ZyXEL Ships the Prestige 724 G.SHDSL CSU/DSU

New Prestige 724 Provides Businesses with a Cost-competitive Alternative to Traditional Leased Lines

Hsinchu, Taiwan, October 31, 2001 - ZyXEL Communications Co. (TAI:2391.TW), a pioneer and leading provider of broadband access solutions, today announced immediate availability of its new Prestige 724 G.SHDSL CSU/DSU (Channel Service Unit/Data Service Unit). Designed for small offices and branch offices, the Prestige 724 is standards-based and offers both LAN-to-LAN and high-speed Internet access applications via G.SHDSL service.

Cost-competitive Alternative to E1/T1
Interoperable with frame relay and PPP routers via the data interface, the Prestige 724 allows connection to a PPP or Frame Relay router. This design allows businesses to easily migrate from expensive leased lines to SHDSL services without changing the existing LAN architecture, hence making it an ideal alternative to traditional leased lines such as E1/T1.

Symmetrical High Speed Internet Access
Following ITU G.991.2 standards and interoperable with major vendors' G.SHDSL solutions, the Prestige 724 supports symmetrical transmission rates of up to 2.3 Mbps. For service provider's convenience, the Prestige 724 also supports rate management depending on distances and service changes.

Better yet, G.SHDSL service provides the flexibility of scalability. The Prestige 724 allows capacity increase of the Internet connection (within certain distance limitations) without changing ISP or purchasing new equipment.

Multiple Protocol Encapsulation Support
The Prestige 724 supports FRF.5 and FRF.8 Frame Relay-to-ATM Networking standards. With support of both ATM and Frame Relay network access protocols, the Prestige 724 make it easy to migrate to ATM access while preserving the internal Frame Relay network.

Ease of installation and Configuration
To minimize training and support costs, ZyXEL's DSL products have been designed to be uniquely easy to install, use and service. The new Prestige 724 provides a menu-driven interface for configuration and monitoring. The interface is available directly via the console or remotely over the WAN using telnet.

Full Network Management
The Prestige 724 offers a variety of options for network management. It supports password protected local and remote network management via a telnet connection using SMT (System Management Interface). It also supports remote telnet and FTP (File Transfer Protocol) firmware upgrade.

About ZyXEL Prestige 600 and 700 Symmetrical DSL Solution
ZyXEL's Prestige 600 and 700 Series symmetric DSL solutions adopt both SDSL and next generation G.SHDSL technologies, providing symmetric data transmission at selectable speeds of up to 2.32 Mbps. The auto-detect feature of Multiple Rate Selection and Auto Baud make the configuration easier than ever, hence making it an ideal high-speed alternative to leased line service for medium businesses seeking to access the Internet or remote office networks. ZyXEL's symmetric DSL CPE has passed extensive interoperability testing with major COE vendors, which ensures the performance of multi-vendor deployment scenarios.

Availability and Warranty
The Prestige 724 is available now and can be ordered via ZyXEL's global sales network, including direct from the company and through partnered service providers and distributors. ZyXEL offers a warranty period of up to 2 years covering materials and workmanship.

About ZyXEL Communications
ZyXEL Communications Co. (TAI:2391.TW), located in Hsinchu, Taiwan, is world's third largest DSL CPE 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.