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Scientific-Atlanta Announces Next-Generation Data Strategy: Introduces a Scalable CMTS Solution with Pacific Broadband

Strategic CMTS Technology Will Offer Immediate Capacity-relief for Network Operators

Atlanta, GA and San Jose, CA - September 26, 2001 - For cable operators focused on increasing new services and capacity within their existing networks, Scientific-Atlanta and Pacific Broadband Communications (PBC) announced today the launch of two solutions for getting the most out of existing bandwidth. Based on ultra-dense ASIC and CMTS technology developed by Pacific Broadband Communications, the new Prisma® G10 Cable Modem Termination System (CMTS) and Prisma IP™ CMTS Line Card will form the basis for scalable data deployment that allows a DOCSIS 1.0 cable network to harness bandwidth previously unavailable, while providing an easy migration path to DOCSIS 1.1 and DOCSIS 2.0.

The relationship will combine PBC's high performance CMTS technology with the world-wide service structure and cable industry experience of Scientific-Atlanta. Specifically, the parties have agreed that Scientific-Atlanta has exclusive marketing and distribution rights for North America and non-exclusive world-wide distribution rights for the Prisma G10 CMTS and Pacific Broadband Communications has rights to market, sell and support the CMTS to cable operators outside North America.

Prisma G10 CMTS

Addressing the needs of network operators with an installed base of cable modems where traffic and penetration growth is beginning to exceed CMTS capacity, the stand-alone Prisma G10 CMTS solves the problems of upstream bandwidth and router performance limitations within existing high-speed data networks. By leveraging PBC's carrier class CMTS, Scientific-Atlanta's Prisma G10 provides operators with an ultra-dense solution of 32 downstream channels and 128 upstream channels, enabling cable operators to support more cable modem traffic with less bandwidth.

Prisma IP CMTS Line Card

The Prisma IP CMTS Line Card is based on a co-development effort, announced earlier this year, between the two companies and will be integrated with Scientific-Atlanta's Prisma IP optical transport platform. For network operators establishing converged networks, the new CMTS is a metro optical transport solution that integrates a CMTS line card to eliminate additional routers and optical transport equipment normally required for a DOCSIS 1.1 or 2.0 deployment - effectively increasing subscriber penetration of data services without expensive reconfiguration of hubs and nodes.

These Prisma CMTS solutions leverage PBC's custom-built chips to deliver superior RF performance, allowing existing networks to use 16 QAM transmission within 3.2 MHz segments, effectively doubling or quadrupling the upstream data throughput. This is combined with the ability to allocate multiple channels per port for the industry's highest per port throughput. The increase in throughput supports more cable modems per port, thus significantly lowering the cost of the CMTS on a per cable modem basis.

The Prisma CMTS solutions further employ enhanced packet processing technology to eliminate data routing bottlenecks. While the Prisma G10 CMTS will be available by the end of 2001, the Prisma IP CMTS will be commercially available next year.

"The introduction of these Prisma CMTS products underscores the importance of our data networking strategy: to give customers the ability to extract the most value from their networks at any point along the deployment curve," said Paul Connolly, vice president of marketing and network architectures at Scientific-Atlanta. "Scalability via dynamic channel assignment and better RF performance are unique advantages of our system. This gives our customers an immediate solution to capacity issues."

"By leveraging our advanced CMTS solution with Scientific-Atlanta's existing Prisma platform, world-wide service operations and overall breadth of experience in the cable industry, network operators can have the confidence to continue the deployment of data-over-cable, VoIP, and IP streaming technologies now," said Alok Sharma, CEO and president of Pacific Broadband Communications. "And the uniqueness of our custom ASIC translates easily to cost savings and performance gains unavailable anywhere else. This advanced CMTS solution is just one in a series of innovative PBC products that are being developed for the last mile of HFC networks."

As the creator of much of the cable infrastructure in place today, Scientific-Atlanta has unique insight into the demands that cable modem traffic exerts on cable systems. Cable operators are already choosing the WebSTAR™ cable modem because Scientific-Atlanta understands how to integrate cable modems and interactive services into today's increasingly sophisticated cable networks. The addition of the CMTS products extends the company's expertise far beyond that of other vendors' who can offer just a 'box' with little supporting technical experience. This end-to-end data solution delivers a high-performance, high-value solution for cable operators, and greatly increases cable modem traffic capacity within existing networks while providing the upgrade path to DOCSIS 1.1 and DOCSIS 2.0.

About Pacific Broadband Technologies

Pacific Broadband Communications is a developer of ultra dense, high performance and highly noise immune broadband solutions that enable service providers to deliver standards-based data, telephony, and video over last mile networks. The company's management and engineering teams bring years of experience in networking and telecommunications from companies such as AT&T Labs, Excite@Home, Alcatel, Cisco, ADC and Motorola. Its flagship product is the Kodiak™ G10 CMTS, which is distributed exclusively by Scientific-Atlanta in North America. More information can be found at www.pacificbroadband.com/.

About Scientific-Atlanta

Scientific-Atlanta, Inc. (NYSE: SFA) is a leading supplier of digital content distribution systems, transmission networks for broadband access to the home, digital interactive set-tops and subscriber systems designed for video, high speed Internet and voice over IP (VoIP) networks, and worldwide customer service and support.

"Forward-looking statements," as defined in the Private Securities Litigation Reform Act of 1995, may be included in this news release. A variety of factors could cause Scientific-Atlanta's actual results to differ from the anticipated results expressed in such forward-looking statements. Investors are referred to Scientific-Atlanta's Cautionary Statements (Exhibit 99 to the company's most recent Form 10-K), which statements are incorporated into this news release by reference.

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