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Terabeam Adds Millimeter Wave Radio To Its 
Broadband Wireless Stable With Harmonix Acquisition

    KIRKLAND, Wash., JULY 15, 2002 - Terabeam Corp., a pioneering developer of broadband wireless systems, today announced that it is broadening its product portfolio beyond free space optics (FSO) to include millimeter wavelength radio products as well. The acquisition of Harmonix Corp., one of the leading innovators in the design and manufacture of millimeter wavelength wireless communications systems and components, instantly expands the scope and variety of Terabeam’s broadband wireless solutions.

    “The world’s leading telecommunications carriers have told us they are looking for reliable and cost-effective means to extend their networks,” said Terabeam Chairman, President and CEO Dan Hesse. “Terabeam free space optics and millimeter wavelength technologies are two ways to accomplish this. Both have their strong points, and with both under the Terabeam banner, we can offer a full range of broadband wireless capabilities to carriers worldwide.”

    In addition to free space optics equipment and services that Terabeam offers with its Magna and Elliptica products, Terabeam has added a 60 gigahertz (GHz) point-to-point wireless system that provides Fast Ethernet, OC-3, OC-12 and soon 1.25Gbps/Gigabit Ethernet full duplex connectivity. Field-proven over the past five years as a private network in Tokyo, these systems utilize proprietary Direct Digital Modulation (DDM) to support both IP and packet-switched protocols.

    Like free space optics, the 60 GHz millimeter frequency region was used by scientists, the military and government agencies for communication between satellites in space or for covert, secure communications links. During those early days of use, equipment operating in that spectrum was very difficult to manufacture and too expensive for general use. No frequency allocation existed for general public use. Technological advances have reduced the cost of millimeter wavelength systems, making them relatively inexpensive compared with fiber optic cabling. With demand for data communications spectrum exploding, the FCC eventually allocated this spectrum for unlicensed operation.

    Terabeam’s new capabilities have some important similarities, but they also have the following important differences, which are synergistic and complementary to Terabeam’s unique free space optics systems: 

  • Terabeam’s 1550 nanometer/193 THz FSO and the 60 GHz true millimeter systems are very high-capacity wireless systems that provide the provisioning flexibility and price performance that terrestrial systems such as fiber cannot.

  • Both Terabeam’s FSO and 60 GHz systems use unlicensed frequency, with the accompanying economic advantages.

  • Terabeam FSO and millimeter wavelength systems operate at similar ranges and data rates.

  • FSO’s freedom and 60GHz’s near-freedom from interference (a property unique to this section of the RF band) allow for great system capacity and scalability. This freedom from interference, combined with highly focused “beams,” make both kinds of systems, and Terabeam FSO in particular, secure communications media.

    The two technologies are also complementary:

  • Terabeam FSO systems are less susceptible to rain than are 60 GHz systems, while 60 GHz systems operate better in fog than FSO systems.

  • Both Terabeam FSO and millimeter wavelength systems are rooftop-deployable, but Terabeam’s Elliptica systems, the only CDRH/IEC Class 1 high-capacity system in the world, are totally safe and free of warning labels or restrictions in any indoor installation. They operate reliably through almost any kind of window coating.

  • Perhaps most important of all, while FSO is usually less expensive than fiber, Terabeam’s millimeter wavelength systems will offer unprecedented price performance.

    Terms of the acquisition were not announced. Terabeam’s millimeter wavelength division is based in North Andover, Mass.

    Hesse added, “We have taken proactive steps at Terabeam to ensure we’re in top condition to run a marathon. After this acquisition, even if one takes a worst-case view and assumes telecommunications business conditions will not improve, we have no debt and the cash on hand today to get us to 2006 at a minimum.”

    About Terabeam
    Terabeam provides telecommunications carriers and enterprise customers with broadband wireless systems and professional services to extend their existing networks. Terabeam delivers the speed, capacity and connectivity of fiber optics and the delivery times of a wireless technology by utilizing free space optics (sending invisible light primarily through office windows) and millimeter wavelength radio technologies. It’s fiber optics without the fiber. Terabeam is ISO 9001 registered and certified. For more information, visit Terabeam’s Web site at http://www.terabeam.com.

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Contact: 
Jennifer Gehrt
Waggener Edstrom
(425) 638-7101
jgehrt@wagged.com