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Hitachi Cable hereby announces the introduction of the following products, with which the company aims to advance into the domestic market for regional area networks (RAN) *1 and develop VVoIP (Video and Voice over IP) solutions before the arrival of the broadband communications era.

1. Next-Generation GMX oWAVE Series/eWAVE Series

The demand for Ethernet networks that are faster and less expensive than existing synchronous optical networks (SONET) (note 4) and networks adopting the asynchronous transfer mode (ATM) (note 5) is rising in both the metropolitan area networks (MAN) (note 3) market and the RAN market as wide-area Ethernet networks (note 2) grow in use and subscriber networks based on ADSLs and FTTH circuits launch broadband services at an accelerated pace. Hitachi Cable has responded to the demand for faster and less expensive Ethernet networks in the MAN market and helped many telecommunications carriers develop wide-area Ethernet networks by offering them an originally developed combination of gigabit Ethernet multiplex transmission devices (GMX) and gigabit Ethernet switches. However, numerous problems have stalled the application of these devices in the RAN market: the need to provide Ethernet networks (1) the capacity to accommodate multiple protocols (such as gigabit Ethernet, SONET, fiber channel, and other protocols); (2) the requirement for reliability equivalent to that of SONET; and the need for (3) capacity to support long-distance transmission in 200-kilometer to 700-kilometer classes.
Hitachi Cable developed Next-Generation GMX, the oWAVE series and the eWAVE series as solutions to these problems.

(1) Characteristics of the eWAVE Series

The eWAVE series is a next-generation transmission device. Hitachi Cable took the pioneering step of using a digital wrapper (note 6) for Ethernet transmission, and when the eWAVE series reaches the market Hitachi Cable will become the first company to apply digital wrappers to Ethernet services.
With a real-time error correction mechanism, a characteristic of the digital wrapper, the eWAVE series makes Ethernet networks far more reliable. It will also enable Ethernet networks to offer transmission over greater distances.

(2) Characteristics of the oWAVE Series

The oWAVE series consists of a wavelength division multiplexing devices that feature low transmission loss. Devices in this series enable a single optical fiber cable to transmit signals in eight different wavelengths. The oWAVE series is equipped with an add/drop mechanism, which allows the devices to channel any wavelength in and out of transmission routes. The oWAVE series allows for the establishment of all-optical networks (note 7) when it is used in combination with the eWAVE series. The oWAVE series is extremely dependable because the units are passive, employing no power source, thereby enabling users to construct more stable networks.
Hitachi Cable considers these two new series to represent the first generation of these devices, and plans to develop second-generation versions by the end of 2003.
The digital wrapper allows the first-generation eWAVE series, which will be released shortly, to accommodate various protocols. Hitachi Cable plans to supply the second-generation device with additional capacity to accommodate SONET and other protocols used in the RAN market. The company is also currently developing second-generation oWAVE series devices that incorporate an optical amplifier. When completed, these devices will enable users to transmit optical signal over a maximum distance of 1,000 kilometers without using an expensive transmitter-responder relay. The second generations of the oWAVE and eWAVE series will also solve the majority of problems currently troubling the RAN market, including (1) difficulties in multi-protocol transmission, (2) reliability, (3) problems in long-distance transmission, and (4) cost.
Hitachi Cable aims to expand into the RAN market currently dominated by SONET by proposing that all optical regional networks incorporate its oWAVE and eWAVE series.
Hitachi Cable expects the two series to achieve 300 million yen in sales in fiscal 2004.

2. Internet Gateway "Througate" (Firewall Solution in Compliance with H.323 *8)

Teleconferencing is drawing increased attention at the moment as a multi-media application of high-speed IP networks. More and more major companies are now building in-house IP networks with privately leased circuits and wide-area Ethernet networks to take advantage of teleconferencing systems. At the same time, the demand for low-cost teleconferencing via ADSLs and FTTH circuits is increasing among companies with large numbers of business affiliates, as well as small- to medium-sized enterprises.
Until now, most companies unable to build in-house IP networks have used ISDN for teleconferencing. However, a reliance on ISDN keeps conference costs high because NTT bases ISDN charges on the service period. ADSLs and FTTH circuits have offered alternatives, but in these cases a broadband router or a firewall was necessary when teleconferencing. These devices require companies to secure IP addresses for all terminals they may use for conferences, and this requirement causes various administrative problems. For example, it forces companies to update their record of terminal-based IP addresses each time they install or move a terminal in their offices. Inter-company teleconferencing presents other problems. There has been no Internet gateway for establishing an IP network for inter-company teleconferencing, and this has made it necessary for companies wishing to conduct such teleconferencing to use ISDN or telecommunications service providers offering special mediation services.

Througate, an Internet gateway developed by Hitachi Cable for teleconferencing, acts as a replacement for the broadband routers now in wide use, and it can also be used in combination with a firewall.

Througate is equipped with a mechanism for assigning calls to extensions, and this means that each Througate requires only one IP address. Users can transfer incoming calls to designated terminals within the workplace, thereby avoiding the need for IP address maintenance.
Companies can install a pair of Througates at their offices and those of their business partners and call up teleconference terminals directly without asking telecommunications service providers for special mediation services.
Hitachi Cable has enabled Througate users to call the other party to a teleconference via websites or emails, so users can initiate a teleconference simply and easily.
Hitachi Cable has achieved steady results as the sales agent of leading global teleconferencing systems developed by Polycom Inc. of the United States, the supplier of such systems. By adding Througate to Polycom products, Hitachi Cable intends to appeal to companies that had been unwilling to introduce a teleconferencing system using IP networks, expand its market share, and increase teleconferencing system sales.
Teleconferencing systems sold by Hitachi Cable had a total value of two billion yen in fiscal 2003, and the company plans to raise this figure to three billion yen in fiscal 2004 by introducing Througate and undertaking various other projects.

*1	RAN stands for Regional Area Network. RAN is a generic name for networks that link urban communities with one another (over distances of 200 kilometers to 700 kilometers).
*2	Ethernet is a registered trademark of Fuji Xerox Co., Ltd.
*3	MAN stands for Metropolitan Area Network. MAN is a generic name for networks that link urban communities with one another (over distances of 200 kilometers or less).
*4	SONET stands for Synchronous Optical Network. SONET is a high-speed digital communications system that employs optical fiber cables, functioning as the Internet backbone by linking Internet service providers.
*5	ATM stands for Asynchronous Transfer Mode. Data, voice, and other types of information are divided into 53-byte, fixed-length cells for transmission in this mode. A switchboard referred to as an ATM switch is used for distributing data to designated destinations permitting ATM to take advantage of high-speed transmission routes, including those utilizing optical fiber.
*6	Digital wrapper is a frame format for optical transmission. The International Telecommunication Union-Telecommunication Standardization Sector (ITU-T) included this technology in its recommendation numbered G.709. The digital wrapper users transmit data by wrapping data packets with channel headers and forward error correction (FEC) devices which enable data receivers to make corrections on a real-time basis within frames.
*7	All-optical networks increase complexity and cost of machines and devices because they control transmission routes by converting optical signals into electrical signals (and vice versa) at cross-connection points. All optical regional networks reduce the network development cost by eliminating part of this conversion process and simplifying the network structure.
*8	H.323 is a standard for multi-media communications systems that operate on IP networks. The ITU-T developed this standard.