NEW YORK, Oct. 7, 2002 — Ambient Corp., a provider of power line communications (PLC) technology, and Consolidated Edison Inc. announced that Consolidated Edison has undertaken a significant financial investment in Ambient Corporation’s Power Line Communications technology.
Under the terms of the agreement, Consolidated Edison has committed to invest $1.4 million in Ambient Corporation over the next five months. This amount will represent approximately 50% of Ambient Corp. current issued and outstanding common stock. The proceeds of the investment will allow Ambient Corp. to continue to test, demonstrate, design and commercialize its proprietary and patented Power Line Communications technology.
Consolidated Edison and Ambient Corporation had previously announced a development agreement to jointly design, develop and test the feasibility of Ambient’s high-speed Power Line Communications technology. In recent months Ambient Corp. has successfully tested and demonstrated its Power Line Communications architecture on Con Edison’s overhead electric distribution system.
Ambient’s proprietary coupler and network components are deployed on Con Edison’s medium voltage and low voltage lines to construct a complete, end-to-end network in a live environment. These tests achieved throughput rates from 10 to 16 Mega-bits per second (Mbps) over the medium voltage lines. Throughput rates on the low voltage lines, the rates that could be provided to consumer premises, range from 3.5 Mbps to 7 Mbps.
On September 19, 2002 Ambient Corp. announced that it had been awarded a United States patent for its inductive coupler and related features. The patent covers the coupling of data signals to a power transmission cable. These newly patented couplers are designed to overcome traditional obstacles to the utilization of existing electrical distribution systems for the transmission of high-speed data communications.
Joan S. Freilich, Executive Vice President and Chief Financial Officer of Consolidated Edison, Inc. stated, “Con Edison’s financial investment in Ambient Corporation is the logical result of our successful joint development and testing of Ambient’s Power Line Communications technology. We at Con Edison have been and will continue to be in the forefront of exploring, developing, and utilizing the advances of technology for the benefit of our customers.”
John Joyce, CEO of Ambient Corp. stated, “We at Ambient Corp. are most gratified that our long time development partner is now our financial partner as well. Con Edison’s investment further solidifies the relationship between our two companies, a relationship that goes back to Ambient’s early PLC endeavors. But, this investment is far more than a symbolic gesture. After months of highly successful testing on power lines in a real live environment, combined with the awarding of a patent for our inductive coupling technology, this infusion of capital gives us the vital financial resources that brings us that much closer to full commercialization.”
Brett Kilbourne, Associate Counsel to United Telecom Council stated, “This agreement is of course good news for both Ambient Corp. and Con Edison. But it is also a significant major milestone for the Power Line Communications industry itself, an industry that we at UTC have sincerely believed in and energetically represented for several years. Our congratulations to both parties.”
About Ambient Corporation:
Ambient Corp. is a publicly traded company incorporated in the United States that focuses on Power Line Communication telephony-related product offerings, Internet and E-Commerce for a variety of exciting new consumer applications, and a basket of utility related services. www.ambientcorp.com
About Consolidated Edison, Inc.
Consolidated Edison Inc. is one of the nation’s largest investor-owned energy companies, with approximately $10 billion in annual revenues and $17 billion in assets. The company provides a wide range of energy-related products and services to its customers through two regulated utility subsidiaries and four competitive energy and telecommunications businesses. For additional financial, operations and customer service information, visit the Consolidated Edison, Inc. Web site at www.coned.com.