Free Home Networking Detailed in Ubicom Briefing Paper; Revenue From Customer Applications Will Entice Broadband Providers to Offer Free Home Networks

Business Wire, June 15, 2001

Business Editors/High-Tech Writers

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--June 15, 2001

As the latest in its series of executive briefing papers, Ubicom, Inc. today announced the on-line availability of a paper, Free Home Networking -- Coming Soon, that discusses the potential for free home networking to be provided by broadband service providers. Ubicom is a leader in providing Internet Processors and networking software that enable ubiquitous communication.

Ubicom believes that TV cable, satellite-dish, DSL and other broadband providers will provide or underwrite free home networking for two economic reasons. First is their desire to lock-in customers ahead of growing competition. Second is the "pull" of current revenues from such applications as sharing of home computer peripherals, entertainment, home security and on-line interactive games. Such a strategy is a variation of the old razor blade marketing scheme of giving away the razor to make money selling the blades. The broadband providers will provide home networking to obtain on-going service revenues.

"The current situation is unusual because of the existence of in-place `killer applications' simultaneously creating user demand and vendor revenue," said Stephan Thaler, vice president of Marketing at Ubicom. "Thus, giving away or underwriting the cost of home networking by the providers makes sense. We see home networks with a broadband access point as the next logical progression in networking."

The full case for free home networking is detailed in Ubicom's Executive Brief, Free Home Networking -- Coming Soon. The short, easy-to-read background document details the scenario and potential revenue that will drive free home networking. The document can be found on-line at www.ubicom.com/news/executive_releases.html.> Related information on home networking can be found on the Web at:

          --  Ubicom -- www.ubicom.com
          --  Bluetooth(TM) wireless technology -- www.bluetooth.com
          --  Home Audio Video Interoperability (HAVi) -- www.havi.org
          --  HomePhoneline Networking Alliance (HomePNA(TM)) --
            www.homepna.org/index.asp
          --  Universal Plug and Play (UPnP) -- www.upnp.org
          --  HomePlug(TM) -- www.homeplug.org

Ubicom, Inc.

Headquartered in Mountain View, Ubicom, Inc. enables ubiquitous communications. Ubicom is the leading supplier of Internet Processors and protocol stacks that will connect billions of devices to the Internet. Ubicom implements communications and control functions as pre-built software modules that run on the Internet Processors. This approach reduces time to production and system cost, while providing greater flexibility, compared to traditional design approaches.

Additional information on Ubicom and its products can be found on the Web at www.ubicom.com.

(TM) Bluetooth is a trademark of the Bluetooth SIG, Inc., U.S.A., HomePNA is a trademark of The Home Phoneline Networking Alliance, and HomePlug is a trademark of the HomePlug Powerline Alliance