HCO Hyperspace Comm

DirectCM Intends to Bring Economies of Scale and Supply Chain Management Benefits to PC System Builders NAMPA, Idaho, May 1 /PRNewswire/ -- MPC Computers, a wholly owned subsidiary of HyperSpace Communications, Inc. (AMEX:HCO), today announced that it has begun accepting orders for its new DirectCM PC distribution and contract manufacturing division. DirectCM will provide manufacturing and distribution services to PC system builders such as regional Original Equipment Manufacturers (OEMs), systems integrators and Value-Added Resellers (VARs). "Today's announcement presents an opportunity for system builders to improve their cost structures and operating models," said John P. Yeros, Chairman and CEO of HyperSpace Communications, Inc., parent company of MPC Computers. "DirectCM intends to lower costs for PCs and components through our volume purchasing power. In addition, we offer the opportunity for system builders to offload the complexities and costs of product development, product transitions, and supply chain management so that they can focus on their key value-adds in customization, services and consulting." DirectCM's first product, the DCM 1100i, is an ultra-small form factor desktop PC based on the new picoBTX industry-standard chassis design. The follow-on product, the DCM 2200i, is a notebook design that systems builders can easily customize and market under their own brand. Both products will be based on Intel processors and chipset technology. "We are very excited about DirectCM's introduction of this new and innovative product based on Intel Desktop Boards," said Tom Rampone, Vice President User-centered Platforms Solutions Division, Intel Corporation (NASDAQ:INTC). "These readily-customizable systems will help system builders to offer the latest Intel technologies at affordable price points. In particular, the new small form factor picoBTX-based desktop, the DCM1100i, will help system builders to participate in the fastest-growing segment of the desktop PC market." With its 340,000 sq ft manufacturing facility, DirectCM offers the capability to combine economies of scale with customized solutions. DirectCM intends to enable system builders to aggregate their purchasing power to better compete with the large multinational PC vendors, while still offering the one-off customization and flexibility that their customers demand. DirectCM offloads the cost and complexity of new product development by providing near-complete product solutions that require only final configuration and customization by the system builder. Alternately, the system builder can choose to have DirectCM perform complete build-to-order configuration and ship directly to the system builder's customer. This model enables the system builder to offer the latest technology without large up-front costs in product development, tooling and product management. DirectCM intends to lower the expenses and logistics associated with supply chain management by providing a buffer inventory of long-leadtime systems in its US-based hub. System builders can achieve quick time-to-market with the latest technologies, while DirectCM manages product transitions in the background. Additional information was released in a HyperSpace Communications, Inc. SEC 8-K filing dated February 14, 2006. More information is available at http://www.directcm.com/. About MPC Computers: MPC Computers provides enterprise IT hardware solutions to its target markets of mid-sized businesses, government agencies and education organizations. MPC offers standards-based server and storage products, along with PC products and computer peripherals, all of which are backed by an industry-leading level of service and support. Additionally, the company provides contract manufacturing and distribution services to partners in the PC industry. MPC, headquartered in Nampa, Idaho, is a wholly owned subsidiary of HyperSpace Communications, Inc. (AMEX:HCO). More information about the company can be found at http://www.mpccorp.com/. Cautionary Statement Certain statements in this press release are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements involve a number of risks, uncertainties and other factors that could cause actual results, performance or achievements of HyperSpace Communications to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. The DCM business will involve entering new markets, developing new product and service offerings, and pursuing new customers. There can be no assurance that the initiative will be successful, that significant demand for DCM's product and services offerings will materialize, or that the intended benefits will be achieved. Other factors, which could materially affect such forward-looking statements, can be found in HyperSpace Communications' filings with the Securities and Exchange Commission, including risk factors at http://www.sec.gov/. Investors, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are only made as of the date of this press release and HyperSpace Communications undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances. DATASOURCE: MPC Computers CONTACT: Elissa Reid, Director of Public Relations of MPC Computers, +1-208-893-3286, Web site: http://www.directcm.com/ Web site: http://www.mpccorp.com/

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