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Telaxis Fiberleap Capability Confirmed in Bechtel Lab Product for Network Edge Extends Metro Reach

Fredrick, MD - January 9, 2002
Bechtel Telecommunications, a unit of Bechtel Corporation and a leading network engineering and construction firm, and Telaxis Communications Corporation (Nasdaq:TLXS - news), announced results of testing that validates Telaxis FiberLeapTM fiber optic network extension product. Testing conducted at the Bechtel Telecoms Training, Demonstration, and Research (TDR) Laboratory here confirms the FiberLeapTMproducts ability to transmit optical signals at OC-12 data rates (622 Megabits per second) via a wireless link for "last-mile" connections to fiber optic networks. 
 
FiberLeapTM is designed to extend the reach of fiber optic networks through wireless connections where installation barriers and cost make installing additional fiber connections less desirable. FiberLeapTM access units form a wireless link designed to function, and to be managed and serviced, as if it were a length of fiber optic cable.

"The fiber network simulation and rigorous analysis conducted at our TDR Lab confirmed the operational characteristics of FiberLeapTM access units in a variety of network environments," said Bechtel Telecoms Chief Technology Officer Jake MacLeod. "Testing at our lab specifically proved the transparency of the FiberLeapTM product in SONET, ATM, and Ethernet environments. This transparency allowed FiberLeapTM to provide last-mile connectivity to fiber optic networks. "

"Solving the last-mile connectivity problem is the first order of business to enhance the value of existing fiber infrastructure," said Steve Ward, Telaxis Executive Vice President of Marketing and Sales. "Installed fiber rings currently connect to less than 10 percent of business buildings in metropolitan markets due to cost, right-of-way, and other barriers. Low-cost wireless connections from a fiber ring distribution point can greatly increase the market addressable by the existing fiber ring. Our FiberLeapTM product family will use Telaxis high-frequency, millimeter-wave expertise to provide that connection reliably."

Ward continued, "We chose Bechtel to perform the first independent verification of the FiberLeapTM product due to Bechtels ability to simulate metropolitan environments and a wide range of distribution and receiver options in its TDR Lab."

The initial FiberLeapTM product, operating in the unlicensed 60 GHz band, is designed to deliver voice, video, and data signals from fiber optic network distribution points to wireless access units 500 to 1,000 meters away with 99.999 percent availability, without deterioration of signal, Ward said. Distances increase significantly with availability of 99.99 percent or lower. FiberLeapTM is also designed for fast, low-cost installation using industry-standard optical interfaces.

Bechtels TDR Lab facilities provide support for wireless and wireline technologies including Voice over Internet Protocol (VoIP); Free Space Optical Networking; high-speed Ethernet; 2G/3G and CPE wireless network interfaces; voice, video, and data traffic and link budget engineering; ATM switching; PTP and PMP microwave; LMDS; MMDS; UNII, and IEEE 802.11a/ and b WANs. The TDR Lab will help carriers and equipment vendors to quickly integrate evolving technologies into their networks, and speed revenue generation.

About Bechtel Telecommunications
Bechtel Telecommunications is a unit of Bechtel Corporation, a privately held company headquartered in San Francisco, with 50,000 employees, more than 50 offices worldwide, and 2000 revenues of $14.3 billion. Bechtel Telecommunications provides design, engineering, project management, and construction management for a full range of telecommunication systems, through major offices in London, São Paulo, Hong Kong, and the Frederick, MD world headquarters.

About Telaxis Communications
Telaxis is developing its FiberLeapTM product family to enable direct fiber optic connection to wireless access units and to transparently transmit fiber optic signals over a wireless link without the use of conventional modems. Taking advantage of Telaxis' high-frequency millimeter-wave expertise, the FiberLeapTM product family is being developed to use the large amounts of unallocated spectrum above 40 GHz to provide data rates of OC-3 (155 Mbps), OC-12 (622 Mbps), Gigabit Ethernet, and higher.