Telocity VelocityPort Gateway Honored With Prestigious Innovations Award by Consumer Electronics Association

Business Wire, Jan 6, 2001

Business Editors/High-Tech Writers

LAS VEGAS--(BUSINESS WIRE)--Jan. 6, 2001

Telocity Proprietary Gateway Awarded Best in Show for Home Data

Networking Technology At Consumer Electronics Show

Telocity, Inc. (Nasdaq:TLCT), a leading national provider of broadband services, announced today it received the Consumer Electronics Association (CEA)'s Innovations Award as the Best of Show for Home Data Networking for its Telocity VelocityPort(TM) gateway.

As one of CEA's highest honors, the Innovations Award distinguishes Telocity's proprietary gateway as one of the best-designed and engineered products in consumer technology. The award was presented in Las Vegas at the International Consumer Electronics Show (CES) on Jan. 6, 2001.

The Innovations Awards winners were evaluated by a panel of 22 prominent industry experts, and were selected based on the product's value to the user, aesthetics, contributions to the quality of life for consumers, as well as the product's innovative qualities.

"Telocity is honored and excited to be recognized by the Consumer Electronics Association as a leader in the home data networking marketplace," said Dave Finley, chief operating officer of Telocity. "The Innovations Award highlights both the excellence of our gateway design as well as its ability to offer cutting-edge broadband services to enhance the lives of our customers."

Telocity's proprietary residential gateway -- the Telocity VelocityPort(TM) -- is an in-home intelligent device that can be self-installed by the customer. This innovative technology is the only residential broadband gateway that enables services for subscribers via a remote connection. Consumers do not have to wait for a technician or open their computer.

Telocity's gateways contain new hardware and software features to enable home networking, home automation and the remote control of residential electronics, enhanced firewall security features, voice-enabled services, and much more.

While Telocity currently provides high-speed broadband services through digital subscriber line (DSL) technology, the Telocity residential gateway can be configured to support all major residential broadband access technologies including cable and wireless.

Telocity will exhibit these cutting-edge service offerings at CES Booth No. 5268 in North Hall 1 & 2 in Las Vegas from Jan. 6-9, 2001.

About Telocity

Telocity is a leading nationwide provider of integrated residential broadband services. Telocity improves today's dial-up, or narrowband, experience through faster and reliable services that enhance Internet surfing, shopping, and communications. Telocity intends to expand its broadband services to include packaged value-added services that may include secure telecommuting, home monitoring and automation, voice bundling, and entertainment. Telocity currently provides high-speed broadband services through DSL technology. As Telocity further expands its services, the company intends to choose the most reliable, flexible and cost-effective broadband access technologies (including DSL, cable, and wireless) available in each local market. Telocity's current broadband footprint covers more than 140 major U.S. Metropolitan Statistical Areas (MSAs) across the United States. For more information, contact Telocity by phone 408/863-6600; fax 408/777-1451; on the Internet at http://www.telocity.net; or by mail at 10355 N. DeAnza Blvd., Cupertino, CA 95014.

Safe Harbor Statement

Investors are cautioned that statements that are not strictly historical constitute forward-looking statements, including, without limitation, statements regarding value-added services and the expectations therefor, current or future financial performance, management's plans and objectives for future operations, product plans and performance, management's assessment of market factors, and statements regarding the strategy and plans of Telocity and its strategic partners. In accordance with the Private Securities Litigation Reform Act of 1995, important factors that could cause Telocity's actual results to differ materially from those expressed or implied by such forward-looking statements include but are not limited to the company's ability to secure additional funding to support its operations and future initiatives, the highly competitive and evolving nature of the broadband market, the successful deployment of Telocity's rollout plans and strategies, customer demand for Telocity's services in target markets, the pricing environment for Telocity's basic and value-added services, the success of the company's strategic relationships. Readers are encouraged to review Telocity's recent filings with the Securities and Exchange Commission, including Telocity's current quarterly report on Form 10-Q, Registration Statement on Form S-8, prospectus filed under Rule 428(b)(4), final amended Registration Statement on Form S-1, and its other filings with the Securities and Exchange Commission, copies of which may be accessed through the SEC's web site at http://www.sec.gov.