Data Connection and MetaSwitch Announce Record Financial Results

Twentieth Straight Year of Increased Revenues and Profits Secures Long-Term Funding for MetaSwitch Division

ALAMEDA, Calif.--(BUSINESS WIRE)--Oct. 5, 2001--Data Connection, the leading supplier of converged communications technology to major service providers and OEMs, today announced combined annual results for its operating divisions including MetaSwitch, vendor of the VP3000 next-generation Class 5 Broadband Voice Platform.

 The company's revenue for the fiscal year ended August 31, 2001 was $35.5M, with earnings at $12.0M, an increase of 17% on the previous year. Increased revenues were achieved, and new customers gained, in all business areas, including internet applications (unified messaging and conferencing), networking protocols (MPLS, IP Routing, SIP, MGCP, Megaco/H.248, LDAP, ...) and MetaSwitch (VP3000 Broadband Voice Platform).

 "In the current economic environment, these results are remarkable," said Ian Ferguson, Chairman of Data Connection and its MetaSwitch division. "While many in the industry are suffering severe difficulties, we are experiencing ongoing financial success thanks to continuing R&D investment across all our business units, our engineering expertise, our strategic customer relationships based on our dedication to customer support, and the strength of our management team."

 The commercial strength of the company's MetaSwitch division contrasts with that of other vendors who have disappeared or withdrawn their product lines. "Thanks to these results, all our planned investments in the MetaSwitch VP3000 are fully funded beyond the end of next year," confirmed Ferguson. "Our customers can depend on our ability and commitment to enhance and support the product, making the VP3000 the sensible choice for both immediate broadband voice deployments and a long-term VoIP and next-generation strategy. MetaSwitch is now positioned to emerge as one of a handful of major players in the next-generation voice switching market."

 Data Connection is privately-held with an organizational structure that fosters long-term investment in both products and employees. The result is a strong and developing product portfolio of best-in-breed technology and relentless commercial success, with revenue and profits increasing every year since the company was founded in 1981. Data Connection's strong focus on recognizing and rewarding the contribution of all employees has led to exceptionally high employee retention which is at the heart of its success.

 For further information about Data Connection, visit http://www.dataconnection.com. For further information about Data Connection's MetaSwitch division, visit http://www.\b metaswitch\b0 .com.

 About Data Connection

 Data Connection Limited (DCL) is the leading independent developer and supplier of MPLS, LMP, SIP, MGCP/Megaco, SCTP, ATM, Conferencing, Unified Messaging, Directory and SNA portable products. Customers include Calient, CIENA, Cisco, COLT Telecom, Fujitsu, Hewlett-Packard, Hitachi, IBM Corp., Lucent, Microsoft, Nortel Networks, Santera, Sonus, Sycamore, SBC, SGI, Sun, and Verizon. It was founded in 1981 and is privately held. During each of the past 20 years its profits have exceeded 20 percent of revenue.

 About MetaSwitch

 The MetaSwitch VP3000 Broadband Voice Platform combines broadband voice gateway and Class 5 switching functions in a high density, carrier class system. The result is an extremely cost-effective Voice-over-Broadband solution which does away with the requirement for an expensive and rigid legacy Class 5 switch. Support for industry standards ensures interoperability with access and CPE devices from a wide range of vendors. In addition, the VP3000's future-proof Softswitch architecture offers a clear upgrade path to VoIP and next-generation networks. The MetaSwitch support and customer management infrastructure builds on the vast experience Data Connection has developed by helping its strategic customers deliver successful products and services.

 Data Connection and MetaSwitch are headquartered in London UK, with US offices in Alameda, CA and Reston, VA.

 Data Connection and MetaSwitch are trademarks of Data Connection Limited and Data Connection Corporation. Brands and products referenced herein are the trademarks or registered trademarks of their respective holders.