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ZyXEL Communications to Demonstrate Interoperability with Leading DSLAM vendors in the DSL Forum at CES

Placentia, January 3, 2000 -- ZyXEL Communications Inc., an innovator and a leading provider of Digital Subscriber Line (DSL) Customer Premises Equipment (CPE), announced today that it would be showcasing its Prestige 642R Multi-Mode Router in the DSL Forum (booth 4459) at the CES Show in Las Vegas January 6th - 9th. ZyXEL will demonstrate the capability of the Prestige 642R to administer a seamless video conferencing application ideal for both the residential and small business users.

The Prestige 642R is also the world's first commercially available ADSL CPE to implement PPPoE (PPP over Ethernet, RFC 2516). PPPoE preserves the existing dialup networking infrastructure to facilitate ADSL usage and deployment for users and service providers, making the Internet services charged by usage time. This is similar to that which you would find in the dialup scenario.

Made possible through the high speeds, reliability, and security of DSL, applications like video conferencing are quickly becoming a necessity in the business and communication environment. ZyXEL has contributed to faster implementation of DSL by assisting in positioning it as the most widely available broadband technology to the mass markets both domestically and internationally.

At the DSL Forum ZyXEL will demonstrate the incredible speed at which the Prestige 642R can run a video conferencing application while still leaving enough bandwidth to simultaneously run supplementary programs which require Internet accessibility. In addition to running essential applications to the home or business environment, ZyXEL will demonstrate the interoperability with leading suppliers of Central Office (CO) DSLAM equipment, including: ADC DSL Systems, Alcatel, Cisco Systems Inc.,Net2Net Technologies, Nokia, Nortel Networks, Orckit Communications, Samsung Electronics Co., and Sumimoto Electric Industries.

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 France Telecom (NYSE: FTE), Earthlink (NASDAQ: ELNK), Verizon (NYSE: VZ), Verio (NASDAQ: VRIO), Sprint, Telefonica Brazil, Telia, and Chunghwa Telecom. For more information on ZyXEL Communications, visit the company's website at http://www.zyxel.com.