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Vyyo Reaches Long-Term Agreement With Arcadian Networks to Deploy Advanced Wireless Solutions to Companies With Dispersed Assets

Posted on: Friday, 7 April 2006, 09:00 CDT

ATLANTA and NEW YORK, April 7 /PRNewswire-FirstCall/ -- Vyyo Inc. , a global supplier of broadband access equipment for cable and private wireless broadband network solutions, and Arcadian Networks, Inc., a telecommunications carrier, today announced a long-term agreement that makes Vyyo a supplier of broadband wireless products for deployment by Arcadian Networks to its customers.

Under the agreement, Vyyo has received an initial purchase order from Arcadian Networks for $10 million of products for deployment in Minnesota and parts of Wisconsin. In addition, Vyyo has received the first of two $4 million payments which give Arcadian Networks exclusive rights to certain Vyyo products in specified markets. Arcadian Networks has concurrently announced an agreement for deployment of its network with Great River Energy (GRE), Minnesota's fourth-largest U.S. wholesale power cooperative.

"We are thrilled to enter into this long-term relationship with Arcadian Networks to meet the needs of utilities and other companies with dispersed assets," said Davidi Gilo, CEO of Vyyo. "Using Vyyo products, Arcadian Networks is building a ground-breaking digital data network for enabling companies across multiple industries to maximize the efficiency of their remote operations. We anticipate that teaming Vyyo's wireless base stations and unique 700 MHz wireless customer premises equipment with Arcadian's spectrum and services will accelerate the deployment of Vyyo's products nationwide."

Mr. Gilo added, "Our agreement with Arcadian Networks represents a significant milestone for our company as it provides a sizeable immediate and, potentially, long-term revenue stream."

Gil Perez, CEO of Arcadian Networks, Inc. said, "Our customers face the substantial challenges of serving large geographic areas with widely-dispersed assets, often in harsh weather conditions. Vyyo's unique, long-range technology enables Arcadian Networks to provide a real-time asset management solution, which will help our customers ensure the flow of mission-critical data and improve overall operations."

Vyyo products provide the foundation of Arcadian Networks solution which is designed to enable its customers to improve efficiency, reliability and security. Arcadian Networks' solution will be primarily used for ongoing Supervisory Control and Data Acquisition (SCADA), security surveillance, Voice over Internet Protocol (VOIP), control area operations, automatic meter reading (AMR) and workforce management. Companies with dispersed assets can maintain their existing communication infrastructure while upgrading to an IP-based communications network. Arcadian Networks is the first carrier to provide a secure two-way private licensed broadband radio spectrum to substations, feeders and meter sites, allowing utilities and other dispersed assets industries to monitor mission-critical assets in real-time, detect problems proactively and respond to the growing security requirements of their facilities and assets.

About Arcadian Networks, Inc.

Arcadian Networks is a telecommunications carrier providing the first private, secure wireless data communication network for utilities and other "dispersed-asset" industries in a wide portion of the rural United States. Through its unique 700 MHz-based network, the company offers utilities such as electric, oil and gas and water with a turnkey flexible high-speed broadband network allowing real-time monitoring and control of operations and management applications. Arcadian Networks provides the foundation for reliable, secure and efficient network focused on operational, mission critical assets and infrastructure. Based in New York City, Arcadian Networks is funded by Goldman, Sachs and Co. and Gilo Ventures. For more information, please visit http://www.arcadiannetworks.com/.

About Great River Energy

Headquartered in Elk River, Minn., Great River Energy is a not-for-profit generation and transmission electric cooperative providing wholesale electric energy and related services to 28 distribution cooperatives in Minnesota and Wisconsin serving 1.5 million people. Great River Energy is the second largest power supplier in Minnesota, in terms of generating capacity, and the fourth largest utility of its type in the United States.

About Vyyo Inc.

Vyyo provides cable and wireless broadband access solutions. Our products are designed for use by cable television and telecommunication operators, wireless internet service providers (ISPs), utilities and enterprise. Our cable solutions include cable system spectrum overlay solutions designed to expand cable operators' typical HFC (hybrid-fiber coax) network capacity in the "last mile" by up to 2x in the downstream and up to 10x in the upstream, addressing bandwidth demand for T1 and other advanced services. Our wireless broadband solutions enable utilities and other customers to operate private wireless networks for communications to their remote assets and customers. Typical applications include high-speed internet services, SCADA (Supervisory Control And Data Acquisition), voice over internet protocol (VoIP) and telephony (T1/E1), all based on modified Data Over Cable System Interface Specification (DOCSIS(R)) technology. For more information, please visit http://www.vyyo.com/.

Safe Harbor Statement

Statements made in this press release relating to the future, including those related to the anticipated acceleration of our products nationwide and revenue stream resulting from our agreement with Arcadian Networks, opportunities created for our customers given our ability to provide spectrum overlay and wired and wireless T1 solutions and our ability to dramatically increase upstream and downstream bandwidth, are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties, as well as assumptions that, if they do not fully materialize or prove incorrect, could cause our business and results of operations to differ materially from those expressed or implied by such forward-looking statements. Risks that may cause these forward-looking statements to be inaccurate include among others: whether we will be able to move from development stage to deployment and establish commercial relationships with cable system operators; whether we will be able to successfully produce our wireless systems and whether such systems will be adopted and deployed by utilities and other customers; the current limited visibility available in the telecommunications and broadband access equipment markets; the willingness and ability of operators to adopt our new technology and apply it in a manner that meets customer demands; our ability to produce and distribute our broadband wireless and spectrum overlay solutions in the quantities, and with the quality control, desired by the market; and other risks set forth in our annual report on Form 10-K for the year ended December 31, 2005, our quarterly reports on Form 10-Q and other reports filed by us with the Securities and Exchange Commission from time to time. We assume no duty to update these statements.

NOTE: All trademarks mentioned herein are the property of their respective owners.

DOCSIS is a trademark of Cable Television Laboratories, Inc.

Vyyo Inc.

CONTACT: media, Robb Malin, ram@abmac.com, or Lex Suvanto,lex@abmac.com, both of The Abernathy MacGregor Group, +1-212-371-5999, forVyyo Inc.; Paul Schneider of Paul Schneider Public Relations, Inc.,+1-215-702-9784, or pspr@att.net, for Vyyo Inc.; or investors, Walt Ungerer,VP, Corporate Communications of Vyyo Inc., +1-678-488-0468, or ir@vyyo.com

Web site: http://www.arcadiannetworks.com/http://www.vyyo.com/

Source: PRNewswire-FirstCall

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