Hyperchip Implements True IP Quality-of-Service with Unprecedented Traffic Management Techniques

MONTRÉAL, May 28, 2002 – Hyperchip Inc, a leading developer of core IP systems, is announcing its traffic management capabilities next week at SUPERCOMM 2002. Incorporated in its carrier-class core IP system, these algorithms offer unprecedented performance, delivering high-quality bandwidth even during network congestion. This allows carriers to operate at much higher link utilization, greatly reducing operating and capital costs for both the routing and optical layers of a network, providing major operating advantages to network operators deploying enhanced IP applications.

The Hyperchip innovation consists of two patent-pending algorithms that provide internal traffic management capabilities across an entire system - supporting up to 128,000 individual QoS policies on each of up to 65,000 ports. Hyperchip's AQUA^TM (Adaptive Queue Utilization Algorithm) and SHARE^TM (SHaping And Resources Equalization) detect network congestion before it affects service quality. Working in tandem, AQUA and SHARE respond in real time to changing network conditions and maximize the efficiency of traffic delivery through the system, proactively ensuring that premium traffic receives guaranteed bandwidth, and greatly improving jitter and latency performance during peak loads so that even low-priority traffic receives high-quality service within network bandwidth constraints.

"Today's routers offer isolated QoS implementations such as ingress policing and egress congestion management," said Richard Norman, Hyperchip's President & CTO. "AQUA and SHARE improve upon these standard industry techniques by providing continuous system-wide awareness of network-generated congestion, and ensuring QoS policies are respected at every stage of the packet's journey through the system - enabling TDM-quality service in IP networks."

Hyperchip at SUPERCOMM 2002

Hyperchip will demonstrate the functionality of the PBR-1280 core IP system using the latest OC-192 Agilent RouterTester test platform at booth 10701, at the SUPERCOMM 2002 conference in Atlanta, June 4-6, 2002.

About Hyperchip

Based in Montreal and Dulles (Virginia), Hyperchip is defining the future of the Internet with cost-effective, high-performance IP systems that offer reliable, high-quality bandwidth at a fraction of the current costs. Hyperchip's core IP Systems are compatible with existing network architectures, reducing operating and capital costs while delivering the reliability and flexibility necessary to support high-revenue services that will enable carriers to generate improved margins from their IP networks. Hyperchip's carrier-class technology scales upward to route approximately 1,000 times more Internet traffic than today's solutions, eliminating the need for costly forklift upgrades for network operators.

Hyperchip has raised $220 million in financing since its inception. Its leading investors include TechnoCap, Siemens Venture Capital, Telesystem-Argo, Vertex Technology Fund, Advent International, Optical Capital Group, Altamira, Amerindo, Artemis, JT Ventures, Morgan Stanley, Pilgrim Baxter, Putnam Investments, and Van Wagoner Capital Management. For more information about Hyperchip,visit the company Web site at www.hyperchip.com.

Note: All funds are in Canadian currency, unless specified otherwise.

Media contacts

Alain Bourget,
Hyperchip Inc.
T. 514.906.2489
abourget@hyperchip.com

Jennifer Goldfinch,
Hyperchip Inc.
T. 514.906.4844
jgoldfinch@hyperchip.com

Hyperchip and the Petabit Routing Company are trademarks of Hyperchip Inc. Other trademarks identified in this release are the property of their respective companies.