XETA Technologies is currently recognized as the leader in hospitality call accounting software, boasting a 25% share of the 125-room-and-above market. XETA is also the leading national supplier of Lucent and Hitachi PBX systems. Darwin Networks is a recognized, national leader in providing high-speed Internet access and network services to the hospitality market. The XETA/Darwin offering will include XETA�s Linux-based Virtual XL call accounting system integrated with Darwin�s Linux-based high- speed DSL Internet access system.

Darwin Networks� true high-speed DSL (Digital Subscriber Line) Internet access technology was developed by Elastic Networks, a leader in the booming DSL technology field. The combination of XETA Technologies, Darwin Networks and Elastic Networks provides a combined, high-profile brand identity and customer features set not found elsewhere in the industry.

In March, XETA will begin serving as a sales agent for Darwin Networks. XETA will offer a packaged system that will allow hotel owners to begin offering the high-speed Internet access being demanded by today�s travelers.  Moreover, it will also bring hoteliers additional revenues from e-commerce fees, meeting room DSL bandwidth usage and guest room access fees. Hoteliers will also recognize revenues through the use of XETA�s call accounting software, which frequently increases property revenue per available room (RevPAR) by 30-50%.  Finally, hoteliers will benefit from a revenue-sharing agreement based on Internet usage. 

The Elastic Networks technology offered by Darwin Networks allows hotel guests to access the Internet at speeds up to 50 times faster than on a 28.8K dial-up modem. Through a simple plug and play connection in each hotel room, guests can use their laptops to tap into the Internet, while simultaneously using the same telephone line for voice conversations.

The partnership with XETA Technologies, a reputable leader in the lodging industry, solidifies Darwin Networks� position in the hospitality market. �This market is eager for high-speed Internet access in guest and meeting rooms, as well as e-commerce web sites for the properties themselves,� said David Wigglesworth, president of Darwin Networks� Hospitality Division. �XETA is a well-known and highly respected telecommunications supplier to the lodging industry. Partnering with XETA to offer such an excellent solution is a very important step for Darwin Networks towards our goal of being a leader in this industry.� High-speed Internet access is a logical offering for XETA. �Our lodging customers were demanding the ability to offer this service to their guests. We believe it�s also a natural fit with our popular Linux-based call accounting software,� said Don Reigel, president of XETA Technologies� Lodging Division. �Darwin is our best option as a partner�they offer cutting-edge DSL technology from Elastic Networks and they have strong financial backing from investors such as Paul Allen�s Vulcan Ventures.�

Elastic Network�s core suite of high-speed copper access solutions are based on EtherLoop burst-mode DSL technology, which provides multi-megabit access over regular copper phone lines up to 21,000 feet. Elastic Networks portfolio also includes the YesWare software suite, which provides integrated services management including plug and play connectivity � without end user laptop reconfiguration � as well as billing, service branding, and system management for both EtherLoop and Ethernet networks.  To see a flowchart of the high-speed Internet access offering in hotels, please visit the XETA website at www.xeta.com.

About Darwin Networks
Darwin Networks provides high speed data communications solutions and Internet access to small and medium-sized businesses, office buildings, apartment complexes, hotels and telephone companies, using wireless and Digital Subscriber Line (DSL) technologies.  The company offers a full complement of marketing and support services, including training, to assist business owners, property managers and their staffs in marketing and implementing the new services.  Darwin Networks has corporate offices in Louisville, KY; San Diego, CA; and Seattle, WA; and Walnut Creek, CA.  The company has agreements in place and in progress to launch services in more than 400 locations in over 20 states. Darwin Networks� investors include Broadband Solutions, LLC (led by Chrysalis Ventures, LLC), Paul Allen�s Vulcan Ventures, Richland Ventures, River Cities Capital and associates of Moore Capital.  For more information about Darwin Networks, please visit www.darwin.net.

About XETA Technologies
Headquartered in Broken Arrow, Oklahoma, XETA Technologies is a premier voice and data integrator with 16 sales offices and 28 service centers.  Embarking on a strategy to be recognized as the leading provider of equipment and after-market service for both voice and data applications, XETA Technologies is continuing to build upon its success as the largest dealer of Lucent and Hitachi voice systems.  The Lodging Division of XETA Technologies is the leader in the sales and service of call accounting systems to the lodging industry, boasting about a 25% share of the market.  Further, this division is the leading re-seller of Hitachi and Lucent PBX systems in the market at 15% market share.  The Commercial Division of XETA Technologies, formerly St. Louis-based US Technologies, is the largest dealer of Lucent Technologies� systems and was recognized by Lucent as BusinessPartner of the Year in 1994, 1998 and 1999.

In 1999, XETA Technologies was selected by Forbes Magazine as one of the Best 200 Small Companies in America for the fourth time in five years. Business Week also selected XETA Technologies as one of its Top 100 Hot Growth Companies for 1999. XETA Technologies has generated six years of record financial results, with sales and EPS growing at five-year annual compound rates of 38% and 29%. 

Forward-looking statements contained herein are based upon current expectations, which XETA Technologies believes to be reasonable.