Vienna, Austria Completes Installation of 400 km Fiber Optic City Infrastructure Exclusively Using Its Own CableRunner Flexible Technology

Business Wire, March 31, 2003

Business Editors/High-Tech Writers

BOCA RATON, Fla.--(BUSINESS WIRE)--March 31, 2003

CableRunner North America, LLC:

-- City Also Commences Next Phase for Emergency Services

-- Installation Showcases a Truly Independent City Network that

Serves as a Model for Local, State and Federal Governments and

is an Inexpensive Alternative for Telecom Companies

CableRunner North America, LLC, a public/private business venture part owned and operated by the City of Vienna, Austria, Water and Sewer Department (Wien Kanal Abwassertechnologien GmbH -- WKA) and a leading fiber optic infrastructure provider, announced today that the company's new Flexible(TM) system has been used to extend high speed services for home, business and government use in the City of Vienna, Austria.

The installation was added onto Vienna's existing city network that was initiated in 1999 and that was built using the City's own CableRunner(TM) technology. The addition brings Vienna's total fiber optic infrastructure length to 400 km, housing nearly 20,000 km of fiber installs, making it one of the largest independent city networks in the world, entirely built by the City and exclusively using the City's own technology.

CableRunner NA also announces Vienna's commencement of the next phase of installation, called doc.net, that will connect 30 hospitals, most of the City's emergency centers, pharmacies, administrative buildings and 911 call centers. Estimated completion of doc.net is within two years. "doc.net is a huge undertaking for Vienna, but the outcome is priceless -- saving lives and expediting emergency services," states Helmut Kadrnosk, CEO, WKA. "doc.net will be completely installed using our own CableRunner Flexible technology."

Both the latest installation and doc.net utilize the Flexible system's advanced technology for backbone and access builds in both man and non-man accessible existing city infrastructures. Vienna is showcasing and promoting its city-owned network as a private, secure fiber optic infrastructure that most city, state and federal governments can install themselves and even profit from. Vienna uses portions of its network for its own private sharing of critical government information, public access to e-gov initiatives, and generating revenue by leasing to telecom companies and other providers. In its first year of operation, the City recorded new revenue of approximately $20 million.

According to Claudia Nettig, president and CEO, CableRunner NA and official North American representative of the City of Vienna, Austria, "The City of Vienna has taken the initiative to solve one of the major problems that cities face, that is, being in control of our own city infrastructures, specifically city networks. That means implementing a new business model that puts the city in charge of its assets and to even generate new revenue streams as we have done in Vienna. Cities not only gain independence from telecom companies, but those companies now have a ready-made, inexpensive alternative to provide connections by leasing a portion of the city's network. Vienna is now capable of guaranteeing the security of the network, simply because the City owns the network and can better manage threats against it. Not only do we have a proven business model but we also developed the entire technology to back it up. We are making this available to cities and other government entities worldwide. This is the message we want to share, that the solution already exists."

Vienna is already planning additional phases for its city network that will include enhanced redundancy for emergency services especially for governmental and public institutions. The City also plans to hold educational sessions on a city-by-city basis that will educate cities on the necessity of owning their own network.

The Flexible system has none of the drawbacks inherent with conventional fiber optic deployment and is installed at a fraction of the cost. Offering maximum flexibility, the Flexible system is easily scalable, upgradeable and interchangeable. The Flexible system deploys fiber using state-of-the-art materials and equipment that are developed and tested by city engineers. The system works with common fiber optic cable and/or micro cable for backbone, modular cable system for access, and any kind of fiber regardless of manufacturer.

About CableRunner North America, LLC:

CableRunner North America, LLC is part owned and operated by the City of Vienna, Austria, Water and Sewer Department. CableRunner NA is dedicated to product innovation, education and offers unique solutions for deploying fiber optic cable in existing city infrastructures in congested metropolitan areas. The company has partnerships with leading international companies to develop customized solutions. CableRunner NA products and services have been used safely and successfully worldwide. See www.cablerunnerusa.com.

Note to editors: CableRunner and Flexible are trademarks of CableRunner North America, LLC. All product and company names mentioned herein may be trademarks and/or registered trademarks of their respective companies.