FIBERLINK

Revenue from Software Up 85%

September 13, 2005

BLUE BELL, Pa. – Sept. 13, 2005 – Fiberlink Communications Corp., a leading innovator and trusted enterprise partner for secure mobile workforce solutions, today announced growth in revenue from software sales of 85 percent for the first six months of 2005, as compared with the same six-month period of 2004. This marks significant progress towards a new software segment for Fiberlink, and a significant milestone as the company broadens its product offering beyond pure connectivity services. During the first half of 2005, Fiberlink rolled out a new pricing model tailored to its software products, which are now available on a recurring per-seat license.

“Over 70% of all new customers added in the first six months of this year are paying Fiberlink for our Extend360 software. By combining software and services, we are experiencing real traction in the marketplace and are leading the enterprise mobility and security space in a shift from basic connectivity services to comprehensive mobile workforce solutions,” said Ed McCrossen, president of Fiberlink. “Since late 2004, Fiberlink has developed innovative software pricing plans, often with no up-front expenses, to give customers greater flexibility in acquiring Fiberlink’s technology, and we have added new channel partners to further fuel our growth.”

Since its inception, Fiberlink’s financial revenue model was based on long-term, minimum commitment customer contracts and connectivity revenues. During the first half of 2005, however, Fiberlink delivered new cost benefits and flexibility through subscription-based “pay as you go” software and services that are easier to deploy and offer long-term service relationships that will evolve to meet customers’ needs. At the same time, Fiberlink has added new software-driven capabilities by partnering with Skype, an Internet-based telephony provider, and adding anti-spyware solutions to its Endpoint Vulnerability Management (EVM) services. It has also strengthened it service portfolio by introducing a new EVM service called Real-Time Remediation™. Unlike many other security software solutions, Fiberlink’s Real-Time Remediation service continuously inspects mobile computing devices, detects out-of-compliance conditions, and fixes problems before a mobile worker connects to the corporate network. The company also added an EV-DO wide-area wireless service to its access portfolio to give mobile workers a broader range of connectivity options.

“Fiberlink is making significant headway in carving out its place in the market by focusing on software and security instead of simply providing connectivity like carriers, or aggregating networks like its direct competitors,” said Kitty Weldon, an analyst at Current Analysis. “Companies can better manage the growing group of mobile and remote workers with a unified software solution that helps IT to easily implement security policies, increasingly important as more employees are using public Wi-Fi, instant messaging and other potentially insecure connectivity methods.”

During the first half of 2005 Fiberlink achieved the following additional milestones:

• Sold its 230,000th seat of Extend360, its flagship mobility software;
• Introduced Real-Time Remediation™, the first service of its kind to continuously inspect mobile computing devices, detect out-of-compliance conditions, and immediately fix the problem before a mobile worker is allowed to connect to – and potentially infect – the corporate network;
• Partnered with Sprint to develop its Extended Workplace software, which is powered by Fiberlink’s underlying Dynamic Network Architecture™ platform;
• Expanded its wide-area wireless portfolio by adding a high-speed EV-DO service to its access arsenal, which already includes hotel and home broadband, Wi-Fi, CDMA 1xRTT and dial-up connections;
• Received recognition from Cisco as a Managed Security Service Provider Advanced Technology Provider (ATP);
• Positioned in Gartner’s Leaders Quadrant for 2005 Managed Remote Access & Mobility Services Magic Quadrant for the fourth consecutive year;
• Moved headquarters to a 36,000 square foot facility in Blue Bell, PA;
• Opened a software development facility in India to increase productivity and better serve customers throughout the world.

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. Since 1994, more than 800,000 mobile workers have relied on Fiberlink’s solutions for access to e-mail, corporate data and other network-based resources. Today, Fiberlink’s mobile workforce solutions go beyond basic network connectivity to ensure IT organizations have 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) 664-1753

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.

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