San Francisco (February 4, 1998) - The Walden International ("WI") is pleased to announce the successful initial public offering of one of its portfolio companies, ZyXEL Communication Corporation ("ZyXEL"). ZyXEL was founded in August 1989 and specializes in remote data transmission with major products comprised of modems, routers, and bridges. With its own proprietary ASIC technology, ZyXEL's products are highly competitive in terms of performance, cost and time to market. ZyXEL is Taiwan's only, and one of the few modem manufacturers in the world that has its own modem engine chip technology. In 1995, when ZyXEL introduced its new fax/modem/voice/ISDN four-in-one product to market, the product immediately won "The Best Product" award in the 1995 October issue of PC Computing and "The Best Communication Product" at the Hanover CEBIT show in the same year. ZyXEL is currently capitalized at NT$992.603 million with 99.26 million shares outstanding.

For the year ended December 31, 1997, ZyXEL achieved a net profit before tax of NT$221.36 million on turnover of NT$1.583 billion. The revenues and net profits for the year recorded a 9% and 15% growth over that of 1996.

The shares of ZyXEL began trading on February 4, 1998 on the Over-the-Counter Securities Exchange of Taiwan. A total of 5 million shares were offered at a price of NT$50.15 per share, raising approximately NT$250.75 million (US$7.485 million) for the company. Core Pacific Securities Co., Ltd underwrote the offering.

Established in 1987, WI is an international venture capital firm with over US$800 million in funds under management. WI's international network of investment professionals are located in the United States, Taiwan, Singapore, Hong Kong, Malaysia, the People's Republic of China, the Philippines, Indonesia, India, Australia, and Thailand.