Aachen, July 10, 1997

The Deutsche Telekom AG Buys Modems from ELSA

ELSA and the Deutsche Telekom AG close a framework contract for 33.6 kbps modems

ELSA are supplying Deutsche Telekom AG with high-speed modems for sale under the name Teledat 33.6. These modems are supplied with an extensive collection of communications software; this includes the latest T-Online package with the Internet browser from Netscape and Microsoft Explorer; Tele Suite with fax, answering machine and organizer; Telix for Windows; and Page Mobil Software.

Mr. Gerhard Gatzmann, the product manager for multimedia systems at the Telekom AG: "The consistent high quality and the excellent price/performance relationship of the ELSA modem were decisive factors in our selection. The Teledat 33.6 will be marketed to complement our T­Online services, mainly via our mail-order service and our "T-Punkt" retail outlets. The aim is to continue the positive development of our on-line services."

Heiko Harbers, ELSA's business unit director for modems, adds: "The OEM cooperation with Deutsche Telekom has yielded overall positive results for several years now. We are delighted that the clientele of the Telekom Online services are able to take full advantage of the renowned ELSA modem performance."

ELSA AG is a privately-owned company based in Aachen, Germany, with subsidiaries in Santa Clara, California, and Taipei, Taiwan. Founded in 1980, ELSA has built up a world-renowned reputation for applying advanced engineering expertise to computer graphics and data communications products. Technological competence, German standards of quality, path-finding products and services backed up by excellent support: these are factors which firmly place ELSA at the forefront of the market today.

The ELSA logo is a registered trademark of ELSA AG. All other trademarks and registered trademarks previously cited are hereby acknowledged and recognized.

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