Company Contact: Joe Nufer Marketing Associate (510) 324-2501 FOR IMMEDIATE RELEASE Zypcom Inks Manufacturing License On Racal-Vadic Product Lines Zypcom, Inc. has acquired the exclusive U.S. rights to manufacture select Racal-Vadic modem and multiplexer products from Racal-Datacom. The exact amount of the transaction remained undisclosed. Zypcom will provide product manufacturing, repair services, marketing and sales to support all ongoing product sales to the installed base of Racal-Vadic customers. The brand name for all products licensed under this agreement will be changed to Zypcom. Newly acquired Racal-Vadic products include eight modems and a family of multiplexers---11 products in all. The VA2450, VA1251, VA1250, 1200VP and 2400LC are standalone modems and the VA2440, VA1244 and VA4840 are rackmount modems. They encompass 1200 bps full and half duplex supporting the Bell 212 and 202 standards, 2400 bps full and half duplex supporting Bell 201C and CCITT V.22bis, and 4800 bps full and half duplex supporting Bell 208 A/B. Applications range from point of sale applications that use handheld scanner terminals to IBM 3270 dial-up applications to the traditional PC to host database and electronic mail applications. The popular Racal-Vadic 7400-Series Multiplexers also acquired by Zypcom are asynchronous statistical time-division multiplexers that support from 4 to 16 ports with either a 9600 bps internal leased line modem with automatic dial backup or a 19,200 bps external modem or DSU with dial backup. In addition, the 7400-Series supports remote network management and diagnostic capabilities. Zypcom, Inc., a self-financed startup company based in Union city, California, is currently designing several new wide-area network and PC products. The agreement with Racal-Datacom to take over product support on these classic modems will give Zypcom the opportunity to develop desired relationships with Fortune 1000 customers and assist in building its distribution channel. Zypcom will also get an early start on its manufacturing operations. Scott Porter, Vice President of Sales and Marketing, said, "This deal with Racal will allow Zypcom to jump start its distribution channel and simultaneously provide long-time Racal-Vadic customers with a reliable source for their ongoing product requirements." Zypcom's channel strategy calls for 100% indirect distribution comprised of national resellers, strong regional data communications distributors and PC product resellers. Zypcom is currently concluding distribution agreements with all three types of distributors.

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ZYPCOM, Inc
29400 Kohoutek Way, Suite 170
Union City, CA 94587-1212
Tel: 510-324-2501 Fax: 510-324-2414