Coyote Signs Agreement to Deliver VoIP Directly From Telephone - Company Business and Marketing

Cambridge Telcom Report, March 27, 2000

Coyote Network Systems, Inc. (Nasdaq: CYOE), a next generation service provider, Thursday announced it has entered into an exclusive agreement with e-tel corporation to deliver standards-based Voice over Internet Protocol (VoIP) technology directly to smart-card enabled screen phones. Coyote expects to begin deploying VoIP solutions this summer.

"We believe this agreement will provide our customers with the first standards-based VoIP solution originating at the telephone handset," said James R. McCullough, chief executive officer, Coyote Network Systems. "By packetizing voice from the point of speech using the common telephone platform, we can offer the economics of data transmission through the last mile to our customers."

"Together, Coyote and e-tel, understand how to realize the potential of IP telephony as a strategic tool for the cost effective delivery of voice and Internet-based e-commerce applications directly to the customers desktop or kitchen counter," said Matt Lukens, president, e-tel. "We believe our IP phones will allow Coyote to successfully deliver next generation telephony and Internet e-commerce-based applications to their customers before the rest of the industry in a reliable easy-to-use platform."

Under terms of the agreement, which is subject to certain conditions, e-tel will provide Coyote with a standards-based VoIP solution, including integration and design into a single unit of e-tel licensed technology and software applications from screen phone to DSL (digital subscriber line) technology.

e-tel develops voice-over-IP phones, IP appliance phones and low-density residential VoIP gateways. e-tel's FreeRide VoIP phones range from a simple, single line IP telephone to a multi-featured screen model. They are available with a separate standard telephone line interface for routing calls over an IP network or the existing public switched telephone network. Operating much like a standard telephone, each model includes advanced features such as local and remote configuration, using either a Web interface or Simple Network Management Protocol. e-tel's VoIP phones are H.323 standard compliant and will offer optional support for MGCP and SIP.

Based in Westlake Village, CA, Coyote Network Systems is positioned to take advantage of high growth opportunities in the delivery of next generation telephony and Internet services and voice over IP. For more information, visit the Company's Web site: www.cyoe.com, or call 1-800-588-3000.

e-tel corporation is a leading developer and manufacturer of voice-over-IP phones, IP appliance phones and low-density residential VoIP gateways. e-tel is a privately held venture capital financed company based in West Warwick, RI. For more information on e-tel, visit the Company's Web site: www.e-telcorp.com or call 401-826-1520.