ARESCOM Nets $20 Million From Private Stock Issuance

FREMONT, CALIF. — SEPT. 26, 2002 — ARESCOM INC., a global provider of High Speed Internet Access (HSIA) equipment and related services for the hospitality, residential property, telecommunication and ISP markets, recently secured $20 million in funding from the issuance of private stock.

In related news, the Fremont-based firm named Cheng Wu, a former CISCO Systems exec and proven entrepreneur, Chairman of the Board, and appointed global telecom expert Eric Van Zele to its Advisory Board.

Max Lu, ARESCOM President & CEO, said private investors’ recent vote of confidence in the closely held company and these two key executive hires underline the strength of ARESCOM’s financial base and strategic growth plans.

“We are in a select class in our competitive set because we have positive net income, positive cash flow and positive EBITDA [Earnings Before Taxes, Depreciation and Amortization],” Lu said. “Our company’s low-cost provider position and unwavering commitment to developing and delivering world-class wired and wireless HSIA solutions will continue to help ARESCOM attract investors, systems integrator partners, clients and industry leaders such as Mr. Wu and Mr. Van Zele as fellow team members.”

Proven helmsman
In addition to serving as ARESCOM Chairman, Cheng Wu is Chairman of Acopia Networks, a position he has held since departing his executive post at Cisco Systems in January, 2002. Acopia Networks is a development-stage company focusing on next-generation storage networking products.

With Cisco Systems from 2000 through 2002, Wu served the company in various executive positions, including: VP - Strategy, and Group VP & GM of Cisco’s Content & Multiservice Edge (CME) Group. Prior to joining Cisco, Wu was Chairman and CEO of ArrowPoint Communications. Founded by Wu in 1997, ArrowPoint Communications — a leading provider of Web switches and Web network services (WebNS™) software optimizing the use of the Internet for e-commerce and content delivery — was acquired by Cisco in 2000 for $5.6 billion.

Prior to steering the successful Arrowhead start-up, Wu served as VP of Remote Access Engineering for Cascade Communications, now Lucent Technologies. Wu also co-founded Arris Networks, a Massachusetts-based start-up that developed high-density Internet access products. Founded in October, 1995, Arris was sold to Cascade for $150 million just seven months after its founding.

Highlighting his 20-year career in the networking and communications industry, Wu was named to InteractiveWeek Magazine’s “Top 25 Unsung Heroes of the Internet” list in 2000, and was named the “Key Industry Player” by the Massachusetts Telecom Council in 2002. Wu earned a bachelor’s degree in electrical engineering from ChiaoTung University in Taiwan in 1972, and a master’s degree in computer science from Indiana University in 1977.

Key Advisor
Eric Van ZeleARESCOM’s newest Advisory Board member, Eric Van Zele joined Telindus — the leading European expert in data communications and network integration — in January 2000 and is currently President and CEO of the Telindus Group and Managing Director of Telindus N.V. Before joining Telindus, Van Zele served as Corporate Vice President for Raychem Corp, a Menlo Park, Calif.-based subsidiary of Tyco Electronics, the world’s leading passive electronic components supplier. Prior to that, he held key positions as General Manager of the Telecom Division and Managing Director of Raychem N.V. (Kessel-Lo, Belgium).

Van Zele, who currently serves on the board of directors of Barco (Kortrijk, Belgium) and Pauwels Trafo (Mechelen, Belgium), holds a master’s degree in civil engineering (KU, Leuven, Belgium, 1972) and bachelor’s and master’s degrees in business administration from Stanford University (1979 and 1992).

World-Class People & Products
Dave Egan, ARESCOM VP Marketing, said the company’s success is largely attributable to its uncanny ability to attract, develop and market world-class people and HSIA products.

“At ARESCOM, we’re working hard to put hospitality back in High Speed Internet Access,” Egan said. “We have taken great time and care to listen and learn from our clients, and we have invested significant resources to deliver just what they’re asking for: A true HSIA partner, uniquely positioned with talented people and proven products, to deliver unmatched bottom-line benefits to all involved parties.”

About ARESCOM
Founded in the Silicon Valley, in 1996, ARESCOM designs, manufactures and markets a comprehensive line of broadband access solutions, ranging from the most sophisticated turnkey wired and wireless High Speed Internet Access solutions for the booming worldwide hospitality market, to state-of-the-art DSL and wireless solutions for homes and small businesses. Currently, ARESCOM’s DSL broadband access equipment is widely deployed by major telecommunication carriers, REITs, Hotels, ISPs and SOHOs throughout the U.S., Asia and Europe.

Media Contacts:

###

© Copyright 2002 ARESCOM Inc. ARESCOM is a trademark of ARESCOM Inc. All other referenced product names are trademarks of their respective companies