New HyperSpace(R) Software Release Increases Data Acceleration for Higher Bandwidth Connections HyperTunnel(TM) 3.6 Uses New HyperTCP(TM) Technology to Achieve Increases in Network Throughput DENVER, Dec. 13 /PRNewswire-FirstCall/ -- HyperSpace(R) Communications, Inc. (AMEX:HCO), a leading provider of application acceleration software, today released HyperTunnel(TM) 3.6, the first version of HyperTunnel(TM) to incorporate the Company's advanced HyperTCP(TM) technology. HyperTCP increases throughput over high-speed networks and is expected to have broad appeal among users of high bandwidth networks including DSL, T1 and above. According to a recent study by Ashton, Metzler and Associates, "the amount of traffic transiting an enterprise WAN has historically increased at about 30 percent per year, and several business and technology factors are accelerating the use of wide area networking at an even faster rate." "HyperTunnel 3.6 opens up new options for businesses looking for ways to accelerate their networks, increase performance and reduce costs," said Mark Endry, president and CEO of HyperSpace Communications. "With our new HyperTCP technology, featured in HyperTunnel 3.6, companies can overcome the well-known limitations of the TCP/IP protocol when used on high-speed networks." Endry said many acceleration solutions work well with lower-speed applications but lose their effectiveness with high bandwidth applications due to well-known inefficiencies with the TCP protocol. The new HyperTCP-powered version of HyperTunnel 3.6 overcomes these limitations and therefore is ideally suited for enterprises that are sensitive to the costs of adding additional T1 lines to manage their increasing data transmission needs. "Cost-conscious enterprises can delay and even avoid adding additional lines by increasing the efficiency and throughput of their existing networks," said Endry. HyperTunnel 3.6 also now supports the HyperTunnel Gateway product on Windows platforms in addition to the already supported Linux and Unix platforms. Because the Windows Server operating system is not required, any computer running Windows XP, Windows 2000, or Windows 2003 can run HyperTunnel Gateway. Prior to the introduction of HyperTunnel 3.6, businesses were required to add Linux or Unix equipment to their networks in order to take advantage of the HyperTunnel solution. About HyperSpace Communications, Inc. HyperSpace software supports anywhere, anytime access to business-critical data worldwide, with real-time, secure application acceleration over existing networks. Hyperspace offers accelerated access right to the desktop. Customers include ABN AMRO, Deutsche Bank, Bridgestone-Firestone Europe, UBS PaineWebber, Dex Media, Hunter Douglas, Nokia, Telecom Italia, and Amway along with many others. For more information, visit HyperSpace online at http://www.ehyperspace.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. 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. 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: HyperSpace Communications, Inc. CONTACT: Karen Cryderman, APR, of BA&T, +1-720-838-4036, , for HyperSpace Communications, Inc.; or John Yeros, Chairman, +1-303-566-6510, or Investor Relations, Barbara Coy, +1-303-566-6532, , both of HyperSpace Communications, Inc. Web site: http://www.ehyperspace.com/

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