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PHONEX QUIETS POWERLINE SKEPTICS BY UNVEILING FIRST PRODUCT THAT TRANSMITS DATA AT HIGH SPEEDS OVER HOME ELECTRICAL WIRING
Salt Lake City, UT - 06.26.2001 - Phonex Corporation, the Utah-based world leader of Power Line Carrier (PLC) voice and data communication devices, announced today that the world’s wait for the first high-speed home networking powerline product is finally over. The company will be the first to market with the only consumer installable device that can transmit data at up to 14 Mbps speeds over home electrical wiring when it unveils its new NeverWire 14™ at PC Expo on June 26 in New York City.

NeverWire 14 is the only freestanding powerplug-to-Ethernet data network device that turns any AC outlet into a 10 BASE-T Ethernet port, transmitting voice and data signals over standard electrical wiring. The product, which the user simply plugs into any networkable device and then into an AC power outlet, makes broadband powerline home networking available from any Ethernet protocol device including cable modems, PCs, set-top-boxes, and residential gateways. NeverWire 14, which uses Intellon Corporation’s Power Packet™ chip technology and is compliant with the HomePlug Powerline Alliance 1.0 specification, will be the first high-speed networking device to extend the reach of the Internet and broadband access networks to every electrical outlet within the home.

"The HomePlug Powerline Alliance values its contributing members, like Phonex Corporation, for helping validate the Alliance's 1.0 specification," said Alberto Mantovani, president of the HomePlug Powerline Alliance and Division Director at Conexant Systems. "The new industry specification, along with products like the NeverWire 14 will contribute significantly to the acceptance of the powerline as a genuine communications solution for home networking."

Recognized as the only developer and manufacturer of an established narrowband powerline product already being used in 3.5 million homes, Phonex Corporation has over 12 years experience developing PLC networking devices. "Phonex has been shipping narrowband products that transmit voice and data over 110v electrical wiring for more than a decade," said Phonex president and CEO, John Knab, "and we have now augmented that narrowband technology into a broadband product that provides a turn-key solution. The jump between developing chips and bringing a reliable consumer product to market has proved difficult for most players in this industry, but we’ve been working with the powerline medium since 1988, so Phonex enjoys a significant learning curve advantage."

Applications for high-speed home networking within the new digital home are surfacing every week. But, as Knab points out, wiring and installation of these applications has been the real bottleneck in getting them to the greatest number of potential customers necessary to hit critical mass. "NeverWire 14 provides ultra high-speed communication through an already established, and pervasive worldwide network of residential powerlines, eliminating the installation bottleneck," said Knab. "It opens the gate and allows these new digital home products to accelerate into the market because wiring and installation issues are no longer a barrier." Because of this, Knab says, NeverWire 14 has the potential to make several other company’s products successful.

"Phonex Corporation’s focus now is to create value and to solve installation problems," Knab said, "and with senior management that comes from companies like IBM, Verizon, and L3, we have a large corporate background and the know-how to interface with our significant technology partners." Initial shipments of the NeverWire 14 products are planned for Phonex Corporation’s technology partners. Volume shipments to the general consumer market will begin fourth quarter, 2001. The product has a U.S. suggested retail price of $99.95 per node.

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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