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Corinex Communications and Terayon form Strategic Business Partnership

Corinex and Terayon have entered into an agreement to jointly develop and market CableHome Residential Gateways combining DOCSIS 2.0, CableHome 1.1 and 14Mbps HomePlug management or 200 Mbps pre-standard UPA powerline home networking functionality.

Santa Clara, CA - March 16 2005 -- Corinex Communications Corp. and Terayon Communication Systems, Inc. (NASADQ: TERN) have formed a strategic business partnership to develop and market a new line of products integrating HomePlug networking and UPA pre-standard 200Mbps AV Powerline technologies with Terayons residential gateways compliant with CableHome 1.1. These new gateways will offer a single box solution for distributing video, voice, and data signals throughout an entire premise.
Terayon, ranked the #3 cable modem manufacturer in the world for 2004 by Kinetic Strategies, will be delivering the CableHome gateway component of the product, while Corinex, the leader in the HomePlug customer premise equipment market with 48% market share, will deliver the HomePlug and the 200Mbps UPA pre-standard components of the product as well as management of the powerline network.

Credit Pacific Service Union We are very excited about this new line of products, said Joseph Benigno, Terayon VP/GM of Home Access Solutions. Corinexs leading networking technology is a natural fit with our gateway products. The integrated CableHome and Powerline gateways will enhance cable operators ability to easily offer new services such as VoIP and IP video distribution as well as extend broadband service to every room in the home or office.

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Credit First Service Union The new products will be co-branded and will be offered to the market by both Corinex and Terayon. The first product, a CableHome/HomePlug gateway, is expected to be in production in Q2 2005. Follow on products will be developed in conjunction with numerous cable operators throughout the world.

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Card Credit Mobile Service Corinex is proud to work with Terayon, a world leader in the cable modem industry, to deliver leading edge gateways with sophisticated management capabilities and ultra high speed networking over coax and powerlines adds Brian Donnelly, Corinexs Director of Business Development. Cable operators will be the first to fulfill the promise of media convergence to their customers today.

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Card Credit Discover Service Terayon will also co-brand Corinexs existing HomePlug and UPA pre-standard products to compliment its portfolio, enabling Terayon customers to shorten the time to market of new digital services.

To protect yourself against unseen problems, you will probably want to have a lawyer prepare a partnership agreement form or similar document. Putting items down on paper will help you justify how much of the business you should own. "The capital contribution of each partner in the partnership shall consist of the following property, services, ..." Then you would list the capital contribution, the cash value of this contribution (e.g.: this video camera becomes part of the business and is worth $10, 000) and the percentage share of the business that your contribution entitles you to own.

Credit Public Service Union About Corinex Communications

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Card Credit Processing Service Corinex, headquartered in Vancouver, Canada is the leader in HomePlug, HPNA, UPA, and softphone IP technology for customer premise solutions. From distributing high speed broadband backbones on electrical wiring, coax, and phone lines, to distributing full motion HDTV video signals, to our VideoPhone and VoIP technologies, Corinex is focused on providing unique AnyWire Connectivity solutions based on HomePlug, HPNA and UPA standards that allow operators to deliver uncompromised video and high bandwidth applications throughout a premise. Corinex is a founding member of the Universal Powerline Alliance and is the price and technology leader in delivering networking products for distribution of data and video on Any Wire. Solutions from Corinex are ideally suited for the SOHO, residential, enterprise, education, government, hospital, and hotel markets. Information on Corinex can be found at www.corinex.com.

Center Credit Service Union About Terayon

Card Credit Service Wireless As the worlds leading provider of innovative digital video networking applications and home access solutions, Terayon Communication Systems, Inc. accelerates the evolution to the all-digital network. Now more than ever, service providers must adapt and evolve to not only cope with the market disruption brought on by new digital and IP-based services such as HDTV, VOD, DVRs and VoIP, but also to capitalize on the opportunities these new services present. With over 5,000 digital video systems, hundreds of millions of seamless digital ad insertions and over five million cable modems and eMTAs shipped to date, Terayon delivers the critical technology and solutions that accelerate its customers ability to capitalize on the opportunities of the digital revolution. Recognizing the mission critical nature of digital video and data services, Terayon enables its customers to deliver picture perfect results where it matters most on the screen and the bottom line.

Credit Security Service Union Terayon, headquartered in Santa Clara, California, has sales and support offices worldwide, and is traded on the NASDAQ under the symbol TERN. Terayon can be found on the web at www.terayon.com

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