Lynk Announces a Major TeleLynk IP Telephony Distribution Contract with Daewoo International Corporation

Business Wire, July 26, 1999

MISGAV, Israel--(BUSINESS WIRE)--July 26, 1999--

Lynk (International) Ltd., a subsidiary of Better Online Solutions BOS, announced that it has entered into a two year multi-million dollar contract with Daewoo International (America) Corp. ("Daewoo"), a leading multinational general trading company.

The terms of the agreement -- executed by Lynk USA -- call for Daewoo to distribute Lynk products with an emphasis on TeleLynk, Lynk's leading edge IP telephony solution for business and the enterprise. In addition, Lynk has agreed to grant Daewoo exclusive master distributorship for Lynk products in Korea and Poland, and will continue to hold negotiations with Daewoo for exclusive master distributorships in Brazil and elsewhere in South America and for non-exclusive master distributorship in Japan. The agreement is expected to increase Lynk sales by more than 20,000 telephone ports within the first year.

Lynk's IP telephony systems are flexible standards-based solutions that enable local and remote workers to make IP telephony calls using their regular desktop telephone, cellular phone or laptops over the Internet, corporate wired or wireless data network or satellites. The TeleLynk product line includes a series of gateways which employ a powerful combination of hardware and software technologies to transmit remarkably crisp voice quality over IP networks.

"We are extremely excited at the opportunity of working with Lynk," said Hong-Key Jhun, President of Daewoo. "The TeleLynk IP gateway will provide our clients with the ability to add secure, high quality, IP telephony capabilities to their existing network infrastructure with a minimum of technical knowledge. We have looked at other systems available in the marketplace and have found none that can compete with TeleLynk on both quality and cost," continued Jhun.

Daewoo will act as Master Distributor for Lynk products in the North American (US/Canada) market on a non-exclusive basis. Daewoo's North American Sales network of 20 plus sales representatives will be trained by Lynk technicians and will market and distribute Lynk products directly to Daewoo's client base, the majority of which are Fortune 200 companies.

"We have believed all along that the TeleLynk product would gain significant success in the IP telecommunications marketplace," said Jacob Lee, CEO of Lynk USA. "This agreement with Daewoo gives us an active distribution channel using Daewoo's sales network which consists of 200 branch offices world-wide, allowing Lynk to increase market share dramatically in the short term as well as in the long term," continued Lee, who is also CEO of Pacific Information Systems, Inc. (Pacinfosys), BOS' largest subsidiary.

According to Avi Oron, President of Lynk International, sales of Lynk products by Daewoo have already commenced and significant orders are expected in the near term. Lynk is also engaged in discussions with potential technology partners as well as distribution partners which have a strategic presence in other countries and the company expects to complete additional large-scale distribution and cooperation agreements involving TeleLynk within a few months. In the near term, Lynk will announce agreements with service providers and carriers looking to introduce enhanced services and new applications including E-commerce and pre-paid applications using Lynk's IP telephony technology.

Lynk, a subsidiary of BOS (NASDAQ:BOSCF), develops and supplies high-quality, end-to-end IP telephony; voice, fax and data access convergence; and remote access solutions for the corporate market. Lynk's Gateways are high-quality business-class solutions which integrate a rich set of elements under one umbrella such as PBX functionality, gatekeeper intelligence, client software and advanced security systems, together with Web-based management for centralized management of all elements. Using TeleLynk Gateway, businesses realize considerable savings in long distance and international telephone tolls as well as operational costs.

More information on Lynk and its products can be found on the World Wide Web at www.telelynk.com