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Coactive Networks to Supply Internet-Based Home Gateways for up to 400,000 Customers; First Phase of Deliveries Valued at US$22 Million

Sensel AB, Formed by Swedish Electric Utility and Industry Leader Vattenfall, to Deliver Value Added Customer Services Based Upon Coactive Connector Product Family

SAUSALITO, Calif., October 25, 1999 -- Coactive Networks, the leader in connecting open control systems to Internet technologies, has been awarded a two-year contract with Swedish communications company Sensel AB as its sole supplier of a complete home gateway solution for delivering multiple telemetry services to its customers. Sensel AB is an unregulated communications company formed by Vattenfall AB, the largest electric utility in Sweden and a bellwether leader in the industry.

Valued at US$22 million, phase one of the two-year contract encompasses an aggressive roll-out across Sweden starting as early as November 1999. Deployment is planned for over 400,000 customers during the next two years.

Under the terms of the agreement, Coactive will supply Sensel with the highly scalable Coactive Connector® solution to deploy multiple telemetry services to residential customers, small and medium size businesses, and industrial customers across the Nordic countries.

"We are excited about the opportunity to work with Sensel in building this integrated e-solution network. The nature of this contract supports Coactive’s position as the premier supplier of connectivity to control systems," said David Gaw, president of Coactive Networks. "This agreement demonstrates our capability to provide cost-effective, scalable solutions for offering added-value e-services to commercial and residential customers."

"Sensel is very pleased to be working with Coactive on such a large project involving cutting-edge technology. We feel it is a validation, not only for our business plan, but also for the business case for offering added value e-services in the marketplace," stated Björn Häggquist, managing director of Sensel.

About the Coactive Connector Product Family

The Coactive Connector product family connects control systems, appliances, and other devices to Internet applications, enabling access from anywhere on a network and bringing a new level of sophistication to control data representation. The Coactive Connector incorporates the patent-pending distributed object technology of Coactive’s IOConnect Architecture™, providing the reliability, scalability, and manageability required for complex and mission-critical control systems. Adherence to open protocols provides broad access to control systems while leveraging existing data networking infrastructures.

About Coactive Networks

Coactive Networks is a leading provider of open solutions for connecting control systems to enterprise networks and the Internet. The company offers a full line of routers, thin servers, and gateways for creating powerful next-generation applications, and is the market leader in providing connectivity solutions for the EIA-709 (LONWORKS®) standard, the leading control technology. Coactive is a privately held corporation based in Sausalito, CA. Detailed information on Coactive products, news announcements, seminars, training, and support is available on the World Wide Web at http://www.coactive.com.

Coactive, the Coactive Logo, Coactive Connector, Router-LE, Router-LL, and IOConnect Architecture are trademarks or registered trademarks of Coactive Networks, Inc. in the US and other countries. LONWORKS is a trademark of Echelon Corporation registered in the United States and other countries. All other brands and names are the property of their respective owners.

Contact:

Sonia Gómez
415-289-1736
sgomez@coactive.com

Laura Wagner
650-856-4932
laura@hgpr.com