e-tel corporation Signs Agreement With AG Communication Systems to Offer Voice-Over-IP Solution

Business Wire, Feb 7, 2000

Business/Technology Editors

WEST WARWICK, R.I.--(BUSINESS WIRE)--Feb. 7, 2000

e-tel corporation, the pioneering developer of the industry's first H.323 compliant voice-over-IP (VoIP) telephone, today announced that it has been selected to supply AG Communication Systems, a subsidiary of Lucent Technologies (NYSE:LU), with Internet protocol (IP) telephones.

Under the agreement, AG Communication Systems will jointly market its iMerge(TM) Centrex Feature Gateway (CFG) with e-tel's FreeRide(TM) VoIP telephone system. AG Communication Systems' iMerge CFG will add e-tel's FreeRide line of phones to its portfolio of end-user equipment that delivers IP telephony directly to the customer's desktop.

&uot;This is the dawn of the new age of IP telephony,&uot; said Matt Lukens, president of e-tel. &uot;Now, for the first time ever, Class 5 services can be delivered direct to the customer's desktop using the combination of the iMerge gateway and e-tel's FreeRide VoIP telephones. This marks the transition from the circuit-switched telephone network of the last century to the Internet-based network of the new millennium.&uot;

&uot;e-tel plays an important role in our ability to provide the industry's most complete selection of customer premises end-user solutions,&uot; said Ken Arndt, vice president of marketing for AG Communication Systems. &uot;e-tel's broad range of IP telephones have made them a crucial part of our family of IP telephony strategic partners.&uot;

iMerge helps carriers offer rich Centrex functionality to end-users using voice-over-IP as a cost-effective transport mechanism. This allows carriers to utilize their new IP networks as strategic assets, while at the same time, preserving the value of the investment they have in their existing central and back office infrastructure and staff.

iMerge extends Class 5 Centrex features over IP networks and reuses the Class 5 infrastructure. This preserves the huge investment in hardware, software, interfaces, adjunct platforms, and the highly trained staff that keeps this infrastructure humming, allowing carriers a smooth, low-impact transition into new packet-based services. iMerge allows carriers to offer high-value services over efficient packet networks and enables new applications, including: Centrex IP, remote multi-location Centrex IP, and virtual call centers. It works with any Class 5 switch, including Lucent's 5ESS(TM) Switch, Nortel's DMS-100 or AG Communication Systems' GTD-5.

e-tel's FreeRide VoIP phones range from a simple, single line telephone to a multi-featured screen model. They are available with an additional standard telephone line interface for routing calls over an IP network or the existing telephone network. Operating like a standard telephone, each model includes advanced features such as local and remote configuration, using Web, SNMP and CTI device management interfaces. e-tel's VoIP phones are fully H.323 standard compliant. Support for MGCP and SIP is optional. The phones also offer multiple codec support, including G.711, G.723.1, G.729A and G.729B, and integrate cleanly with existing network infrastructures.

About e-tel

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 its website at www.e-telcorp.com or call 401-826-1520.

About AG Communication Systems

AG Communication Systems (www.agcs.com), a subsidiary of Lucent Technologies, is a leading developer and manufacturer of advanced communication products and services, including switching, access, video, wireless and intelligent network products. AG Communication Systems' GTD-5 digital switching systems serves more than 17 million business, government and residential subscribers.

This press release contains forward-looking statements that involve a number of risks and uncertainties, including references to the success of new products and the transition between the sale of old products and the sale of new products. Readers are cautioned that all forward-looking statements are subject to risks and uncertainties, including, without limitation, the timing of new announcements or introductions by the Company and its competitors, the hiring and retention of key employees, competitive pricing pressures, the manufacturing of products, the need for capital, dependence on third parties for manufacturing, components and products, general economic conditions in the United States and international markets, and the risk factors detailed from time to time in the Company's periodic reports and registration statements filed with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.