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Jim Bishop

10/10/01 8:52 AM

#1069 RE: SSP #1067

PNDS is it, check news under that symbol.

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Jim Bishop

10/10/01 9:13 AM

#1072 RE: SSP #1067

VNCI VNCI Video Technology Enables US Naval Air Systems Command ATM
Communications 'Network of the Future'

PORTSMOUTH, N.H., Oct 10, 2001 /PRNewswire via COMTEX/ -- (Nasdaq: VNCI, VNCIW)
Video Network Communications, Inc., a leader in enterprise video networking,
today announced completion of phase two implementation of VNCI Video Systems by
the US Naval Air (NAVAIR) Systems Command, the branch responsible for research,
development, testing and evaluation (RDT&E) of sea-based air defense weapons
systems, including F-14 fighters, F/A-18 fighter/bombers, P3 submarine hunters,
and E2C command and control aircraft. Phase two provides the fully integrated
video network required for the launch of this landmark communications project,
dubbed the Network Centric Warfare RDT&E Network of the Future. Approximately
$1.4 million of VNCI equipment has been installed to date. These revenues were
recognized in the latter half of 2000.

For the first time in NAVAIR history, nine strategic labs and sites located at
China Lake and Point Magu, California, and Paxtuxent River, Maryland are able to
access and share MPEG-2 video, voice, and encrypted data and telemetry over the
Navy's secure, native ATM network. For example, during a test or training event,
video content and data can be fed, fully encrypted, directly into the NCW
Network, and then accessed at any or all endpoints with just a click of the
mouse. The ability of VNCI's patented technology to run over existing telephone
wires inside the labs allows NAVAIR personnel to simultaneously dial into any
camera feed, collaborate in a secure multipoint videoconference, and run
powerful simulation and design applications -- without leaving their
workstations and without disrupting the LAN. This configuration is one of the
first real-world demonstrations of Network Centric Warfare (NCW), the Navy's
guiding principle for 21st century warfighting.

Mark Kolstoe, NCW Network and Security Team Leader and IBAR (Integrated
Battlespace Arena) System Administrator, explained: "Our mission is to ensure
that the principle of Network Centric Warfare works in real battlespace. To do
that, we need to get the right information into the right hands instantaneously,
or close to it. Every person and every piece of equipment has to be plugged into
a virtual "matrix" of data and high-quality visual communications and content.
With nine sites and over a hundred individuals linked by VNCI's Visual Network,
we are now able to access information and work together as one unit - without
leaving our workstations. That means everyone makes better decisions faster, and
that saves lives."

Based at China Lake, Mark Kolstoe is chief architect and project leader of the
lab network project. China Lake is a major R&D lab and testing and evaluation
range for the Navy, Air Force, Army, and Joint Service weapons systems, and
headquarters for the Naval Air Warfare Center Weapons Division. Mark also
participates in the Navy's Business Process Re-Engineering project, tasked with
recommending process improvements to work "smarter, better, cheaper." As network
architect, Mark's challenge was to create an information backbone that
integrated 21st century video networking technology with the Navy's existing,
secure ATM network, while conforming to strict budgetary and resource
guidelines. The ultimate goal: information superiority.

Stephen LaMarche, Vice President of Sales and Marketing at VNCI, added: "VNCI is
extremely proud to be able to contribute to the development and launch of the
NCW Network of the Future. This pioneering project has set the groundwork for
hundreds of secure labs and sites around the country to review and share not
only video content and data, but also the knowledge and expertise critical to
the success of their collective mission. The successful launch of this Network
represents yet another milestone in our penetration of the government and DoD
markets."

About Video Network Communications, Inc.

Video Network Communications designs, develops, and markets video distribution
systems that provide full-motion, high-resolution video networking, enabling
video broadcast distribution, retrieval of stored video- on-demand and
interpersonal video communications. The patented technology allows the VNCI
system to use the same wiring as the telephone to bring TV- quality video
anywhere there is a phone line. The Company's ISDN/IP and Universal (ATM)
Gateway solutions extend the system's reach from enterprise desktops out to the
wide-area-networks (WANs). The Company's common stock, units and warrants are
listed on The Nasdaq SmallCap Market under the symbols "VNCI" and "VNCIW"
respectively. Additional information is available at www.vnci.net.

Except for the historical information herein, the matters discussed in this news
release include forward-looking statements that may involve a number of risks
and uncertainties. Actual results and future events may vary significantly based
on a number of factors, including, but not limited to, risks in product and
technology development, market acceptance of new products and continuing product
demand, the impact of competitive products and pricing, changing economic
conditions and other risk factors detailed in the Company's most recent filings
with the Securities and Exchange Commission.


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SOURCE Video Network Communications, Inc.


CONTACT: Billie Jo Weiss of Collaborative Communications, +1-617-520-
9138, bjweiss@collaborative.com; or Kerri Connelly of Video N
twork
Communications, Inc., +1-603-334-2232, kerri_connelly@vnci.ne
; or William A.
Walkowiak, CFA of Lippert/Heilshorn & Associates, Inc., +1-21
-838-3777,
william@lhai.com

URL: http://www.vnci.net
http://www.prnewswire.com

Copyright (C) 2001 PR Newswire. All rights reserved.

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KEYWORD: New Hampshire
INDUSTRY KEYWORD: CPR
SUBJECT CODE: OTC

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