Shareholder Update

Tough Times for Telecom "Prosperity is not without many fears and distastes; and adversity is not without comforts and hopes." Sir Francis Bacon

We've Been Working Hard Maintained profitability Generated operating cash Solidified market positions Won new business Focused R&D for the future

What We Do

Our Telco Solutions

Our Cable Solutions NetMentor(tm)

Sales and E.P.S. 2001 2002 SALES 82.2 58.6 $58.6 MILLION $82.2 MILLION E.P.S. $0.25 E.P.S. $1.02

In 2002 We maintained a gross profit of 56.3% We put 5.7% of revenue to the bottom line We right-sized our business We reduced our quarterly breakeven point, eliminating approximately $3.6M in annual expenses We generated $17.6M in cash from operations

Line Loss

Market Capitalization IPO 12/14/95 YE 12/31/02 East 65.3 159 $159 MILLION $65.3 MILLION

New DSL Business

DigiTest(r)

International and Independent Sales

Research & Development

Into 2003

Thank You Questions/Comments