SANTA CLARA, Calif. -- Terayon Communication Systems, Inc. (Nasdaq: TERN), a leading provider of broadband solutions, today announced that Liwest, the second largest cable television operator in Austria, is using Terayon's complete Euro-DOCSIS 2.0 (Data Over Cable Service Interface Specification) based cable data system to deliver its "24Speed" broadband service. The Euro-DOCSIS 2.0 cable broadband specification is based on the North American DOCSIS 2.0(R) specification and is optimized for European cable networks.

"Euro-DOCSIS 2.0 is a key component of our business strategy that supports our ongoing efforts to minimize capital and operating expenses while enabling us to enhance our 24Speed service with the cable telephony and other advanced broadband services that we plan to offer," said Nicholas Sridharan, president of Liwest. "Our migration to Euro-DOCSIS 2.0 from the proprietary Terayon solution and Euro-DOCSIS 1.0 was straightforward and allowed us to immediately realize many of the benefits of 2.0 without interim steps. Furthermore, we are prepared to deliver services requiring the Quality of Service (QoS) features of Euro-DOCSIS 1.1 as 2.0 includes all the capabilities of 1.1."

Twenty-six of Terayon's BW 3200 CMTSs (Cable Modem Termination System) have so far been deployed in Liwest's headend facilities in the area around Linz, Austria's second largest city with approximately 100,000 Liwest subscribers. These CMTSs are controlling and interoperating with Terayon's TJ 720x cable modems that are being installed in subscribers' homes. This forms an end-to-end system for the delivery of high-speed Internet access and other broadband services that are enabled by the greater two-way bandwidth of Euro-DOCSIS 2.0.

"Using Euro-DOCSIS 2.0 to deliver its 24Speed service is a clear example of Liwest's intent to remain at the cutting edge of broadband service delivery," said Kishore Manghnani, vice president of marketing for Terayon. "The worldwide momentum for Euro-DOCSIS 2.0 and DOCSIS 2.0 is growing as deployments increase with cable operators recognizing their substantial performance and economic advantages. For instance, deploying a DOCSIS 2.0 CMTS today instead of non-2.0 CMTS can result in capital expenditure savings of up to 40% in the first year, and operational cost savings of as much as 40% over three years."

DOCSIS 2.0 and Euro-DOCSIS 2.0 are the latest cable broadband specifications respectively developed for North American and European cable networks. They incorporate all the advanced security and QoS capabilities of the previous versions and are updated with the addition of advanced physical layer technologies. These technologies enable the delivery of broadband services over cable operators' existing network infrastructures without costly upgrades. This helps operators reduce their capital and operational costs as they roll out new services or expand the penetration of their existing services.

The advanced physical layer technologies of DOCSIS 2.0 and Euro-DOCSIS 2.0 also increase maximum upstream throughput by as much as three times compared to previous versions. This greater upstream capacity enables operators to improve the performance of their existing broadband services and to offer telephony, online gaming, peer-to-peer computing and other services requiring substantial upstream bandwidth. Delivering new broadband services is increasingly important for operators worldwide as competition from satellite and DSL increase.

Terayon Communication Systems Inc.