ZyXEL Introduces IP-Based DMT VDSL Solution

VES-1316 VDSL Switch and Prestige 871 VDSL Modem enable ISPs to offer cost effective and high-speed integrated services.

Hsinchu, Taiwan, June 5, 2003 -- ZyXEL Communications Co. (TSE: 2391), world's leading broadband access solutions vendor, today announced its IP-based Discrete Multi-Tone (DMT) VDSL solution: VES-1316 VDSL Switch with Prestige 871 VDSL Modem. ZyXEL, with the release of this combination, becomes one of the world's leading manufacturers to provide Quadrature Amplitude Modulation (QAM) -based and DMT-based VDSL solutions, presenting comprehensive selections to the telecommunication industry.

"ZyXEL developed the VDSL solution based on the IP network," states Dr. Yuh Long Chen, ZyXEL's Senior VP of Central Office Business Unit. "The IP network infrastructure has benefits such as high Gigabit bandwidth, great flexibility, as well as low deployment and maintenance costs. In addition, with its capability of integrating data, voice and video, IP network is suitable for online multimedia and audio/video applications." Today, ISPs in Asian countries such as Taiwan, China, Japan and Korea are switching to Gigabit Ethernet, with similar shifts occurring in regions previously dominated ATM, such as Europe and the United States.

Chen also points out that while QAM-VDSL was developed earlier, and bears the pricing advantage; yet the other mainstream technology, DMT-VDSL, has a more flexible spectrum and is capable of adjusting the data speed automatically according to the line quality, subsequently eliminating the need for manual adjustments under undesirable network conditions. Being one of the few companies in the world to provide DMT-based VDSL solutions, ZyXEL is holding a strong position in the highly competitive marketplace.

The ZyXEL VES-1316 is a 16-port, 1.5U VDSL Switch, providing a maximum of 50Mbps download and 10Mbps upload bandwidth. The ample bandwidth of the VDSL not only enables numerous next-generation online media services, but also allows ISPs to provide state-of-the-art video, voice, and data integration services through regular phone lines. Different from the conventional "one-to-one" ATM networks, VES-1316 is more equipped in establishing "one-to-many" and "many-to-many" broadband services.

VES-1316 supports various features that optimize broadband usage and data transfer efficiency; the IEEE 802.3ad protocol can effectively enforce the load distribution control and fail over recovery, and Internet Group management Protocol (IGMP) snooping protocol lifts the network load by limiting data transfer to only the subscribed IP addresses in multicasting sessions. As for network security, virtual LAN (VLAN) and 802.1x access control are supported to ensure data integrity and privacy.

VES-1316 and Prestige 871 samples are available now, and quantity production is scheduled to start in July. The ZyXEL VDSL solutions can be ordered via ZyXEL's global sales network, including direct from the company and through partnered service providers and distributors. To find a ZyXEL distributor nearest your location, please consult: http://www.zyxel.com/wherebuy/index.php.

About ZyXEL Communications
ZyXEL Communications Co. (TSE:2391), located in Hsinchu, Taiwan, is one of the world's leading broadband access solution vendors. ZyXEL's broad line of Internet Protocol-based (IP) networking solutions includes access multiplexors, customer premise equipment, Internet security and Wireless LAN equipment, enabling high-performance network services for SOHO, small to mid-sized businesses and service providers. ZyXEL works closely with worldwide network equipment vendors, telecommunications companies, ISPs, and other major businesses. For more information, visit the company's Website at http://www.zyxel.com.