Arris Buys Com21 Assets, Gets Docsis 1.1

DULUTH, Ga. -- ARRIS (NASDAQ:ARRS), a global telecommunications technology leader, today announced that it had entered into a definitive agreement for the acquisition of certain cable modem termination systems (CMTS) related assets of COM 21, including the stock of its Irish subsidiary, for a purchase price of approximately $2,800,000, subject to the approval of the US Bankruptcy courts and certain other closing conditions. The transaction will transfer ownership of a DOCSIS® 2.0 based Layer 3 capable CMTS specifically suited for smaller markets to the ARRIS portfolio of next generation high speed data products. The new C3 product along with ARRIS’s market leading Cadant® C4™ CMTS provides ARRIS customers with complete market coverage from very large concentrated urban markets to small and mediums size markets.

“This is the culmination of our previously announced OEM agreement with COM 21,” said Bob Stanzione, ARRIS Chairman, President & CEO. “The transaction enables us to own and integrate the intellectual property and talent behind our new C3 CMTS. The C3 is a feature rich rack mounted CMTS which will allow us to reach smaller scale systems domestically and internationally. We expect the transaction to be slightly dilutive to earnings per share in the second half of this year and accretive in 2004. The transaction is an exciting one for us and we are pleased to welcome approximately 45 new employees to the ARRIS family. I am confident they will help keep us on the leading edge of internet protocol technology,” concluded Stanzione.

ARRIS provides broadband local access networks with innovative next generation high-speed data and telephony systems for the delivery of voice, video and data to the home and business. ARRIS complete solutions enhance the reliability and value of converged services from the network to the subscriber. Headquartered in Duluth, Georgia, USA, ARRIS has design, engineering, distribution, service and sales office locations throughout the world. Information about ARRIS’ products and services is found at www.arrisi.com.

In a separate release:

ARRIS (Nasdaq ARRS) today announced that its Cadant® C3 CMTS has received DOCSIS® 1.1 qualification from CableLabsâ in its Cable Wave 26 testing.

The Cadant C3 CMTS is a flexible, powerful CMTS designed to provide mid-sized cable operators with a scalable and easy-to-use, cable-specific solution for the delivery of tiered services and media-rich broadband content. DOCSIS 1.1-qualified and DOCSIS 2.0-based, it complements the carrier-grade ARRIS Cadant C4 CMTS, designed for large cable systems, and the Cornerstone 1500 CMTS, designed for small cable systems.

“The Cadant C3 is a part of our growing family of CMTS products and we are extremely pleased that CableLabs has qualified this excellent product,” said Jim Lakin, President, ARRIS Broadband. “Our success in CableLabs’ Wave 26 will further enable ARRIS to bring world-class data and voice solutions to every level of the broadband market.”

Arris Group Inc.

Com21 Inc.