Press Release: March 3, 2000

WR Hambrecht + Co Reiterates Market Outperform Rating For Terayon (TERN), Increases Price Target To $300

Broadband supplier projected to more than double revenues in 2000

SAN FRANCISCO CA, March 3, 2000—WR Hambrecht + Co, the online investment bank, today increased its price target for Terayon (TERN) from $200 to $300. eNetwork Infrastructure analyst Tim Savageaux cited Terayon’s continued financial momentum and attractive relative valuation as reasons for the increased price target .

"We believe Terayon continues to demonstrate a strong current pace of business, and its transition from pure play cable modem supplier to integrated broadband access systems vendor is likely to significantly broaden its market presence," Savageaux said. "We believe market concerns about the company’s cable modem standards process and its relationship with Rogers Communications is overdone. We believe this presents a buying opportunity for investors."

Savageaux projects Terayon’s total revenues to reach $229 million in 2000, up from $97 million in 1999.

Terayon Communication Systems develops, markets and sells cable modem systems that enable cable operators to cost-effectively deploy reliable two-way broadband access services.