SUNNYVALE, Calif. -- Juniper Networks, Inc. (Nasdaq:JNPR - News) today announced it is collaborating with leading cable solution provider, ARRIS (Nasdaq:ARRS - News), in a strategic move to enhance the choice and flexibility available to Multi-Service Operators (MSOs) looking to differentiate their offerings through the delivery of IP-based services. Through this co-marketing initiative, Juniper Networks and ARRIS will deliver industry-leading CMTS (Cable Modem Termination System) and IP solutions to help transform the MSOs' business. In support of this partnering strategy, Juniper Networks also announced its intention to voluntarily discontinue the G-series product line.

"Juniper Networks is focused on delivering industry leading solutions to help our customers transform their businesses. Our strategy to expand our presence within the cable operators by collaborating with the industry's leading CMTS vendors, including ARRIS, represents a win-win for Juniper, our customers, and our partners -- to the ultimate benefit of the cable industry as a whole," commented Jim Dolce, executive vice president, Worldwide Field Operations, Juniper Networks.

"We're very excited to be partnering with Juniper Networks in a move that will enhance the solutions we can offer to our MSO customers," commented Jim Lakin, president, ARRIS Broadband. "Through this agreement, we will be combining high performance IP networking platforms with our current ARRIS Cadant® and Cornerstone® CMTS product line."

In support of this partnering strategy, Juniper Networks has discontinued development on the G-series CMTS products, effective immediately, and will work with CMTS vendor ARRIS to co-market the Juniper Networks IP solutions alongside the ARRIS CMTS solutions. Juniper Networks will continue to provide support for the G-Series product pursuant to its standard end-of-life policies and contractual commitments. This support includes software support and repair or replacement of faulty hardware.

Consequently, there will be a one-time charge of approximately $10-15 million to Juniper Networks comprised primarily of costs associated with workforce reduction, vacating facilities, contract termination, non-inventory asset impairment charges and other related costs. There is no change from the non-GAAP flat revenue and flat EPS guidance given on July 10th, 2003.

Juniper Networks Inc.

Arris Group Inc.