Com21 Asset Liquidation Green-Lit

MILPITAS, Calif. -- Com21, Inc. (OTC Bulletin Board: CMTO), today announced that a hearing was held on August 27, 2003, to obtain approval from the US Bankruptcy Court (in and for the Northern District of California, San Jose Division) for Com21's proposed sale of its remaining operating assets as well as substantially all of its remaining miscellaneous personal property assets in liquidation sales.

The approved sales were for Com21's video product line assets, for its DOCSIS modem test equipment assets, for its ATM modem inventory assets, and for the remaining miscellaneous personal property assets of Com21. Com21 reiterated that proceeds received to date and those expected from the remaining liquidation sales will not be sufficient to pay the approximately $25,000,000 in creditor claims that Com21 believes are outstanding, and that Com21 continues to stress that its outstanding stock is without value.

On July 15, 2003 Com21 announced that it had filed a Voluntary Chapter 11 Petition under Chapter 11 of the U.S. Bankruptcy Code with the U.S. Bankruptcy Court for the Northern District of California [Case No. 03-54533 MM]. Com21 has since been operating as a debtor-in-possession pursuant to Sections 1107 and 1108 of the Bankruptcy Code.

On August 1, 2003, Com21 announced that it had reached agreement to sell its key DOCSIS product line assets. No overbids were received and on August 7, 2003, the Bankruptcy Court approved the sale. Com21's creditors committee opposed the use of proceeds from the sale to fund any ongoing operations and Com21 received purchase offers for its video product line assets, its DOCSIS modem test equipment assets, and its ATM modem inventory, the sales of which have been approved. On August 31, 2003, Com21 terminated substantially all employees and on September 5, 2003, Com21 plans to surrender its remaining premises. Thereafter, Com21's activities will be limited to collection of receivables, resolution of disputed creditor claims, and other administrative tasks necessary to bring the bankruptcy case to conclusion. No distribution to holders of Com21 common stock is contemplated or anticipated.

Com21 Inc.