ELSA Announces Entry into the DSL Market for High-Speed Internet Access

March 15, 1999 - ELSA AG, which already announced Europe's first cable modem in October of last year, is at this year's CeBIT introducing the first solutions for high-speed Internet access based on the new DSL technology that operates via the conventional copper telephone lines used by European network providers.

The DSL (Digital Subscriber Line) communications technology will in the future be the alternative to cable modem technology, and operates via the existing telephone network system. DSL provides each household or connection with data transfer rates of up to 8 Mbps. Thus, ELSA has addressed the future needs for high-speed Internet access in both technological sectors-cable modems and DSL-based solutions. The competition which will arise between these two sectors will result in a significant fall in the cost of communications for both private and commercial users. Cable modems and DSL solutions will thus accelerate the bandwidth revolution and will intensify the competition to win customers.

According to independent market research, the European market alone will experience annual growth rates of around 150 to 250 percent. Thus the total number of DSL lines in Europe could reach 1.6 million, around 350,000 of those being for small and mid-sized companies.

ELSA counts to the very first of those taking part in these markets within Europe. Theo Beisch, President and CEO of ELSA AG, explains: "With the introduction of our new DSL-based products, ELSA is one of the very first companies to offer solutions in all of the coming Internet access technologies. In view of the recently announced expansion in Europe, the opportunities for growth are excellent."

ELSA AG develops, manufactures and markets PC hardware and software components for the data communications and computer graphics sectors. Its product range includes modems, ISDN adapters, videoconferencing systems, ISDN routers, graphics boards and monitors. ELSA was founded in 1980 and today has more than 550 employees. In addition to its headquarters in Aachen, Germany, it also maintains subsidiaries in Santa Clara, California, as well as Taipei, Taiwan and Tokyo, Japan. Since June 1998, ELSA AG shares are traded on the "Neuer Markt" trading segment of the Frankfurt stock exchange in Germany.

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