Hybrid Networks Will Be First To Integrate Intel's Demodulator Chip Into Fixed Broadband Wireless Equipment

Market Wire, October, 2000

Hybrid Networks Inc. (Nasdaq: HYBR), the worldwide leader in MMDS (Multichannel Multipoint Distribution System) fixed broadband wireless Internet access systems, today announced it will be the first to integrate Intel Corporation's 3804 demodulator chip into its head-end equipment that will enable it to provide customers with near/non line-of-sight Internet access capabilities.

Hybrid will increase the circuit density and upstream bandwidth capacity of its fixed broadband wireless systems, and will offer a new technological solution to near/non line-of-sight issues. The new technology will be available in Hybrid Network's products by mid-2001.

"Working with Intel, we have developed a solution for companies looking to deliver fixed broadband wireless service in areas where the transmitter doesn't have a clear line of sight to the transceivers on their customers' homes and businesses," said Michael D. Greenbaum, president and CEO of Hybrid Networks. "With the new technology, our customers will also be able to provide more service with each head-end system, increasing their customer capacity and reducing operating costs."

"Hybrid and Intel have enjoyed a long-standing relationship through the use of Intel's head-end technology in their field-proven wireless broadband systems. We are pleased to continue this relationship by working together to deploy this breakthrough technology. The system is based on our new equalized 16QAM/QPSK receiver and will incorporate Intel's maximum power combining diversity technology," said Allen Edwards, general manager of Intel's Cable Network Organization.

About Hybrid Networks

Headquartered in San Jose, Calif., Hybrid Networks Inc. designs, develops, manufactures and markets fixed broadband wireless systems that enable telecommunications companies, wireless systems operators and network providers to offer high-speed Internet access to businesses and residences. Hybrid was first to market with patented two-way wireless products that focus on the MMDS spectrum and WCS spectrum in the United States and similar spectrum abroad. The company's customers include Sprint, WorldCom, Look Communications and Andrew Corp. Hybrid is part of more fixed broadband wireless deployments than all of its competitors combined.

For more information, call (408) 323-6215 or visit www.hybrid.com.

Some of the statements in this news release regarding Hybrid Networks, Inc. are forward-looking statements, and we caution our stockholders and others that these statements involve certain risks and uncertainties. Factors that may cause actual results to differ from expected results include, but are not limited to, the proposed rollouts not proceeding as currently anticipated, our need to raise additional working capital, the effects of competitive products and pricing, economic and political conditions that may impact customers' ability to fund purchases of our products and services, the company's ability to achieve the costs savings anticipated from cost-reduction programs, fluctuations in international exchange rates, the timing of cash payments and receipts, end-use demands for wireless communication services, and other business factors. For information regarding these risks and other related risks, see the "Risk Factors" section of Hybrid's most recent Form 10-K and Form 10-Q on file with the SEC.