SBC Communications Home Entertainment Service Wins 2005 International CES Innovations Award

2Wire MediaPortal™ integrates broadband and satellite, arming SBC companies with award-winning entertainment service

San Jose, Ca - January 3, 2005 - 2Wire, Inc., a provider of broadband service platforms for the DSL market, has won a 2005 International CES Innovations award for the SBC Home Entertainment Service (HES). Based on 2Wire’s newest MediaPortal™ set top box, the SBC HES integrates broadband services and satellite TV programming to complete the telecom provider’s triple play of voice, data, and video services.

The HES enables services such as multi-room digital video recording, media on demand, music management, and photo sharing, for a fully integrated experience of digital media convergence. It also allows users to record programs and access all media remotely through a Web-connected PC and in the future, through a Cingular wireless phone.

"2Wire’s MediaPortal platform enables us to bring our world class partners from the PC to the television," said Ed Cholerton, vice president of SBC DSL. "By then integrating our TV partners with our broadband services offering, we can create a fully integrated SBC digital home experience."

"This award is early validation of our vision to bring together best of breed Web content players with world-class television and broadband service providers to create the most compelling entertainment offering available," said Brian Sugar, vice president of marketing at 2Wire. "Our MediaPortal set top box arms telcos like SBC Communications Inc. with an immediate solution for delivering entertainment services, as they continue to build-out their next generation networks."

The HES will interoperate with 2Wire’s intelligent gateway product line and take advantage of the manageability and service deployment capabilities of 2Wire’s standards-based backend component management system (CMS). 2Wire’s CMS allows service providers to diagnose or troubleshoot technical issues and provide customized data, voice, and media services remotely, which minimizes service delivery and customer management costs. The HES is scheduled to be available to SBC customers in 2005.

Since 1989, the CES Innovations Awards program has recognized consumer technology products that exhibit excellence in design and engineering. The Industrial Designers Society of America (IDSA) endorses and acts as advisors to the program.

2Wire and SBC representatives will demonstrate the SBC Home Entertainment Service during CES, January 6 -9, 2005 in Las Vegas.

About 2Wire
2Wire is a provider of broadband service platforms for the DSL market. 2Wire’s suite of solutions offers DSL providers an integrated 'triple-play' of data, voice, and media services. 2Wire’s products and services include the award-winning HomePortal® residential gateways, the MediaPortal™ set top box, and a robust Component Management System (CMS) for service management and provisioning. 2Wire’s products are distributed exclusively by the major DSL service providers including SBC Internet Services, British Telecom plc and Telefonos de Mexico, S.A. de C.V. Headquartered in San Jose, California, 2Wire was founded in July 1998 by Brian L. Hinman, a co-founder of PictureTel Corporation (formerly NASDAQ: PCTL) and Polycom, Inc. (NASDAQ: PLCM).

2Wire and HomePortal are registered trademarks of 2Wire, Inc. MediaPortal, Greenlight, and HyperG are trademarks of 2Wire, Inc.