TCA Buys More Terayon Modems

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Following a successful launch of cable modems made by
Terayon Communication System that started in February, TCA Cable TV last week placed a
10,000-unit order for the high-speed data gear.

TCA executives said they've already seen "a
significant revenue increase" from high-speed data services so far, and that it is
making significant progress toward its goal of a 15 percent penetration rate for cable
modems.

"We continue to be impressed by the speed with which
the Terayon modem systems can be deployed across our systems," said Bob Roseman, vice
president of business development for TCA, referring to what Terayon executives described
as installations that can be conducted without the need for a technician, 80 percent of
the time.

TCA executives also said that within five years, they
expect half of their subscriber revenue to come from business customers using data
services.

TCA's work with Terayon so far has occurred in its
Bryan/College Station, Amarillo and Tyler, Texas, systems. It plans to expand the service
to its San Angelo, Texas, system, as well as its Lake Charles, La., and northwest Arkansas
properties, executives said.

Zaki Rakib, CEO of Terayon, said that TCA's increased
order commitment demonstrates that "a well-run cable operator, with a focus on data
services, can rapidly deploy new services and gain incremental revenue from
subscribers."

Terayon is readying itself to go public this year. Its
equipment delivers bidirectional data speeds of 14 megabits per second, as well as quality
of service tiering capabilities that let operators guarantee bandwidth in increments as
small as 64 kilobits per second, Rakib said.

While Terayon's S-CDMA system does not comply with the
industry standard known as DOCSIS (Data Over Cable Service/Interface Specification), work
is under way to add the interoperability specification, executives have said.

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