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Tuesday, 03/25/2003 11:24:52 AM

Tuesday, March 25, 2003 11:24:52 AM

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Redline Announces Distribution Agreement For Chinese And South East Asian



TORONTO, ONTARIO, Mar 25, 2003 (CCNMatthews via COMTEX) -- "Master" Distribution And OEM Deal Worth An Expected $33-Million (US)

Redline Communications Inc., an innovative provider of next-generation broadband fixed wireless equipment, today announced it has signed a distribution and OEM deal with China's Shanghai Datang Mobile Communications Equipment (SDTM).

Under terms of the non-exclusive agreement, Datang will become a master distributor of Redline's point-to-point and upcoming point-to-multipoint broadband wireless systems for China and member countries of the Association of South East Asia Nations (ASEAN). Datang will also OEM Redline's award-winning AN-50 product and add it to their Airexpress line of fixed wireless systems.

"We're excited about this partnership, as Datang thoroughly understands the cellular, mobility and ISP markets," said Kevin Suitor, Redline's Vice President of Business Development. "Point-to-point and point-to-multipoint WWAN connections are essential elements in Datang's solution portfolio. Both companies are extremely focused on meeting the needs of service providers and enterprise customers in the fastest-growing broadband market in the world."

According to industry analysts at Strategy Analytics, 8.4 million Chinese households will have broadband services in 2003 and by 2008, the market will grow by more than fourfold to 36.7 million households in China(1).

"The Chinese government is determined to position China as a world leader in broadband adoption," said Nick Griffiths in a Strategy Analytics press release. "While the rural population is unlikely to benefit, there are signs that broadband connections will soon become the norm for the urban community."

The three-year Redline-Datang contract is expected to be worth $33-million (US).

"We chose Redline because their high-bandwidth, non-line-of-sight technology will allow our customers to successfully deploy wireless in suburban markets with multipath," said Qiu Xiang Dong, SDTM's Vice President. "We're very impressed by the product's effective delivery of high-speed data, voice and video for a diverse customer base, including ISPs, enterprises and mobility operators. The reflective and diffractive non-line-of-sight conditions in Beijing and other dense urban environments are easily handled by the AN-50."

He added SDTM will hold AN-50 systems in inventory for value-added reseller and systems integrator channels.

Redline's Access Node 50 (AN-50) is a non-line-of-sight, fixed wireless system utilizing advanced orthogonal frequency division multiplexing (OFDM) technology. Redline's distinctive OFDM approach - along with other advanced wireless features implemented in the system - helps to overcome the many performance limitations plaguing current first-generation equipment as well as second-generation platforms using alternative technologies. The AN-50 functions at up to 72 Mbps over the air and operates in the license-exempt band of 5.8 GHz, supporting ranges beyond 50 miles.

About Shanghai Datang Mobile Communications Equipment

Shanghai Datang Mobile Communications Equipment Co., Ltd. is a subsidiary of Datang Telecom Technology Industry Group, one of the largest telecom equipment providers in China. Located in Shanghai Cao He Jin Hi-tech Park, SDTM is operated on the modern enterprise mechanism basis and has passed authentication of the ISO9001 quality system. Also, SDTM devotes itself to developing TD-SCDMA released by Datang, a 3G standard established by ITU. For more information on SDTM, please visit www.sdtm.com.cn.

About Redline Communications

Redline Communications Inc. is a privately held Canadian company located in the Greater Toronto area, focusing on product innovations in the broadband fixed wireless industry. Redline's products deliver a cost-effective wireless solution for backhaul and infrastructure, used by access providers, enterprises, wireless ISPs and more. For more information about Redline's products, visit our web site at www.redlinecommunications.com or call (905) 479-8344.

In June, Redline won a "SUPERQuest Award" which recognized the AN-50 system as the "most promising network transport technology introduced at SUPERCOMM 2002." Redline also received the inaugural "License Exempt - Wireless Internet Service Providers Manufacturer of the Year Award" at the recent WISPCON II conference.

(1) - Strategy Analytics report "Eyeing Up the Promised Land: China's Emerging Broadband Markets"

Editor note:

- SUPERQuest is a registered trademark of CMP Media LLC
CONTACT: Redline Communications Inc.
Media contact: Robert Hunter
(905) 479-8344 x333
rhunter@redlinecommunications.com
Copyright (C) 2003, CCNMatthews. All rights reserved.
NEWS RELEASE TRANSMITTED BY CCNMatthews
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INDUSTRY KEYWORD: CMT - Communications Technology
SUBJECT CODE: NWS - SPECIAL NEWS EVENT


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