ISP/CLEC In-a-Box Turn-Key Solution offered through Palomar Network Systems and ISG-Telecom Strategic Partnership
Delivering Industry-Leading Internet & Class 5 Solutions for the ISP/CLEC

Rancho Santa Margarita, California Oct. 25, 1999 — Palomar Network Systems worldwide, today announced that ISG-Telecom has joined in a strategic partnership with Palomar to offer ISPs (Internet Service Providers) a single stop solution for CLEC hardware acquisition and state by state CLEC/IXC certification. This partnership will offer state-of-the-art "turn-key" CLEC-In-a-Box solutions, that will enable new and existing ISPs to offer their customer base an alternative to the established ILEC. (Incumbent Local Exchange Carrier) This includes solutions that integrate Palomar’s sophisticated computer telephony software with Excel’s programmable state-of-the-art Expandable Switching System (EXS) and ISG-Telecom’s proven expertise in the CLEC/IXC certification process.

Palomar Network Systems’ innovative MAXXSWITCH, implemented on the EXS/RAS platform, provides a unique Class 5 solution that enables ISPs to: 1) have their own facilities based telephone service, (local dial tone) with, 2) expanded custom calling features, 3) provide internet access, and "open" standard DSL, while 4) functioning as an equal access end office carrier with 5) a minimal investment in hardware and software and space.

Unlike the legacy equipment typically used by service providers, MaxxSwitch is a non-proprietary solution that can be quickly and easily customized to meet the growing needs of subscribers and the changing regulations of the telecommunications industry. The solution comprises three components that work in tandem to provide a wide range of telecommunications services. Its components include Palomar’s Smart Telecom Host and the Maxxsys2000 Integrated Access Unit and Excel’s EXS platform.

"Today's announcement builds on the ISG-Telecom foundation to provide its ISP/CLEC clients a turn-key solution. "In our efforts to offer comprehensive choices to our clients, we are constantly searching for secondary market solutions", said Joseph Isaacs, ISG-Telecom CEO. "With the focus of both organizations concentrating on the ISP to ISP/CLEC arena, this strategic partnership enables them to utilize even more of ISG-Telecom’s relationships", Isaacs added.

"Our ISP customers demand that we have knowledge to help them achieve higher margins and deploy new services. Our relationship with ISG-Telecom gives our customers instant access to a team of CLEC professionals. Combined with our state-of-the-art ‘CLEC in a Box’ equipment and software, we are uniquely qualified to help an ISP become a successful CLEC, faster, more economically and with greater service offerings than the competing ILEC, " said Kevin Wilson Vice- President, Palomar Network Systems.

"We are pleased to partner with a company of ISG-Telecom’s caliber," continues Wilson. "We believe that ISG-Telecom offers superior expertise in this emerging market. By combining our CLEC-in-a-box with ISG-Telecom experience, we offer a combined solution that gives our customers a competitive edge — a customizable platform that is scalable and cost-effective, along with the fastest most effective route to CLEC/IXC knowledge and certification."

Further information about product offerings is available at ISPcon Palomar Network Systems Booth # C413.

About ISG-Telecom Consultants, Int’l. (www.isg-telecom.com)
ISG-Telecom Consultants has its corporate headquarters in Tampa Bay, Florida and handles projects on a national basis. ISG-Telecom provides an array of services including CLEC/IXC state certification and tariff filing, federal certifications, marketing suggestions and tariff writing, interconnection agreement negotiations and strategies, switch selection and facility based service deployment including project management, billing/customer service establishment, equipment recommendations, vendor negotiations and business case models. The main focus of ISG-Telecom has been ISP to ISP/CLEC turnkey solutions.

Basically, ISG-Telecom is the glue that holds together the different levels of expertise for those who are entering the telephony business. The ISG-Telecom staff consists of regulatory attorneys, project managers, engineers, back office specialists, sales/marketing trainers, and negotiation experts with 100+ years of combined expertise in the telecom industry.

About ISG-Telecom Consultants, Int’l. (www.isg-telecom.com)
ISG-Telecom Consultants has its corporate headquarters in Tampa Bay, Florida and handles projects on a national basis. ISG-Telecom provides an array of services including CLEC/IXC state certification and tariff filing, federal certifications, marketing suggestions and tariff writing, interconnection agreement negotiations and strategies, switch selection and facility based service deployment including project management, billing/customer service establishment, equipment recommendations, vendor negotiations and business case models. The main focus of ISG-Telecom has been ISP to ISP/CLEC turnkey solutions.

Basically, ISG-Telecom is the glue that holds together the different levels of expertise for those who are entering the telephony business. The ISG-Telecom staff consists of regulatory attorneys, project managers, engineers, back office specialists, sales/marketing trainers, and negotiation experts with 100+ years of combined expertise in the telecom industry.

About Palomar Network Systems
Palomar Network Systems offers innovative network service solutions that enable telephone service providers to maximize their investment in telecommunications equipment. Based in Rancho Santa Margarita, Calif., the company is distinguished by its ability to provide flexible and cost-effective solutions that can be customized and scaled to meet the exact requirements of the network service provider. On-line product information is available on the Palomar web site, www.palpro.com/network.htm

This release may contain statements which are "forward looking," and is subject to risks and uncertainties that could cause actual results to differ significantly from expectations. Factors that might cause such a difference include, but are not limited to, those relating to Excel's highly competitive market; dependence on and concentration of relationships with application developers, original equipment manufacturers and systems integrators; evolving market for telecommunications services and rapid technological change; possible delayed or lengthy sales cycles; risks associated with concentrated product family and new product introductions; Excel's dependence on its proprietary rights; and other risks identified in the Company's Securities and Exchange Commission filings including those risks identified in the section entitled "Risk Factors" of the Company's Annual Report for the year ended December 31, 1998 on Form 10-K. Product and service names used within are trademarks, registered trademarks and service marks of their respective owners.