Shenzhen CATV Selects Terayon for Major Broadband Deployment in China

Shenzhen CATV Selects Terayon for Major Broadband Deployment in China

Business Editors/High-Tech Writers

SHENZHEN, China–(BUSINESS WIRE)–March 28, 2000

Terayon Communication Systems, Inc. (Nasdaq:TERN), a leader in broadband networking systems, has been selected by Shenzhen Topway Cable Net Co. Ltd. (Shenzhen CATV), one of China’s largest cable data net operators, for a major broadband deployment in China.

This announcement represents another key milestone for Terayon in the Greater China region, following the selection of its broadband systems earlier this year by i-CABLE, Hong Kong’s leading broadband service provider.

Shenzhen CATV, which currently serves more than 650,000 subscribers, chose Terayon’s broadband cable modem system in order to offer high-speed Internet access. The selection was based on the system’s high-performance, proven reliability and ability to operate over a wide range of cable networks and conditions, which enabled Shenzhen CATV to deploy the system very rapidly.

“Shenzhen is a huge high-speed Internet access market,” said Xie Jie Hua, director of Shenzhen CATV and managing director of Shenzhen Topway Cable Net Co. Ltd. “Users are increasingly receptive to a high-quality, reliable Internet access service.”

“In order to fulfill their needs, we were looking for more sophisticated access facilities to be used in the Topway network. That’s why we chose the equipment from Terayon because its products offer the reliability and quality we need for our end users.”

In the People’s Republic of China (PRC), Shenzhen has a special status as a technological innovation zone. This is significant because it represents one of the first cable modem deployments in Lo Wu, Shenzhen’s most densely populated area.

“We are excited to partner with such a forward-thinking cable operator as Shenzhen CATV. They are accelerating the broadband revolution in this high-tech region,” said Zaki Rakib, CEO of Terayon. “This launch in the most innovative, high-tech region in China, it is a keystone in Terayon’s strategy to become the broadband leader in Asia.”

“This broadband medium holds the key to delivering a range of rich information — from education and entertainment to e-commerce. The opportunities for Terayon in this region are significant, and we are expanding our presence in Asia Pacific to meet this strong demand,” Rakib added.

Shenzhen CATV is the latest in a growing number of Terayon’s cable operator customers based in the PRC. Consumers in more than 20 cities, including Dongguan, Foshan and Zhuhai currently enjoy high-speed Internet access using Terayon’s cable modem systems.

In addition to its growing presence in the Greater China region, Terayon’s cable modem systems have also been deployed in several other Asian countries. The most notable of these is Japan, where Terayon’s customers include Jupiter Communications, Japan’s largest cable operator.

Shenzhen CATV can be found on the web at www.shenzhencatv.com. Shenzhen Topway Cable Net C. Ltd. can be found on the web at www.topway.net.cn

Terayon’s cable modem system is an end-to-end system that provides high speed, two-way communication over cable television networks. Composed of a cable modem for consumers’ residences and equipment for a cable network’s main office, the system is based on the company’s S-CDMA (Synchronous Code Division Multiple Access) technology.

S-CDMA is a spread spectrum technology that enables reliable two-way communication across a broad range of cable network architectures and conditions.

Terayon Communication Systems provides innovative broadband networking solutions for advanced broadband voice, data and video services. The company’s cable data access systems, digital video systems, and broadband telephony systems are deployed by leading cable operators worldwide.

The company’s xDSL access systems deliver innovative telephony and data solutions for the growing SOHO business market. Terayon, based in Santa Clara, Calif., has sales and support offices worldwide, and is traded on the Nasdaq under the symbol TERN. Terayon can be found on the web at www.terayon.com.

“Safe Harbor” Statements under the Private Securities Litigation Reform Act of 1995:

Except for the historical information contained herein, this news release contains forward-looking statements, estimates, and assumptions by the Company and other parties that involve risks and uncertainties, including the Company’s ability to successfully integrate any acquired companies, the Company’s ability to gain new business and offer new products, the expansion of operations by the Company’s customers and the deployment of the Company’s products in specific markets, as well as the other risks detailed from time to time in the Company’s filings with the SEC.

Note to Editors: Terayon, the Terayon logo, TeraPro, TeraLink, and TeraComm are registered trademarks of Terayon Communication Systems, Inc. TeraView and CherryPicker are trademarks of Terayon Communication Systems, Inc. All other trademarks are property of their respective owners.

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