Phonex to Surpass 11 Million Powerline Devices Shipped

Phonex builds upon success by field testing innovative ReadyWire Powerline Home Communications Chip

January 8, 2004 - Salt Lake City, UT - Phonex Broadband TM Corporation (www.phonex.com), a world leader in Power Line Carrier (PLC) voice and data communication devices, today announced that in January 2004 it will surpass 11 million powerline devices shipped. While acknowledging this achievement, Phonex will build upon its success by field testing the new ReadyWire Powerline Home Communications Chip in the coming weeks. The ReadyWireTM Powerline Home Communications Chip recently won a Prestigious 2004 International CES Innovations Design and Engineering Showcase Honoree Award in the Software/Embedded Technologies Category. The new ReadyWireTM Chip will be demonstrated at the Phonex Booth #23014 in the South Hall Upper Level of the Las Vegas Convention Center at the 2004 International CES Show. Samples will be available late Q1, 2004.


"Phonex always expected this level of success with the Wireless Phone and Modem Jack products," said John Knab, CEO Phonex. "However, we may ship hundreds of millions of ReadyWire chips because of its high integration and low cost design for Connected Home applications. With this exciting new communications technology, Phonex has a significant head start in the race for the connecting everyday devices in the home."

The Phonex ReadyWire chip provides developers with vastly improved methods for connecting every type of device in the home with voice, streaming audio, Internet video and home automation control. In addition, this new chip uses an ARM 946 processor core with up to 100 MIPS of reserve power. Developers will be able to access this processor to operate other device functions such as device control, modems and MP3 decoders to realize a significant savings in overall system design costs. Its TimeSlot QoS provides a new level of bandwidth management, enabling multiple streams to function without degradation to performance. Co -existent with other powerline technologies, the patented ReadyWire design also offers a broad range of development interfaces. With its available processor power, integrated peripherals and multi -media connectivity, the ReadyWire ASIC chip will enable a new market of inexpensive, connected devices for the home.

Phonex is well known for its powerline phone jacks. Protected by a strong patent portfolio, the powerline to phone products have been offered through OEM relationships at nearly every major retailer in the United States. Known as the "Wireless Phone Jack" in retail, these products allow the installation of a new phone jack at any electrical outlet. The satellite set -top -box industry has used the Wireless Phone Jack for years to offer a phone connection for their network communication. Phonex' powerline communications experience and years of product development success offer a powerful combination for developers. The ReadyWire Chip will offer a powerful, highly integrated, easy to develop platform for communications within the connected home.
For more information about Phonex products or their availability, readers can contact Phonex at www.phonex.com.

About Phonex
Founded in 1988, Phonex Broadband Corporation, based in Midvale, Utah, is a privately held company recognized as the world's largest supplier of powerline -based voice and data products. Phonex Broadband's proprietary technology enables telephone and data devices to communicate reliably using standard electrical wiring. The technology is protected by multiple patents. Phonex has sold more than 11 million powerline products worldwide and was the first company to market a broadband networking device that turns any electrical outlet into a 10BaseT Ethernet port. Phonex is a member of CEA, the Consumer Electronics Association, and the HomePlug Powerline Alliance.

Phonex Broadband, ReadyWire, and TimeSlot QoS are trademarks of Phonex Broadband Corporation. All other company names and trademarks are the property of their respective companies.

PR Contacts:
Cheryl Snapp or Tim Rush
Snapp Norris Group (SNG)
1.801.226.3223
1.801.226.3883 fax
cheryl.snapp@sng.com or tim.rush@sng.com
Company Contact:
Brad Warnock, VP Business Development
Phonex Broadband
1.801.984.5107
1.801.984.5007 fax
bwarnock@phonex.com

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