ARESCOM, INC. Reports Record Revenue and Earnings in Fourth Quarter 2001

Fremont, Ca - February 08, 2002 - ARESCOM, INC., a global provider of DSL Internet access equipment for Telcos, ISPs, SME's, and the Hospitality industry, reported today steady revenue growth and strong earnings results and profits in the fourth of the year 2001. In the last three years, ARESCOM has demonstrated a dramatic annual revenue increase of over 250% since the fiscal year ending December 1999.

Net revenues for the quarter ending December 31, 2001 reached $21.5 million, compared to net revenues of $16.8 million for the previous quarter ending September 30, 2001. Total net profits for the fourth fiscal quarter ended at $1.2 million. In this new fiscal year 2002, ARESCOM expects continued annual revenue growth in excess of $100 million.

Commenting on ARESCOM's continued revenue growth in the fourth quarter, ARESCOM CFO Scott Arey said: "This is the second strong quarter in a row for the company, which is one of the few companies in this industry able to boast positive net income, positive cash flow and a continued strong revenue growth trend."

A key factor to ARESCOM's sustained revenue growth is its widespread international customer base, which is comprised of major telecommunication carriers, ISPs, SMEs and Hotels throughout the United States, Asia, Europe and South America. Presently, over 40% of ARESCOM's overall revenue can be attributed to customers that currently deploy ARESCOM's customized DSL CPE solutions in their networks. In addition, ARESCOM has experienced strong demand for its complete line of MTU products in the domestic hospitality sector and expects accelerated growth in its wireless products through 2002.

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, residential and hospitality marketplaces. Currently, ARESCOM's products are 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 2002 ARESCOM Inc. ARESCOM is a trademark of ARESCOM Inc. All other referenced product names are trademarks of their respective companies