ARESCOM Establishes Strategic Partnership with China's Telecommunication Industry Giant PTIC to Offer Broadband Access Solutions in China

Fremont, California -February 7, 2001 - ARESCOM, INC., a global provider of broadband infrastructure equipment for telecommunication carriers, SOHOs, ISPs and BLECs, announced today that it has established a strategic alliance with China's telecommunication industry giant PTIC (China PTIC Information Industry Corporation) to offer its full suite of broadband infrastructure solutions throughout Mainland China. ARESCOM and PTIC will join forces to open up the budding ADSL market in China, to mutually establish a significant Chinese market presence there. Among the many available broadband access solutions in ARESCOM's product line that PTIC will deploy is ARESCOM's newest broadband infrastructure platform: the ARESCOM CDS 6000 DSL Service Platform. The ARESCOM CDS 6000 provides a complete set of affordable, scalable, and flexible multi-access and multi-service DSL access equipment that specifically targets the growing DSL market in China today.

PTIC's business partnership with ARESCOM is extremely broad in scope, including joint-technology development, joint-marketing and sales efforts and mutual OEM product manufacturing agreements. PTIC has further agreed to serve as ARESCOM's main product distributor in China. Both PTIC and ARESCOM believe this major international business alliance will be a win-win proposition for each party involved.

"The comprehensive cooperation between ARESCOM and PTIC is strategic," said Xu Mingwen, PTIC vice president. "We expect to promote PTIC's broadband access industry with this business alliance, and satisfy the need of ADSL market in China."

"We are extremely pleased that ARESCOM was chosen over its competitors to provide its DSL broadband access solutions to the number one telecom equipment manufacturer in the China market," said Max Lu, ARESCOM CEO and President. "The fact that we were selected by PTIC also demonstrates that ARESCOM can offer a more robust and advanced technology than our competitors. This major contract also is significant because of its business-wide scope: PTIC has chosen to cooperate with ARESCOM in the areas of joint-technology developments, joint-product manufacturing, as well as joint marketing and sales efforts. With this strategic business alliance with PTIC this year, ARESCOM is well-positioned to be the leading DSL equipment provider in the APAC region."

ARESCOM continues to develop their full line of broadband infrastructure equipment that comes equipped with cutting-edge features at a cost effective price, giving ARESCOM a definitive advantage over their competitors and empowering the users with comprehensive broadband solutions for all their home and office needs.

About PTIC
PTIC (China PTIC Information Industry Corporation) is currently China's largest telecommunication equipment manufacturer. Founded in 1980, the corporation owns multiple holding companies spread throughout China, direct manufacturing factories and over 100 subsidiaries and jointly invested enterprises. The corporation's total revenues were valued at five billion dollars (USD) for the year 2000. In 1998, British telecom magazine "Communications Week" ranked PTIC as 20th in the 50 largest telecommunication equipment manufacturer giants in the world. PTIC designs, manufactures, and markets an entire array of telecommunication equipment, including large-scale SPC exchanges, mobile phones and handsets, microwave communication equipment, optical communications equipment, optical and electric cables, power supplies, multimedia terminals, fax machines and postal appliances. PTIC also undertakes to contract overall national and international communications projects conduct joint venture cooperation, technology introduction, product import and export and other technical and business services.

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

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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