Tylite, Inc. announces cost-effective Ethernet fiber network product and design

Tylite, Inc., a Pacific Northwest company that aims to be the premier architect of high-speed Ethernet over Fiber networks, today announced they have developed a subscriber demarcation box and fiber optic system design that provide economical delivery of Internet and broadcast video services over an Ethernet fiber network.

FOR IMMEDIATE RELEASE -- AMENDED FROM JULY 1, 2002

CONTACT:
Robin Toth
TekProse
509.994.6602
robinbtoth@aol.com

Tylite, Inc. announces cost-effective Ethernet fiber network product and design

Demonstrates proof of concept for fiber networks

Spokane, Washington, July 11, 2002 - Tylite, Inc., a Pacific Northwest company that aims to be the premier architect of high-speed Ethernet over Fiber networks, today announced they have developed a subscriber demarcation box and fiber optic system design that provide economical delivery of Internet and broadcast video services over an Ethernet fiber network.

This product will be used in the deployment of networks by municipalities, Public Utility Districts (PUDs) and residential developers.

In designing this new product, the company assessed the requirements for an economical system build-out, without sacrificing robustness or maintainability, and incorporated a customer base of residential, business, education and governmental users. The product design required support of all current information transfer capabilities, i.e., Internet, multi-channel multi-viewer television, and telephone service, at the same price/performance level of todays copper telephone line service.

In addition, Tylites design allowed for cutting edge and future applications, such as super-high-speed Internet (Gigabit speeds and beyond), High Definition Television (HDTV), video conferencing, video telephony, remote control and security, and a host of applications only dreamed of today. The system also had to be future-proof"; that is, be able to handle the technologies that will be available in the next twenty to thirty years without a network rebuild. Finally, it had to be as cheap or cheaper to build as the current costs of building a cable TV system.

The Future Proof FiberTM (FPFTM) demarcation box is a low-cost device, incorporating a minimal hardware design that is very efficient to install and service, but still meets stringent environmental and accessibility regulations. The economical price tag of this device allows Tylite to design very cost-effective, symmetric Ethernet networks.

(more)

Page Two
July 11, 2002

The FPF demarcation box provides an uplink connection to a fiber network, with a standard TV coax interface and a standard RJ45 data link to the residential, business or governmental user. These end user links provide full-duplex 100 Megabit per second (Mbps) bandwith for voice, data and video functionality. The product is powered via the Ethernet network, and can be combined with an indoor Uninterruptible Power Supply (UPS) for continual operation in a power outage.

The FPF is part of a patent-pending fiber network architecture that provides very cost-effective implementation. The design eliminates the need for an expensive set-top box within the residence since it carries broadcast video directly from the service provider, over the fiber network, to the subscribers television.

Our FPF demarcation box, combined with a proprietary fiber network design, enables Tylite to design, build and operate very cost-effective networks for smaller communities," said Jim Wilson, President and CEO of Tylite. It does not replace a home gateway switch, where switches or some types of Voice over IP are required. A switch will work fine in conjunction with the Tylite FPF box.

Network system cost modeling tools will be available on our Web site at www.tylite.com. Municipalities with populations of 5,000 to 100,000 will find that they can install a future-proof communications infrastructure for about 50% of the cost of other networks."

Interested parties are invited to schedule appointments by contacting Tylite/Ptera Wireless at 509.255.9204, Jim Wilson at 509.294.1174 or via email to jwilson@tylite.com.

True fiber to the home networks are now financially feasible," said Fred Bielen, Tylites Vice President of Network Engineering. Our cost justification models show that revenues solely from Internet services will support this fiber to the home network design. Other fiber to the home designs depend on high take rates and revenues generated by Internet, video and telephony, plus an expensive set-top box will be needed just to watch basic television channels."

Bielen added, We expect to have production models of the FPF demarcation box available in the early fall timeframe."

Tylite is seeking additional investment funds for the production phase of their new product.

(more)

Page Three
July 11, 2002

About Tylite, Inc.

Since early 2000, Tylite has steadily been building a portfolio of client projects in the Western U.S. With expertise in consulting services, network design and buildout, and service operations, Tylite has leveraged state-of-the-art design techniques and superior vendor partnerships to develop application-rich services and future-proof next-generation, multi-functional networks for educational institutions, developers, municipalities and utilities.

Tylites management team has also founded two subsidiary companies; Ptera Wireless, which offers wireless Internet service in parts of Spokane and Kootenai Counties, and Priority Terabit, Inc., a competitive local-exchange carrier (CLEC) which will eventually provide local telephone service over the fiber networks Tylite installs.

Tylite is a privately held corporation based in Liberty Lake, Washington. For more information on Tylite, please visit our Web site at www.tylite.com.

Future Proof Fiber, FPF and the Tylite logo are trademarks of Tylite Incorporated. All other trademarks are the property of their respective owners.