Internet Marketing

XDIGI Rolls out Fully Managed Wi-Fi Service Based on Sputnik Hardware and Software

''No-Hassle'' Wireless Internet Access Changes Profit Equation for Hotels and Offices

SAN FRANCISCO--(BUSINESS WIRE)--May 17, 2004--Extreme Digital Network, Inc. (XDIGI), a national Internet service provider based in the Dallas area, today announced the first fully managed wireless Internet access service designed for hotels, offices, and retail locations that want to offer free Wi-Fi hotspots for their customers. XDIGI's Wi-Fi service is based on network hardware and software provided by San Francisco Wi-Fi innovator Sputnik.
"With XDIGI pricing as low as a few dollars a day, businesses can increase sales revenue by offering free wireless access to customers," said Joel Shapiro, XDIGI CEO. "Wi-Fi access increases customer traffic and customer purchases, making this a very profitable amenity. Our customers will make money offering wireless Internet access without charging end users."

First deployment of the XDIGI service is at the Holiday Inn at Solana Beach, CA. The 80-room hotel will offer all guests complimentary high-speed Internet access. "Travelers increasingly select hotels based on Internet access," said Andrew Cohen, vice president of the telemanagement division at Atel, which represents XDIGI in the San Diego area. "A few extra room nights a month pays for the XDIGI service, which will also build repeat traffic. The best part is with this system the hotel doesn't need a telecom expert on hand to help customers get online or to keep the network running."

The XDIGI service, based on Sputnik's award-winning wireless network management software, allows businesses without on-location technical expertise to operate a wireless hotspot for their customers. Installation of the small XDIGI hardware unit involves plugging into power and connecting the Internet cable into a cable modem, satellite modem, or DSL modem. No added set up or software installation is required. XDIGI offers configurations for different size locations, including both indoor and outdoor venues. XDIGI offers onsite installation service, as well.

Each XDIGI hotspot location gets a custom welcome page that end customers see when they access the Internet. Customers have high-speed Internet connectivity for Web access or to collect email in both indoor and outdoor venues.

Sputnik's wireless network management software enables hotspot providers such as XDIGI to provision networks remotely, authenticate and track end users, and manage all its networks from a central location. Sputnik supports free access, subscription access, and access using pre-paid cards.

"By offering a fully managed hotspot service, XDIGI is building the wireless Internet access market in a creative way. XDIGI customers will increase their profitability by offering free Wi-Fi," said Vesna Swartz, Sputnik vice president marketing and sales. "Only Sputnik Wi-Fi products keep capital and operating costs low so that hotspot providers can build and manage their wireless networks profitably."

About XDIGI (www.xdigi.net)

XDIGI was founded in 2001 by telecom veteran Joel Shapiro with the guiding vision of providing low-cost broadband Internet access to the largest number of people possible. By creating a "no hassle" managed wireless service that increases traffic and customer hold time and by increasing revenues from these new customers, XDIGI brings the cost of providing wireless service within the reach of even the smallest business locations.

Shapiro has successfully marketed Internet services at major telecom companies and at Internet Service Providers. He held senior posts at Broadwing Communications, Sprint, and MCI. Shapiro is a published author and has Internet-related patents pending.

About Sputnik (www.sputnik.com)

Sputnik Inc. provides secure, managed Wi-Fi network software and hardware for the hotspot provider market. Innovative Sputnik software provides enterprise-class network management for low-cost wireless access points. Sputnik launched its commercial products in November 2003 and has gained 200 customers, many of whom are piloting for major deployments in 2004. The privately funded company is based in San Francisco.

Contacts


XDIGI
Teresa Shahan, 972-985-3003
tlsha@xdigi.net
or
Sputnik
Leslie Schroeder, 415-999-1394
lschroeder@sputnik.com

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