TOKYO June 29, 2004 Tokyo Electron Limited (TEL) announced Tuesday that it has concluded a distribution agreement with Meru Networks, Inc. (Head Office: Sunnyvale, California, U.S.A.; President & CEO: Ujjal Kohli), under which TEL will sell Meru's innovative WLAN products in Japan.

The greatest feature of solutions provided by Meru's products is the ability to easily construct multiple virtual access points (APs) on existing Layer 2/Layer 3 networks, by using Meru System Director (embedded software), which runs on Meru Access Point (virtual AP) and Meru Controller. The products also allow detailed Quality of Service (QoS) to be set on a virtual AP basis, making it possible to provide the optimum environment as application infrastructures for mobile IP telephones, involving mixed voice and data. Meru's products will eliminate the complicated, special task of determining where to install APs and managing APs, which has been a barrier to the construction of WLANs, thus enabling a major improvement in Total Cost of Ownership (TCO) for the aspects of personnel and operations as well.

It is expected that Meru's products will be sold to companies planning to introduce WLANs as their enterprise networks. Plans call for shipments to start on June 29, 2004 (shipments in the U.S. began in October 2003). In addition to standard sendback maintenance, onsite maintenance and 24x7 maintenance are available from TEL's hardware support menu.

TEL has been engaged in the sales and support of networks and security-related products. The company plans to incorporate WLAN, which is expected to have a market scale of nearly 30 billion yen in 2006*, into its enterprise network solutions, in order to sell them actively.

* Source: Survey by Fuji Chimera Research Institute

Features of WLAN Solutions from Meru

	Architecture enabling simple installation
-	No need for planning related to same-channel interference thanks to planning with the minimum radio frequency (RF)
-	Constructing virtual APs on existing Layer 2/Layer 3 networks
	Function enabling integration of voice and data
-	Supporting SIP and H.323
-	Delivering over-the-air QoS
-	Zero loss handoffs
	Function enabling solid security
-	802.1X, WPA, etc.
	Enhanced management function
-	Management based on Web or CLI
-	Automatic or manual configuration

Product Lineup and Pricing

	Meru Access Point 100 whose sales price is 90,000 yen Access point with higher performance and QoS than the existing 802.11AP model through a unique function employing patent-pending Air Traffic Control technology
	Meru Controller 1100 whose sales price is 2,100,000 yen High-performance WLAN gateway that connects to existing LAN switches and enables integrated management of Meru Access Point.
	Meru VPN Module whose sales price is 440,000 yen Hardware VPN module to be mounted in the Meru Controller 1100, which can be used without installing software for wireless clients in advance.

About Meru Networks, Inc. http://www.merunetworks.com

Meru Networks designs and develops standards-compliant 802.11 Wireless LAN Systems for large-scale data, voice and real-time applications. Meru's products include coordinated Access Points (APs) and Controllers that manage multiple APs. The Meru solution, deployed in Fortune 500 companies, universities, and healthcare organizations, provides over-the-air Quality of Service, predictable performance, and roaming with seamless handoffs. Meru's Wireless LAN System greatly simplifies RF planning associated with large-scale WLAN deployment and provides the industry's most comprehensive WLAN security from location to application, with continuous monitoring. Meru also provides a comprehensive set of network management tools to minimize ongoing operational costs. Meru, founded in 2002, is based in Sunnyvale, California.