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Phonex Corporation Announces Price Reduction for NeverWire 14 Powerline Home Networking Device

-New manufacturing efficiencies enable aggressive price move for advanced powerline technology-

MIDVALE, Utah December 02, 2002 - In a move that is expected to quickly expand the market for "powerline carrier" devices, Phonex Corporation TM Corporation (www.phonex.com) today announced a price reduction for the company's NeverWire 14 QX-201 TM home network device. Effective immediately the price of the NeverWire 14, the industry's only true plug-and-play home network device, is moving from US$129 to US$99. In addition, Phonex is now making the NeverWire available as a two-unit set for $US$189.

The NeverWire 14, which launched in the U.S. market in June 2002 and in the international market shortly thereafter, is a HomePlug 1.1-compliant device that uses "powerline carrier" technology to make use of the unused bandwidth in standard electrical wiring. Since its inception, the product has achieved immediate market success and has won every competitive review it has appeared in against vendors including Asoka, GigaFast, Linksys and NetGear.

"As the market for powerline home networks emerges, we are proud to offer consumers the first truly plug-and-play alternative," said John Knab, president and CEO of Phonex. "With 12 years experience in powerline technology, we are pleased to lead the market in the development of the first home network alternative that is fast, offers touch-of-a-button security, and provides a software-free installation. The NeverWire is also the first product to achieve certification and availability in the European market."

"Thanks to new manufacturing efficiencies, we are now pleased to lead the market in providing these features at a price point that will help this technology to expand as quickly as possible," Knab continued.

With the NeverWire 14, business or home users with multiple computers can use their existing power lines to create an instant 14MB Ethernet network that allows them to share high-speed internet access, share peripheral devices such as printers, and play interactive network and Internet games.

With the NeverWire 14, business or home users with multiple computers can use their existing power lines to create an instant 14MB Ethernet network that allows them to share high-speed internet access, share peripheral devices such as printers, and play interactive network and Internet games.

Key to the NeverWire's success is the product's no-software installation. Consumers can set up their own home networks by simply plugging the products RJ-45 jack into their computer or hub and then plugging the NeverWire into the wall. Likewise, a press of a button automatically configures the NeverWire for 56 des security encryption, and a second LED button on the devices performs an instant network self-test.

One of the most popular uses of the NeverWire 14 device is the ability to connect a computer to a cable or DSL modem in another location of the house. The resulting network will support both Macintosh and Windows PCs. The NeverWire 14 is also able to support laptop computers through the laptop's Ethernet network interface card.

Consumers can use as many as 16 NeverWire units per powerline network. Each NeverWire 14 unit is capable of handling an unlimited number of computers and other devices such as computers, modems and printers.

As of today's announcement, the new pricing for the NeverWire 14 is US$99 per node or US$189 per two-node set. The product is available from Phonex and from selected retail dealers in the U.S. and worldwide. For ordering information or for a list of local retail sources, customers can contact the company at 801-566-0100, or visit the company's web site at www.phonex.com.

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Founded in 1988, Phonex Corporation, based in Midvale, Utah , is a privately held company recognized as the world's largest supplier of powerline-based voice and data products. Phonex Corporation's proprietary technology enables telephone and data devices to communicate reliably using standard electrical wiring. The technology is protected by multiple patents. Phonex has sold more than 9 million powerline products worldwide and was the first company to market a broadband networking device that turns any electrical outlet into a 10BaseT Ethernet port.

Phonex Corporation and NeverWire 14 are trademarks of Phonex Corporation.

All other company names and trademarks are the property of their respective companies.

PR Contacts:

Cheryl Snapp or Brian Anderson
Meservy Wing Snapp
801 434-4440
801 434-4441 fax
csnapp@mwsagency.com or banderson@mwsagency.com

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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