TEK DigiTel Introduces Dual Ethernet Version of V-Server iGATE
Helping Service Providers add VoIP support to Existing DSL, Cable and Wireless Internet Customers

GERMANTOWN, MD - August 25, 1999— In an effort to help Service Providers ease the costs of deploying VoIP solutions to their installed base of Cable, DSL (Digital Subscriber Loop) and Wireless Internet customers, TEK DigiTel Corp. (OTC BB: TEKI) is announcing a new "Dual Ethernet" version of the V-Server iGATE. Like the other currently shipping versions of the V-Server, the new CPE (Customer Premise Equipment) device combines data, voice and fax traffic over a single Internet connection for Ethernet attached computers and conventional telephony phones and PBXs. The chief difference is that the connection to the Internet is made using a second Ethernet port that connects into the LAN interface of the existing DSL/Cable/Wireless modem.

"Service providers who have a sizable deployment of Cable, DSL and Wireless Ethernet modems at their customer's sites are now dealing with the issue of how to add voice support and multiple PCs." explains Charles Brown, Vice President of Marketing at WaveRider Communications, the owner of JetStream Internet Services. "A dual Ethernet voice/data router at such a low price point that can be customer installed, will eliminate the cost of a service call to upgrade the existing modem."

GecKo Research & Publishing (http://www.hfc.net), publishers of a number of electronic newsletters and web sites tracking the industry including "Broadband Bob" and "IP Pulse" estimate that the combined worldwide installed base of Cable and DSL modem subscribers will reach almost 3.5 Million by the end of 1999. With a large proportion of these being data only, the opportunity for a low cost voice upgrade path is attractive to those service providers seeking to generate additional voice revenues.

By supporting two Ethernet interfaces, the new V-Server can also manage the QoS (Quality of Service) issues that plague add-on VoIP Gateway solutions. One approach to implementing voice support on an existing Cable/DSL subscriber is by adding a simple Gateway to share the modem's Ethernet interface with the subscriber's computer. Besides the $50-100 price of the hub needed to connect the three LAN ports, the inability of the hub to prioritize voice traffic over data often results in distorted speech and dropped voice packets when the computer seizes the Ethernet link for a large data file transfer. By connecting to both the computer and the telephone equipment, the V-Server can manage the traffic flow to deliver a single prioritized voice/data packet stream to the modem.

According to TEK Digital President Rocco DiCarlo, the Dual Ethernet iGATE is also an alternative to upgrading the existing DSL/Cable modem to a more expensive voice enabled version. "Integrated Access Devices (IADs) that combine the modems with the router/gateway are really only an option for new subscribers wanting both voice and data services," says DiCarlo. "Unfortunately, many subscribers will start with data only access leaving the service provider to manage the cost of initially supplying the more expensive voice-enabled modem without any guarantee that they will eventually sign up to their voice offering. Our new Dual Ethernet iGATE is designed to provide the service provider with more options."

Installation of the device is as easy as inserting it between the computer and the Cable/DSL/Wireless modem and letting its DHCP (Domain Host Control Protocol) support automatically learn the IP address. The integrated NAT (Network Address Translation) support allows a multiple PCs to share a single IP address eliminating the need for the service provider to be concerned about the number of computers used by each subscriber. This single IP address is also shared by the V-Server internal VoIP Gateway eliminating the second address often needed to allow the Gateway to receive incoming VoIP calls.

Limited availability of the iGATE Dual Ethernet for TEK DigiTel's partners is planned for early October, 1999 with volume shipments scheduled one month later. The product will have a list price of $1,299 (US).

TEK DigiTel’s equipment and supplemental services are designed to make IP telephony less expensive and complex for providers to provision and for users to adopt. TEK’s V-Server gateway/routers are user-installable and inexpensive enough for carriers to bundle with voice, data and Internet access services.

About TEK DigiTel Corporation (http://www.tekdigitel.com)

Based in Germantown, Maryland, TEK DigiTel Corporation delivers integrated CPE (Customer Premise Equipment) communications solutions optimized for use in SOHO, small- and medium-sized businesses. Working with Service Providers and OEM partners, the Company is focused on integrating fax- and Voice-over-IP (VoIP) technologies with conventional PBX systems and data routing devices to create a low- cost, easy-to-use Internet communications hub. Founded in 1998, TEK DigiTel is publicly traded (OTC BB: TEKI) and headed by a management team with extensive related experience gained at leading manufacturers and service providers including Motorola, 3Com, IBM, Nortel Networks, Rockwell, Hughes, MCI Worldcom, Bell Atlantic, Bell Canada, BellSouth, and GTE.

Statements in this news release looking forward in time involve risks and uncertainties, including the risks associated with the effect of changing economic conditions, trends in the development of the Internet as a commercial medium and carrier of telephony traffic, market acceptance risks, technological development risks, seasonality and other risk factors.