Intel Invests In Formus To Speed The Deployment Of Wireless Broadband Communications In Poland

SANTA CLARA, Calif./Denver, Colo., Sept. 13, 1999 -- Intel Corporation and Formus Communications today announced that Intel has invested in Formus. Formus is currently deploying "last mile" broadband wireless access (BWA) networks in Poland and other countries to provide Internet and data services.

Intel's investment will help Formus in its efforts to build out its networks, providing improved broadband Internet access to small and medium-sized businesses, as well as to finance business development activities in Europe. In addition to its investment, Intel will work with Formus in seeking opportunities to market Formus' BWA services through resellers of Intel products in certain Polish cities.

"Intel's investment is consistent with the company's ongoing commitment to facilitate the deployment of broadband services that help fuel the growth of the Internet for e-Business," said James H. Yasso, vice president, Intel Architecture Business Group, and general manager, Reseller Products Division. "In emerging markets such as Poland, offerings such as Formus' are critical to enabling companies to participate in the Internet economy."

"We at Formus are indeed delighted to be working with Intel," said Osmo Hautanen, CEO of Formus. "Clearly, any company doing business on a global scale needs to have the resources to deliver its products and services. Intel's investment and its marketing support will help us in our efforts to expand our offerings."

With BWA, Formus seeks to extend into geographic markets where expensive wireline alternatives may not be readily feasible or cost effective, or where a broadband infrastructure does not currently exist.

About Formus Communications
Formus Communications, Inc. intends to integrate cost-effective, high-capacity broadband wireless access (BWA) technology to provide its customers with reliable high-speed Internet service, high-speed data transmission, video and voice services. Formus is focusing primarily on markets in Europe. Through an affiliate, the company is presently involved in projects delivering BWA services in Poland. Callino, a wholly owned Formus subsidiary, recently launched CLEC services in Germany. Formus also holds licenses in Finland, and is operating under temporary test licenses for BWA projects in France and Hungary. In August 1999, Formus contributed its Latin American assets and cash to VeloCom Inc. and became a 20.5 percent shareholder in VeloCom. VeloCom holds broadband licenses in Colombia, Peru and Argentina, and mirror licenses in Brazil, covering 206 million population units in Latin America.

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