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PHONEX TO DEVELOP IP TELEPHONY AND DATA NETWORKING PHONE EXTENSIONS USING INTELLON'S 11 MBPS POWER LINE NETWORKING TECHNOLOGY
Mivale, UT - 05.17.1999 - Phonex Corporation announced today it has signed an agreement with Intellon Corporation under which Phonex will develop, manufacture, and market Internet Protocol (IP) telephony devices that extend the reach of the Internet and broadband access networks to every electrical outlet within the home. The new IP telephony and data network phone extension devices will be developed using Intellon's integrated circuits for high-speed networking with No New Wires™. The Intellon power line networking technology is the first to enable "toll-quality" Voice-over-IP (VoIP) at data rates up to 11 Mbps over existing home electrical wiring while encompassing the necessary requirements to support voice and data communication. Under the agreement, Phonex will develop and field test the new phone extension devices in the second half of 1999 with full-scale production targeted for the first half of 2000.

"Our partnership with Intellon enables Phonex to accelerate our product transition from analog to digital technology," said John Knab, president and CEO of Phonex Corporation. "Broadband access networks to the home and inside the home are the major focus of our customers. We believe Intellon's unique power line networking silicon solutions will be the standard by which all others will be judged."

"Phonex's market experience, distribution channels, and manufacturing capabilities make them a very valuable partner for Intellon's high-speed power line communications technology," said Horst G. Sandfort, CEO and president of Intellon Corporation.

Phonex's suite of industry standard phone extension products includes the original Wireless Phone Jack, which provides high quality voice and data over the AC lines of the home. Along with the Wireless Phone Jack, Phonex is also the manufacturer of wireless modem jacks, wireless Web jacks, wireless speakers, and international 220 volt wireless phone jacks using its patented wireless technology.

Intellon Corporation provides low-cost, high-performance digital, mixed-signal, and RF systems on silicon communication solutions for networking with No New Wires. Intellon's intellectual property, products, and technologies are key to a variety of open industry standards which utilize RF and the power line as low-speed control networks and as a high-speed communications media.

For more information regarding Phonex Corporation and its products please contact:
public@phonex.com
6952 High Tech Drive
Midvale, UT 84047-3756
800.437.0101

Founded in 1988, Phonex Corporation, based in Midvale, Utah, is a privately held company recognized as the world’s largest supplier of voice and data products over the powerline. Phonex’ proprietary technology enables telephone and data devices to communicate reliably using standard electrical wiring. The technology is strongly protected by multiple patents. Phonex is the first company worldwide to market a broadband networking device that turns any electrical outlet into a 10BaseT Ethernet portal.

Phonex Corporation and NeverWire 14 are trademarks of Phonex Corporation.
All other company names and trademarks are the property of their respective companies.

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