May, 7, 2003 - Salt Lake City,UT - Phonex Corporation ^TM Corporation (www.phonex.com), a world leader in Power Line Carrier (PLC) voice and data communication devices, today announced the revolutionary TimeSlot ^TM Quality of Service (QoS) feature for the ReadyWire Powerline Home Communications Chip. TimeSlot QoS divides the ReadyWire bandwidth into 15 independent time slots designed to ensure connection quality with a new level of control and prioritization.

"TimeSlot QoS is one of the defining features of the ReadyWire Chip," said John Knab, CEO of Phonex. "It allows several audio, voice, video and data applications to use the same bandwidth at once with virtually no loss of quality. The ability to control up to 15 applications with independent prioritization and control is a major step forward for multimedia applications in the home. Perhaps the greatest benefit from using TimeSlot QoS is its effect on synchronization. Music delivered via TimeSlot QoS is synchronized at every destination; surround sound stereo without wires is now a simple reality."

The ReadyWire TimeSlot QoS ensures performance for up to 15 applications by giving each its own defined time slot on the bandwidth. In contrast, Ethernet, Internet, 802.11b (WiFi) and many other technologies are best-effort packet switching protocols without the precise timing of data delivery.

Each TimeSlot can be used individually or aggregated to form communication channels. Each channel can be individually controlled, prioritized, or encrypted. An application using one channel will not have collisions, interruptions, or share bandwidth with applications on a different channel. In addition, each channel can also be configured for standard packet data or streaming audio. TimeSlot QoS technology is compatible with most any kind of consumer electronic or multimedia data stream including Internet, Ethernet, WiFi, MP3, and video.

The ReadyWire Powerline Home Communications Chip will provide developers with vastly improved methods for connecting every type of device in the home with streaming audio, Internet video and home automation control. In addition, this new chip uses an ARM 946 processor core with up to 100 MIPS of reserve power. Developers will be able to access this processor to operate other device functions such as device control, modems and MP3 decoders and realize a significant savings in design costs. The patented ReadyWire design is completely co-existent with current communication technologies and offers a broad range of development interfaces. With its available processor power and multi-media connectivity, the ReadyWire ASIC chip will enable a new market of inexpensive, connected devices for the home. Phonex development of the ASIC is complete and engineering samples will be available by September. Development kits will be available in December, 2003.

The ReadyWire Home Communications Chip enables the following applications:

• MP3 streaming audio to powerline speakers throughout the home
• A web camera connection at any power outlet
• High-quality, multi-line phone systems over powerline
• Intercom connections using the electrical wiring
• Embedded powerline phone connections for any device
• V.92 MODEM base available to every device in the home
• 599 kbps speed for home networking (DSL like speed)
• Encrypted home automation and control of 3,750 devices

The ReadyWire Home Communications Chip offers the following features:

• Open development platform with full featured development kits
• Broadcast near CD quality audio signal to 250 Devices (599 kbps)
• TimeSlot QoS to ensure excellent link quality under network load
• Up to 15 separate simultaneous near CD quality audio channels
• Up to 7 separate simultaneous high-quality, full-duplex voice lines
• Automation control of 250 devices on each of 15 domains
• Triple DES encryption
• Inexpensive, highly integrated chip solution
• Includes ODM Accessible ARM 946 Processor Core - a significant design savings
• Co-existent with all Powerline Standards
• Unmatched connection reliability with no hardware required for phase jumping

For more information about ReadyWire or about its availability, readers can contact Phonex 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 is a member of CEA, the Consumer Electronics Association, and the HomePlug Powerline Alliance.

Phonex Corporation, ReadyWire, and TimeSlot QoS are trademarks of Phonex Corporation.

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

PR Contacts:

Cheryl Snapp or Tim Rush
Snapp Norris Group (SNG)
1.801.226.3223
1.801.226.3883 fax
cheryl.snapp@sng.com or tim.rush@sng.com

Company Contact:

Brad Warnock, Director of Marketing
Phonex Corporation
1.801.984.5107
1.801.984.5007 fax