ZyXEL Reports No Damage After the Earthquake and Launches Employee Donation to Assist Survivors and Relatives of Victims

Hsinchu, Taiwan, September 28 ,1999 - ZyXEL Communications Corporation, a leading provider of Internet access solutions, today announced that the company has resumed normal operation after the severe earthquake recorded at 7.6 Richter scale on September 21st. After inspection of the company located in the Science-Based Industrial Park,no physical damage to the factoryfacilities was foundexcept a two-day production loss due to the shortage of electricity throughout Northern Taiwan.

Shin-Jou Fang, the President of ZyXEL, stated earlier today that "We really appreciate our associates who sent their cares and prayers during these days. It's lucky that neither our employees nor our office in Hsinchu was injured during the earthquake. We expect no major impact on our business, nor any disruption in operation due to the expected power brownouts over the coming week."

In response to the Taiwan government's request, ZyXEL also launched an employee donation scheme to provide for the shelter and homeless earthquake survivors. ZyXEL announced that it plans to donate US$156,300 (5,000,000 New Taiwan Dollars) through employee and company contributions for the country's long term needs such as infrastructure rebuilding.

"All of us at ZyXEL see the miserable devastation and feel that we have the obligation to do everything we can to help in this time of difficulty," said Fang. The US$156,300 donation made by ZyXEL will be used for the government's Earthquake Relief Fund. In addition to the donation, ZyXEL will offer financial and other necessary supports for employees whose families and relatives have been affected by the earthquake."
As the reports continue to come in, it is apparent that the effects of the earthquake in Taiwan are worse than they originally appeared. As of this writing, there are 2112 confirmed dead; 8737 injured; 11 missing; 125 still trapped, over 100,000 homeless, and more than 30,000 houses and 7,000 buildings have collapsed.

About ZyXEL
ZyXEL Communications Corporation (http://www.zyxel.com) is a leading supplier of a wide variety of ISDN, PSTN, WAN, and xDSL Internet access solutions for the worldwide SOHO and SMB users. ZyXEL now has distributors in over 70 countries, servicing customers in over 150 countries spanning all seven continents.