SANTA CLARA, Calif. -- Terayon Communication Systems, Inc. (Nasdaq: TERN), a leading supplier of broadband network systems, today announced a definitive agreement to acquire Mainsail Networks, Inc. for 3.2 million shares of Terayon common stock. Based in Fremont, California, Mainsail Networks is a privately held company that designs, develops and markets integrated access solutions for next-generation broadband networks.

"The acquisition of Mainsail is a strategic addition to our broadband portfolio, representing Terayon's expansion in the access infrastructure and optical transport markets," said Zaki Rakib, Chief Executive Officer of Terayon. "In order to keep pace with the increased consumer demand for broadband capability, carriers are demanding systems that support advanced voice and data transmission between copper networks and fiber optic networks. Mainsail's cost-efficient, integrated platform provides versatility for the next generation of voice, data and video services."

http://www.terayon.com/news/newsrelease/2000newsrelease/080100.shtml