Telmex selects Tut solutions to light up the Mexican hospitality market

Tut Systems Inc., a leading provider of multi-service broadband systems for multi-tenant residential and commercial buildings (MTUs), today announced that Teléfonos de México, S.A. de C.V., (Telmex), will deploy Tut's family of broadband solutions in hotels across Mexico. Telmex is the largest telecommunications company in Mexico and has plans to continue to expand it broadband service offerings in guest rooms and conferences rooms throughout Mexico.

Based in Mexico City, with a presence in the United States, Guatemala, Puerto Rico and Brazil, Telmex selected Tut's Expresso products with LongRun technology and its Expresso SMS subscriber management technology to enable cost-effective, plug-and-play, broadband data and Internet services. Because Tut's equipment allows data to run over a hotel's existing copper infrastructure without disrupting regular voice services, Tut's solutions do not tie up valuable phone lines utilized for voice calls on the PBX system. One of Telmex's first Tut equipment deployments was in Mexico City's Hotel Nikko, one of the country's premier business traveler hotels. Telmex plans to continue to deploy and expand its broadband services in hotels catering to business travelers all across Mexico.

"This exciting new deal with Telmex highlights the growing interest among the world's leading telecommunications carriers for broadband services enabled by our product line," said Sal D'Auria, President and Chief Executive Officer of Tut Systems. "We are proud to be selected by Latin America's leading carrier to help them meet the growing demand for broadband services across Mexico."

"Tut's Expresso family of products was selected by Telmex because they were designed from the ground-up for multi-tenant environments to be deployed quickly and easily by service providers and carriers," commented Enrique Sanchez, Chief Information Officer of CAPSA, Tut's representative company in Mexico. "And, because the systems use a building's existing wiring, and offer the best price/performance ratio on their market, carriers such as Telmex can see a very fast return on the network investment. We look forward to working with Tut as part of Telmex's ongoing rollout strategy."

Tut's complete line of Expresso MDU products offers service providers an array of broadband services for multi-tenant environments. Tut's solutions can deploy integrated communication services to virtually every type of MTU building -- apartments, student housing, hotels, and commercial properties, both centrally wired and non-centrally wired. These products lower the cost of ownership for both service providers and business owners by using the wiring infrastructure already in place. Moreover, through remote management and self-provisioning capabilities, Tut products reduce the need for on-site MIS managers and costly service provider truck rolls.

About Telmex
Telmex is a world-class telecommunications company that provides total telecommunications solutions to its clients: Local and long distance wire service, wireless communications, multimedia network for video, audio and data, network engineering, digital wireless network access, and Internet.

Based in Mexico City, Telmex is currently positioned as the regional market leader in Telecommunications, with a presence in Mexico, The United States, Guatemala, Puerto Rico, and Brazil.

Formerly owned by the Mexican Government, Telmex was privatized in 1990. With the participation of Carso Global Telecom, France Telecom and Southwestern Bell, Telmex is positioned to remain at the forefront of telecommunications in the Americas.

About Tut Systems, Inc.
Tut Systems, Inc. (TUTS) develops equipment for delivering broadband services within multi-tenant unit properties (MTUs) such as hotels, apartments, student housing and multi-tenant commercial buildings. In partnership with service providers and real estate investment trusts, Tut has deployed its systems in hotel, commercial and residential properties worldwide. Tut's products transport broadband services such as advanced data, Internet access, high-quality voice and video simultaneously to MTU tenants via the existing copper wiring in buildings, or via new copper or fiber networks.

Tut's Service-Centric Networking initiative enables providers to create and control an unlimited array of broadband services in multi-tenant properties, which in turn allows them to maximize return on their network investments. The new IntelliPOP MTU™ service platform with first commercial shipment expected later this year, incorporates Tut's core technology, the Signature Switch, integrates multiple components of a network into one access concentrator, simplifying the management, provisioning and installation process.

More information on Tut and its products, including international availability, can be found at http://www.tutsystems.com, or by contacting Tut's US headquarters in Pleasanton, California, at +1-925-460-3900 or 800-998-4888. Investor queries should be directed to 800-486-1241.

NOTE TO EDITORS: For more information (including pictures in electronic or slide form) or to arrange interviews or product reviews, please contact Sterling Communications at: (408) 441-4100.

Tut, the Tut logo, Expresso MDU, HomeRun and Fast Copper are trademarks of Tut Systems, Inc. All other products or company names mentioned are used for identification purposes only, and may be trademarks of their respective owners.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 for Tut Systems, Inc.:
Various matters set forth in this press release, such as statements relating to the growth of the market for Tut's products and the launch of the IntelliPOP product, are forward-looking statements. These statements are subject to risks and uncertainties, including without limitation, market conditions which are beyond Tut's ability to control. The launch of the IntelliPOP product may be delayed for various reasons, including software bugs, delays in product hardware and software testing, delays in a production build of the product. Other factors include the Company's ability to obtain product components and the ability to successfully market and sell this product. Factors affecting both the growth of the market for Tut's products and the launch of the IntelliPOP product include the price/performance requirements of customers, the size and potential growth of the MTU market, the introduction of alternative technological solutions, delay in product shipments, and other risks detailed from time-to-time in Tut Systems' SEC filings and reports.

SOURCE: Tut Systems, Inc.