FIBERLINK

Software Solutions and Managed Services Offerings Drive Approximately 26% Increase in Revenue

March 24, 2005

BLUE BELL, Pa. – March 23, 2005 –Fiberlink Communications Corp., a leading innovator and trusted enterprise partner for secure mobile workforce solutions, today announced that revenues increased approximately 26 percent in unaudited results for the full year ended December 31, 2004 compared to 2003. Fiberlink also posted its 16th consecutive quarter of sequential revenue growth while recording its second consecutive full year of operating profits. The company’s growing software and managed services business also contributed to record gross margins during 2004.

“In 2004, Fiberlink introduced Extend360™ to tap new opportunities in the mobile services marketplace. Our strong performance in 2004 reflects a successful roll-out of this software solution to new and existing customers,” said Jim Sheward, chief executive officer of Fiberlink. “ In 2005, Fiberlink will continue to innovate by introducing new service offerings, new pricing plans and developing new sales channels to continue our rapid growth. By doing so, we will distance ourselves from the competition by further expanding our managed services portfolio beyond pure-play access to include new endpoint security and software services.”

“With ever greater numbers of mobile work scenarios and endpoint devices, businesses have more flexibility in their communications strategy than ever before,” said Kitty Weldon, Principal Analyst, Enterprise Mobility, at Current Analysis. “Despite this obvious benefit, the intensifying complexities and security threats associated with managing and supporting a mobile workforce are making secure remote access incredibly challenging for IT staff. Those enterprises with solutions that can best handle the opposing forces of mobility and security will be best positioned for success. Fiberlink’s performance in 2004 suggests the growing significance of these drivers and increased market adoption of secure mobile workforce solutions.”

In 2004, Fiberlink signed 192 new contracts representing approximately 300,000 new users based on strong demand for its access solutions. This contributed to the company’s largest annual revenue and overall growth to date. However, growth in the area of software and managed services was even more impressive, generating 23 percent of Fiberlink’s total revenue. Throughout 2005, demand for reliable and ubiquitous access will continue as more people work remotely and enterprises move to adopt wireless roaming technologies to meet their employees’ needs. As a market leader in delivering a combination of access and security in a unified software solution, Fiberlink is uniquely positioned to capitalize on industry trends.

Several highlights from the company’s performance in 2004, based on market research, include:

• First to introduce “All Access” data plan – a flat rate for unlimited access to any and all of the networks Fiberlink provides: Wi-Fi, dial-up, wired roaming broadband and CDMA.
• First company to offer an integrated CDMA solution (software, card, service, etc.) in both the U.S. and China.
• Fiberlink and BigFix introduce first solution to fully manage patch and security configurations for remote endpoints.
• Fiberlink strengthened its distribution channels to include 29 new partners to resell its award-winning remote access platform, Dynamic Network Architecture™ (DNA).
• Announced a partnership with VeriSign to develop new authentication solutions that address the needs of enterprises looking for support for devices such as tokens, smartcards, SIM cards, and others where no user response is required.
• Secured a $20 million revolving credit facility from Wachovia Bank.
• Partnered with Sierra Wireless to add CDMA protocol for ubiquitous wireless connectivity. New service plans can now address every wireless need of enterprise customers, including coverage, full security, support and cost control.
  

Hundreds of enterprise customers and partners rely on Fiberlink to help them respond to the challenge of integrating connectivity with protection from security threats by deploying software and layered endpoint security services in an affordable, integrated package. Fiberlink helps these enterprises provide their employees with secure mobile workforce solutions in over 150 countries worldwide. Due to its business growth this year, Fiberlink has about 220 employees and is moving to a new corporate complex that offers room for further growth.

About Fiberlink

Fiberlink provides the software and services that enable enterprises to securely mobilize their workforces and strike the best balance of user productivity and IT control. More than 800,000 mobile workers have relied on Fiberlink’s ubiquitous Wi-Fi, wide-area wireless, broadband and/or dial-up solutions for “no-hassle” access to e-mail, data and other network-based resources. Fiberlink’s mobile workforce solutions go beyond basic network connectivity to ensure IT organizations have total control over the myriad security threats, compliance policies and cost concerns that are often associated with mobile computing. Gartner, Yankee Group and Burton Group consistently recognize Fiberlink as an innovative leader in mobile and remote access solutions. Fiberlink customers include Continental Airlines, Grant Thornton and Targus Group International. Headquartered in Blue Bell, Pa., Fiberlink has offices throughout North America, Europe and Asia. Additional information about Fiberlink is available at www.fiberlink.com .

Susan Sutton
Fiberlink Communications Corp.
ssutton@fiberlink.com
(215) 793-3427

James Boike
A&R Partners for Fiberlink
jboike@arpartners.com
(212) 905-6157

© 2005 Fiberlink and the Fiberlink logo are trademarks of Fiberlink and may be registered in certain jurisdictions. All other brand names are trademarks of their respective partners.