MEGAHERTZ ANNOUNCES PLANS TO BOLSTER HIGH-SPEED COMMUNICATIONS AND MOBILE
NETWORKING OFFERINGS

PCMCIA Modem Market Leader Announces PCMCIA ETHERNET-MODEM and V.34 Modem

SALT LAKE CITY, June 20, 1994 -- Megahertz Corporation (NASDAQ: MEGZ), the
worldwide market leader in mobile PCMCIA data/fax modems, today announced
plans to strengthen its position in the PCMCIA mobile communications
market with two new products: a combination PCMCIA Ethernet-Modem card and
the company's first modem based on the V.34 standard. With these new
products, Megahertz will further expand its line of mobile data
communications products which includes data/fax modems, direct connect
cellular modems, Ethernet adapters, and combination cards featuring both
Ethernet and modem capabilities.

"Mobile customers are becoming increasingly dependent on products for data
communications, whether they are connecting to the network locally or
remotely through phone lines," said Ryan Ashton, Megahertz' senior vice
president of sales and marketing. "With these new products, Megahertz is
meeting the changing needs of the mobile professional, providing
comprehensive, reliable, and easy-to-use mobile networking solutions."

Enhanced Mobile Networking Capabilities

The new Megahertz Ethernet-Modem will offer the same easy installation
procedures and broad compatibility that customers expect with Megahertz'
market-leading PCMCIA modems. "Our customers are not satisfied with the
existing Ethernet-Modem combination card on the market and they are
looking to Megahertz, as the leader in PCMCIA modems, to add reliable
networking technologies to our product line," said Ashton.

The card will connect mobile computer users to most popular network
operating systems, while offering the dual capability of a data/fax modem,
all in the convenient PCMCIA form factor. "This is particularly relevant
in that many portable computing devices have only one PCMCIA slot, so
customers can now use that slot much more efficiently," said Ashton.

The modem provides data communications throughput at a speed of 14.4Kbps,
while ethernet capabilities are offered in both 10BaseT and 10Base-2 cable
configurations. As with its modems, the Megahertz Ethernet-Modem will be
compatible with nearly every notebook and palmtop computer with a PCMCIA
communications slot. Additionally, Megahertz is conducting extensive
compatibility tests with leading Network Operating System (NOS) and modem
software providers.

This introduction strengthens Megahertz' network connectivity product line.
In March, the company introduced it's first PCMCIA Ethernet Adapter; now,
with the introduction of the Ethernet-Modem card, Megahertz is providing a
solution for mobile professionals who need both a modem and an Ethernet
adapter. The product will ship in early Fall of 1994; pricing will be
announced immediately prior to shipment.

V.34 Doubles Throughput

Megahertz' new V.34 modem is also scheduled to ship in early Fall, 1994,
after ratification of the standard by the International Telecommunications
Union, Study Group 14. The Megahertz product will provide communications
throughput at 28.8Kbps -- twice that of the current V.32bis standard --
and incorporate Megahertz' patented XJACK connector. The increased
throughput of V.34 is expected to reduce connection times, and thus
telephone charges, when compared to 14.4Kbps modems; additionally, faster
and more reliable throughput will make it possible for users to transmit
data to and from a greater variety of software applications than in the
past. Remote control, Windows, interactive media and other applications
become more practical with the higher speed.

While some companies have been offering customers proprietary solutions
that provide faster speeds than the current V.32bis standard, Ashton is
advising customers to wait for Megahertz' fully compatible V.34 modem.

"While some users want faster throughput now, they won't be satisfied with
non-standard solutions that exacerbate compatibility issues and create
additional costs," said Ashton. "They will simply have to pay again to
upgrade or buy a new product when the standard is introduced."

According to research conducted by International Data Corporation, more
than half of modem users said they wound not purchase a proprietary
solution for fear of compatibility problems. The new Megahertz modem,
manufactured with the AT&T chipset, will meet the V.34 standard as it
stands today. Additionally, the AT&T chipset has a flash upgrade
capability, allowing customers to upgrade their modems remotely, rather
than having to send the product back to the vendor for revisions.

In addition to the increased data communications speed, V.34 is the first
protocol that allows the modem to identify itself to the telephone network
equipment. It will then adapt to the characteristics of the connection by
probing the channel, setting critical parameters such as carrier
frequency, equalizations, symbol rate and transmitted power in order to
maximize the data throughput. Current offerings have set parameters that
do not adapt to individual lines, which makes them more susceptible than
V.34 to noise and other interference.

Customer Support

Megahertz' new PCMCIA Ethernet-Modem and PCMCIA V.34 cards come with a
five-year warranty. For sales information or technical support, customers
can contact Megahertz at 1-800-LAPTOPS.

Megahertz is a leading provider of communications solutions for mobile
computers. Megahertz manufacturers PCMCIA Ethernet adapters, PCMCIA
data/fax modems, PCMCIA cellular data/fax modems for selected cellular
phones, internal data/fax modems for the proprietary slots of Compaq
notebook computers, and external "pocket' modems.

Megahertz Corp
605 North 5600 West
PO Box 16020
Salt Lake City, UT 84116-0020
801-320-7000

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