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Lucent Technology Taiwan and ZyXEL Communications Awarded 166,000 ADSL Line Tender from Chunghwa Telecom

Hsinchu, Taiwan, February 7, 2001 -- ZyXEL Communications Co., (TAI: 2391.TW) a pioneer manufacturer and supplier of DSL customer premises equipment (CPE), today announced that its partnership with Lucent Technology Taiwan has been awarded three extended contracts once again from Chunghwa Telecom, Taiwan's largest phone company. By these new contracts, ZyXEL will continue to be Chunghwa's preferred ADSL CPE provider in their aggressive deployment of ADSL services in Taiwan, which includes the supply and installation of ZyXEL's Prestige 642R ADSL routers in northern and central Taiwan.

Last year, Lucent Technology Taiwan and ZyXEL has won three contracts from Chunghwa Telecom, which in terms of 166,500 ports of ADSL access equipment including ADSL modems and routers. Chunghwa Telecom has been expanding its HiFly ADSL service aggressively throughout the year, hence expended the contracts to purchase additional 166,000 ports of ADSL access equipment.

"Chunghwa Telecom has gained perfect ADSL solution from Lucent and ZyXEL last year, which was proved to be well performed in its mass deployed high-speed data delivery networks," said Shun-I Chu, the President of ZyXEL Communications. "The additional contracts will further strengthen ZyXEL/s leading position in Taiwan and global DSL market," Chu added.

ZyXEL's Prestige 642 ADSL Router
ZyXEL's Prestige 642R ADSL router was amongst the industry's first bridge/router CPE devices that implemented PPPoE (RFC 2516). PPPoE preserves the existing dial-up networking infrastructure that users are already familiar with. For the ISPs/carriers, PPPoE requires no new infrastructure and allows the reuse of existing support facilities, e.g., RADIUS, which greatly speed the new broadband service deployment.

The Prestige 642R router is designed for small office/home office and residential users allowing high-speed Internet connections at speeds of up to 8Mbps. It is the most cost effective, easy-to-use broadband Internet access solution, an ideal product for users who require high-speed DSL access without the added complexity. For more information on ZyXEL DSL solutions, visit http://www.zyxel.com/product/dsl/index.htm

About Lucent Technologies
Lucent Technologies (NYSE: LU), headquartered in Murray Hill, N.J., USA, designs, builds and delivers a wide range of public and private networks, communications systems and software, data networking systems and microelectronic components. Bell Laboratories is the research and development arm for the company. For more information on Lucent Technologies, visit its Web site at http://www.lucent.com.

About ZyXEL Communications
ZyXEL Communications Co. (TAI:2391.TW), located in Hsinchu, Taiwan, is a leading supplier of complete networking access solutions for Internet/Intranet/VPN/Extranet applications. 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, France Telecom (NYSE:FTE), EarthLink (NASDAQ: ELNK), Sprint, Telefonica Brazil, Verizon (NYSE: VZ), Telia, and Verio (Nasdaq: VRIO). For more information on ZyXEL Communications, visit company's Website at http://www.zyxel.com.