ARESCOM, INC. Announces Record Revenue Growth from Global DSL CPE Sales

Fremont, CA- December 4, 2001 - ARESCOM, INC., a global provider of DSL Internet access equipment for Telcos, ISPs, and SMEs, today reported that the Company has demonstrated record revenue growth from worldwide DSL CPE sales in the fiscal years 1999 - 2001. ARESCOM has shown a rapid revenue growth rate of more than 250% over a short three-year time span.

Revenues for the fiscal year 1999 began at $1.4 million and then rocketed to $13.7 million by the end of fiscal year 2000. In the current year, ARESCOM has continued to demonstrate consistent annual revenue growth, reaching a new plateau of $31.1 million in the year 2001. In the coming year, ARESCOM expects continued annual revenue growth in excess of $100 million for the fiscal year 2002.

Commenting on the ARESCOM growth phenomena, ARESCOM CFO Scott Arey said: "In the current economy, there are few Silicon Valley companies with both strong revenue growth and positive cash flow. This makes the CFO's job relatively easy and I am very pleased to have joined the company at this point in its history."

ARESCOM attributed its consistent pattern of annual revenue growth in the last three years to its ability to provide customized DSL CPE solutions to its widespread international customer base, which is comprised of major telecommunication carriers, ISPs and SMEs throughout USA, Asia, Europe and South America. Currently, international customers generate over 40% of ARESCOM's overall revenue.

President & CEO Max Lu added: "The combination of our world-class engineering and software development organization, and the increase in the number of DSL subscribers worldwide, has enabled us to grow dramatically. We continue to provide our customers with best of breed DSL solutions, which has allowed them to deploy cost-effective DSL solutions to their subscribers".

About ARESCOM, INC.

Founded in the Silicon Valley, in 1996, ARESCOM designs, manufactures and markets a comprehensive line of DSL Internet access solutions, ranging from high volume DSL bridge/modem CPE solutions for the home and business user, to DSL service platforms for the MTU commercial and residential marketplace. Currently, ARESCOM's DSL CPE is being widely deployed by major telecommunication carriers, ISPs, and SMEs throughout the USA, Asia, Europe and South America. All ARESCOM DSL broadband access solutions include easy-to-use GUI-based remote management software packages for simplified setup and extensive network management capabilities.

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© Copyright 2001 ARESCOM Inc. ARESCOM is a trademark of ARESCOM Inc. All other referenced product names are trademarks of their respective companies