Interphase to Roll Out Communications Appliances to Telecom OEMs

7/17/2003 - Interphase Corporation (NASDAQ: INPH), an international supplier of next-generation networking technologies, announced details of an initiative to supply telecom Original Equipment Manufacturers (OEMs) with communications appliances for deployment in carrier access environments. This program has been in progress for several months and is presently in the customer testing phase. The initial appliance products will be ready for global introduction this quarter.

This appliance initiative expands the scope of the existing Interphase iNAVTM line of carrier boards and intelligent blades into specialized standalone subsystems. Housed in efficient, space-saving 1U enclosures, the new communications appliances leverage Interphase expertise in intelligent board-level communications technologies and complementary software and services. The main function of the iNAV appliance series is to perform enhanced communications protocol processing and multi-protocol interworking capabilities in particular, all in a compact, deployment-ready format.

The need for multi-protocol interworking equipment is driven by the convergence of multiple communications networks resulting from the demands placed on service providers to deliver enhanced consumer services. These services generally involve communication across dissimilar networks, requiring an interworking gateway to bridge multiple technologies. Enhanced services such as Internet surfing on a mobile phone require the bridging of wireless networks and the Internet with a wireless gateway. The iNAV appliances perform this gateway function for protocol conversions between dissimilar networks, thus enabling inter-network communications at a significant cost savings to the carriers. Traditional technology solutions that perform this protocol interworking function in the market today are costly, multi-function platforms that consume a large physical footprint. By contrast, the iNAV appliances supply OEM customers with a specialized gateway featuring substantially improved performance, while significantly reducing the cost of ownership as well as the physical real estate required. Internal analysis shows that the new the iNAV appliance series features up to a five times improvement in the price/performance ratio of alternative solutions on the market today.

Telecom equipment OEM customers will recognize significant savings in their integration and development cycles by using the application-ready iNAV gateway appliances, while offering their customers, the end-user service providers, a dramatically reduced cost and equipment footprint for bridging dissimilar network technologies. Products planned for the iNAV appliance series will perform this multi-protocol inter-working function in addition to other functions such as consolidating backhaul lines to reduce carriers’ leased line operating expenses.

With the announcement of this product set, Interphase extends and delivers upon its “Designed to Perform, Designed to LastTM” approach by providing board-level solutions that function both as standalone solutions in 1U enclosures and as a subsystem of a larger application function in traditional systems or PICMG® 2.16 CompactPCI Packet Switching Backplane (CPSB) compliant platforms. OEMs will also reap the added benefit of the common software interface offered for the both the Interphase standalone appliances and the Interphase board-level blades incorporated in their larger platforms. This will afford significant flexibility to the OEMs by enabling them to leverage development efforts across multiple design projects with little or no application software impact. This is in keeping with the Interphase goal to deliver OEMs with significant cost reductions at the same time as decreasing project manpower and development cycles.

“Our communications appliance program is a significant part of our technology vision and company growth plan,” said Greg Kalush, President and CEO of Interphase Corporation. “The iNAV appliances will provide our customers with a quantum improvement in the performance and cost of gateway equipment and will provide Interphase with a head start in this high-potential market. Since these products will be application-ready, we will also significantly reduce the development time typically required for our OEM customers to go to market, which will shorten typical Interphase sales cycles as well. Initial feedback from various customers regarding these products has been very positive and we look forward to addressing many new opportunities with these appliances.”

The first product in the iNAV appliance series will be announced in the near future.

About Interphase Corporation
Interphase enables rapid platform design and integration for the global voice and data communications markets through custom and off-the-shelf communications equipment, embedded software development suites, and systems integration and consulting services for telecom and enterprise networks. The company's products connect computer and telecommunication servers to Wide Area Networks (WANs), Local Area Networks (LANs) and Storage Area Networks (SANs) using Asynchronous Transfer Mode (ATM), Ethernet, Signaling System 7 (SS7), IP, Fibre Channel, HDLC, Frame Relay and Integrated Services Digital Network (ISDN) technologies. Headquartered in Plano, Texas with offices across the United States, Paris, Munich, Helsinki, Beijing, and Bangkok, Interphase 2002 revenues were $25.1 million. Clients include Lucent Technologies, Nortel Networks, Ericsson, Hewlett-Packard, Alcatel, IBM, Motorola, Fujitsu, Lockheed Martin and Raytheon. Additional information about Interphase and its products is available through the company’s web site at

The Interphase logo is a registered trademark of Interphase Corporation.

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