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Optical/IP

Adaptive Broadband Revises Returns

SUNNYVALE, Calif. -- Adaptive Broadband Corporation (Nasdaq:ADAP) announced today that it expects to restate its revenue and cost of revenue for the quarter ended June 30, 2000. The company currently expects that its revenue and cost of revenue for the quarter will be reduced by $4.0 million relating to a sales transaction recorded during the quarter that the company now believes should not have been recognized. After this restatement, revenue for the quarter would be $13.1 million. The company does not expect the restatement to affect its gross margin or net loss from continuing operations. As previously announced, as of December 31, 2000, the company significantly increased its allowance for doubtful accounts to reflect the condition of certain customers involved in several sales transactions, including the one that requires the restatement.

The company also said that its new management team is working with the company's Board of Directors, auditors and outside counsel to determine whether any other similar transactions exist in the same or other accounting periods, and if so, what actions, if any, may need to be taken with respect to them. The company hopes to be in a position to make this determination by March 30, 2001. Based on this review, the company will take whatever steps may be necessary so that its financial reporting practices for all past and future periods conform in all respects to applicable accounting standards.

http://www.adaptivebroadband.com
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