugging the ADSL modem onto a user's PC or laptop, service providers no longer need to install any PPPoE software. Through a simple configuration, the product is up and running within minutes. This represents a significant savings in time and support cost for mass deployment. Furthermore, users can still enjoy the benefits of PPPoE regardless of changes to their computer platform or OS version."

Multiple-flavor ADSL Standard
Utilizing industry-standard Discrete Multi-Tone (DMT) ADSL technology, ZyXEL's Prestige 642ME supports both Full-Rate and G.Lite standards, which allows downstream transmission rates of up to 8Mbps and upstream transmission rates of 832 Kbps.

Featuring Auto-negotiating rate adaptation between the two standards, ZyXEL's Prestige 642ME allows subscribers to easily upgrade from a G.Lite to a Full-Rate service or vice versa.

Complete Protocol Encapsulation Support
The Prestige 642ME also support a variety of data encapsulation protocols. These features ensure interoperability with the remote access servers and service offerings worldwide. Other features designed to maximize ADSL service performance include DHCP server, DHCP client, DHCP relay and DNS relay.

About ZyXEL's PPPoE Innovation
ZyXEL's Prestige 600 family represents the world's first commercially available ADSL CPE to implement PPPoE. Its PPPoE patent submission has been filed with the United States Patent and Trademark Office (USPTO), Taiwan Intellectual Property Office (IPO), European Patent Office, and Intellectual Property office of P. R. China.

Availability
Available now, the Prestige 642ME can be purchased through ZyXEL's worldwide sales networks, including directly from the company and through the company's service provider partners. More information on the Prestige 642ME visit http://www.zyxel.com/product/dsl/p642me.htm

About ZyXEL ADSL Solutions
ZyXEL's Prestige 600 Series ADSL Solution is designed for small office, home office and residential users, enabling high-speed Internet connections at speeds of up to 8Mbps. Easy installation and factory-installed settings benefit both the service provider and their customers by eliminating the time and technical expertise required to set up the device. The Prestige ADSL Solution fully complies with ANSI T1.413 Issue, ITU-T G.992.1 (G.DMT) and G.992.2 (G.Lite) ADSL standards for worldwide deployment, and has been verified by undergoing extensive interoperability testing with major DSLAM providers. For more information visit http://www.zyxel.com/product/dsl/index.htm

About ZyXEL Communications
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 (TAI:2412.TW), 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.