SOURCE: Perfisans Networks Corp.

May 11, 2006 16:05 ET

Perfisans Networks Announces Development of New Wireless Security Product for Wireless Broadband Communications

WiMax and Wireless Service Providers May Get the Security They Need to Compete With Traditional 3G Networks

LOS ANGELES, CA -- (MARKET WIRE) -- May 11, 2006 -- Perfisans Networks Corp. (OTC BB: PFNH), a next-generation fabless semiconductor company focused on the burgeoning Gigabit Ethernet market, announced today the development of a new Network Security product for the rapidly growing high speed broadband wireless networks market.

After its recent LOI merger announcement with FSP Holdings Limited (FSP) [www.fsp.com.cn], a VoIP and Wireless Broadband Access (WBA) solutions provider focusing on the China WiMax and Wi-Fi networks, PFNH immediately began extensive market research, which indicated extremely strong market demand for a cost efficient "wireless security" product. Currently security related products in this sector are very expensive to implement and thus restrict barriers of entry into the WBA market by most companies. PFNH and FSP has formed a team to utilize PFNH's unique chip architecture already in place to develop and market a low cost product for the wireless communication and network security markets.

Today's Broadband Access industry is dominated by Cable and DSL technology. The deployment is costly and performance is limited by the physical distance between the user and the provider. WBA is the newest approach that has the lowest barrier of entry for ISP's and the lowest implementation cost. Most of today's notebook computers already come with Wi-Fi (802.11x) support. One of the biggest hurdles for Wireless ISP (WISP) is to protect customer's data from the shared wireless networks.

In addition, the research has found that the most vulnerable data is that data at rest (i.e. data on the hard disk). Dynamic data under transportation is seldom hacked and difficult to be captured and decoded.

With market data from the FSP's distribution channel and PFNH's expertise in the storage and network arena, PFNH's first step to this market will be to build a Security Processor, which combines wireless protocol and security encoding in one chip. PFNH's road map will integrate the storage protocol with its Systems On Chip modular design methodology, proving how easily adaptable the Company's technology is to producing new and exciting products at relatively low costs that is "light years" faster than any competitor in getting those products to market.

Wireless Broadband Access (WBA) and VoIP markets are growing rapidly worldwide and as such, data security is already one of the major concerns in deploying WBA and VoIP services. Today, only the most expensive WBA products are implemented with hardware data security features; most other WBA products only offer software data security features that significantly lower system performance outputs and increases product costs. PFNH's first step to enter this market will be by integrating a wireless broadband communication and data security functionality into their new product line for this emerging market. This will be a single chip semiconductor ASIC (Application Specific Integrated Circuit) containing Wi-Fi, WiMax, 3DES, and IPSec capabilities. With this powerful arsenal of functionality, PFNH's new Wireless Security (WiSec) products will deliver high data throughput performance with exceptional high security, thereby alleviating security concerns.

High performance and high efficiency components are critical for large-scale and application-specific WBA and VoIP deployment. Today WBA and VoIP equipment manufacturers only have available to them very expensive semiconductor ASIC components to build their products. PFNH will play an important role to change this and to provide high performance ASIC components at a very low cost in this fast-growing WBA and VoIP market, as well as to satisfy customer needs in the Telecommunications and VoIP sectors.

Target markets for the new wireless security products will be WBA and VoIP equipment and solution providers such as Cisco, Redline Communications, Huawei (China's largest network equipment provider), ZTE, UTStarcom and FSP. This new product line will be tailored for both long range wireless broadband access (WiMax-802.16) and short range wireless broadband access (WiFi-802.11), VoIP (Voice over Internet Protocol), video and internet access. Products under development will conform to both International and China standards. The ability to adapt, make changes, and put out new products so quickly is a testament to PFNH's unique "scalable" architecture.

According to the research report published by WinterGreen Research Inc. in November 2005, the worldwide WiMAX switch market forecasts at $34.5 million dollars in 2005 and anticipated to reach $19.9 billion by 2011. Normally, more than 20% of switch costs are in Semiconductor ASIC components. This estimation gives PFNH a Total Available Market (TAM) of around $4B by 2011, which is a significant market size for PFNH to focus future development. The report also indicates WiMAX is an opportunity for Wireless Internet Service Provider (WISP) operators to take broadband access and VoIP market share away from proprietary wireless operators or those using wire-line technologies. Significant opportunities are presented by the mobile version of WiMAX 802.16e. It has been indicated that WiMAX networks will be able to support revenue-generating multimedia services better than existing 3G networks. This new technology enables operators to provide more services at lower costs in order to compete with the traditional mobile operators using GSM, CDMA and 3G networks.

ABOUT PERFISANS HOLDINGS INC.

Founded in 2001, Perfisans Holdings, Inc. is an emerging fabless semiconductor company focused on developing leading edge, cost-effective, system-on-chip (SOC) integrated circuits (IC), and delivering innovative solutions that address the performance needs of next generation network systems. Rapidly being recognized by industry leaders for its innovative network interface products, the Company's technologies have applications in telecommunication, data communication, storage networks, content delivery networks, broadband networks, and rich streaming media.

Perfisans' proprietary chip technology is fully standards-compliant, and provides high efficiency, high-quality network connections for both business and home applications. The Perfisans' ENA1001 efficiently processes the TCP/IP protocol stack, and at speeds10 times faster than typical 10/100M-bit networks, thereby significantly improving the efficiency of the network. More information can be obtained from the Company's web site at www.perfisans.com.

Cautionary Statement

This press release contains statements relating to future results of Perfisans (including certain projections and business trends) that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected as a result of certain risks and uncertainties. These risks and uncertainties include, but are not limited to: the cyclical nature of the semiconductor industry and the markets addressed by the company's and its customers' products; demand for and market acceptance of new and existing products; successful development of new products; the timing of new product introductions; changes in product mix; product obsolescence; the availability of manufacturing capacity; fluctuations in manufacturing yields; pricing pressures and other competitive factors; the ability to develop and implement new technologies and to obtain protection for the related intellectual property; the uncertainties of litigation; our ability to attract and retain qualified personnel; as well as other risks and uncertainties, including those detailed from time to time in Perfisans' Securities and Exchange Commission filings. These forward-looking statements are made only as of the date hereof, and the company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

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