ACTIONTEC ANNOUNCES THE FIRST WIRELESS-READY ROUTER
ABLE TO UPGRADE USB MODEMS FOR HOME NETWORKING

Features Actiontec’s Easy-Install System; Also Works with Any Ethernet Cable or DSL Modem

SUNNYVALE, CA (July 2, 2002) --Actiontec Electronics today announced the Actiontec Dual Mode Wireless-Ready Cable/DSL Router, the first networking solution for a home or small office that permits users to share Internet access through a USB modem. The product works with the Actiontec USB Home DSL Modem which holds a 20% market share in the U.S. as well as with Ethernet Cable and DSL modems from any manufacturer (the “Dual Mode” of the name).

The new router can be used to network two desktop or laptop computers over a wired connection and a third through the unit’s USB LAN port. Up to 32 additional computers can be networked wirelessly with the addition of an 802.11b-compliant PC Card. Networked computers can share files, printers and other peripherals, and multiplayer games as well as a single Internet connection, with wired surfing speeds of up to 100 Mbps and wireless access of up to 11 Mbps.

The router’s ability to upgrade a USB modem for networking is an industry first, achieved by special engineering that has conquered technical problems such as loading drivers on a USB device. Previously, networking with a USB modem was not possible, forcing users to purchase a non-USB device if they wished to connect computers for shared Internet access.

Also new with this router is a first-of-its-kind installation system that dramatically simplifies the networking process. Actiontec’s breakthrough installation system includes an automated setup wizard, color-coded ports and cables, and on-screen pictorial guides that offer a goof-proof means of establishing shared DSL or Cable Internet access even for the least technical user.

The networking wizard, called Connection 1-2-3™, adds new computers to the network with virtually no user intervention, automatically verifying the network settings and TCP/IP readiness of each new computer and correcting problems if necessary. Other features of the Actiontec Dual Mode Wireless-Ready Cable/DSL Router include:

· Two WAN ports to permit Internet connection sharing a USB WAN port for use with the Actiontec USB Home DSL Modem, and an Ethernet WAN port for use with an Ethernet Cable or DSL modem from any vendor.

· Three LAN ports: a USB LAN port, an Ethernet LAN port, and wireless.

· Actiontec’s exclusive dual PC Card slot configuration, with one “wireless-ready” slot for an 802.11b-compliant card to activate wireless networking and a second slot for future cards permitting applications such as wireless printer sharing and Internet-based voice phone calls via VoIP.

· A built-in firewall for network security.

· Advanced 64- and 128-bit wireless security encryption.

· Advanced Web site and Web service blocking to prevent access to undesirable content, plus power filters that can audit and report detailed log files of Web browsing activities.

The Actiontec Dual Mode Wireless-Ready Cable/DSL Router carries an MSRP of $99.99 and will be available in July from mass market retailers and from the Actiontec online store at http://www.actiontec.com. Each package will include a router, an AC power adapter, an Ethernet cable, a USB cable, Quick Start Guides and the Actiontec Installation Buddy™, and Connection 1-2-3™. The product is compatible with Windows 98 or higher for a PC and System 7.1 or higher for a Macintosh.

FOR IMMEDIATE RELEASE

EASIEST HOME NETWORKING KITS ON THE MARKET: NEW FROM ACTIONTEC Breakthrough Automated Setup Wizards, Color-Coded Ports/Cables, and Picture Guides

SUNNYVALE, CA (July 2, 2002) -- If technical terms like PPPoE and DHCP stop you in your tracks and you get hives if you’re asked for a Windows CD or Ethernet adapter driver disk, Actiontec Electronics has a better way for you to set up a wired or wireless network in your home or small office. Actiontec is preparing to ship four different home networking kits with a new installation system that automates virtually all processes, and even offers on-screen pictures and color-coded ports and cables for easy setup of shared high-speed DSL or Cable Internet access.

Result: home networking that’s easy enough for even the most die-hard technophobe. In just a few minutes, family members and colleagues can start accessing the Internet simultaneously from anywhere in the house or yard without having to call the local computer geek or Technical Support for help. No other system is as simple to use.

“I bought a competitive product that was so difficult to install that the salesman warned me that most customers returned it, and I wound up spending two hours trying to set it up with no success even though I have some technical background,” said Peggy Hoffman, a California-based IT project manager. “Actiontec’s prompts, color-coding and pictorial guide are so simple that the hardest thing I had to do was to put a CD in the CD-ROM drive. The difference was amazing.”

Actiontec’s new installation system for establishing high-speed Internet sharing includes a series of color-coded ports and cables that eliminates confusion, plus an Actiontec Installation Buddy™ that guides users through the installation process with pictures. This on-screen aid searches the user’s computer to determine whether the network connection should be established via USB or Ethernet port, then sends the user down a color-coded path with photos and instructions customized for that installation. As a result, users will be able to get their first computer connected to the Internet and to the Actiontec Router or Gateway in a matter of minutes.

This new system further simplifies network installation with the Connection 1-2-3™ wizard. Connection 1-2-3™ automates the process of adding new computers to the network, including verifying the network settings and TCP/IP readiness of each new computer and correcting problems if necessary. Users no longer need to navigate through numerous screens to follow an antiquated process of setting up the TCP/IP, for example, because the system handles this and other functions automatically.

“Complicated setup and configuration are by far the biggest barriers to widespread adoption of home networking today, and our new installation system is designed specifically to remove those barriers,” said Chuang Li, vice president of engineering at Actiontec Electronics. “We have automated a very technical

process and reduced it to little more than asking consumers to connect a series of color-coordinated cables. With our system, a home network practically installs itself.”

“This new installation system, designed for our Router and Gateway products, is just one example of Actiontec’s commitment to making Broadband technology easy,” stated Dean Chang, president and CEO of Actiontec Electronics. “We have already developed an easy to use DSL modem and will continue to lead our industry by developing the easiest to use products on the market.”

The new installation system will be available in July on four products:

· Actiontec Wireless Cable/DSL Router (MSRP $199.99), a kit for building wired or wireless home or small office networks that comes with an 802.11b-compliant wireless Access Point for wireless networking.

· Actiontec Wireless-Ready Cable/DSL Router (MSRP $99.99), a networking solution that allows users to connect wired computers and provides an upgrade path for wireless networking with the addition of an 802.11b compliant PC Card.

· Actiontec Dual-Mode Wireless-Ready Cable/DSL Router (MRSP $99.99), a new product that upgrades any Ethernet Cable or DSL Modem, or any Actiontec USB Home DSL Modem, for networking.

· Actiontec Wireless-Ready DSL Gateway, a networking router with a built-in ADSL modem that is sold through Internet Service Providers and phone companies to provide their customers with a simple broadband home network.

All four products permit users to incorporate desktop and mobile computers on one network; access the Internet at speeds of up to 100 Mbps or wirelessly at 11 Mbps; and connect to the home network either wirelessly or through a USB or Ethernet port. All products also include a built-in firewall and an open PC Card slot that will support future cards permitting applications such as wireless printer sharing and Internet-based voice phone calls via VoIP. Integrated antennas provide wireless connectivity up to 300 feet indoors and 1,500 feet outdoors. For more details on these products, visit http://www.actiontec.com.