Dulles, VA. June 21, 2004 – Encore Networks, a developer of Virtual Private Network (VPN) security solutions, recently signed a national reseller and services agreement with Telsource Corporation, a leading network integrator and managed network care provider. Telsource will sell, install and service Encore’s BANDIT™ family of broadband IP+Legacy VPN routers and also provide on-site maintenance support for certain Encore carrier and large enterprise customers. In addition to the BANDIT™ product line, Telsource sells a wide range of products from networking vendors including Adtran, Cisco, Lucent, Mitel, and Nortel Networks.

Established in 1984, Telsource has become one of the nation’s leading network integrators and field service engineering organizations. Headquartered in Fairfield, New Jersey, Telsource provides installation, maintenance, and managed network services for voice, data, and video networking for carriers including Verizon, AT&T, MCI, and BellSouth. Telsource also builds and supports enterprise networks in a variety of industries including financial, insurance, retail, hospitality, utility, and manufacturing.

“With spare parts depots located strategically throughout the country, Telsource has built a field engineering force that offers fast, reliable on-site services which will maximize our customers data network applications,” stated Peter Madsen, Encore Networks President and CEO. “Their guaranteed maintenance response times and 7/24 Network Operating Center, will allow us to target larger network opportunities with our BANDIT™ line of IP+Legacy VPN gateways.”

“We look forward to supporting Encore’s customers, both carrier and enterprise, who have complex VPN networks with secure, encrypted communications using the Internet or other packet based technology such as Frame Relay, DSL, Satellite, or Cellular Wireless,” said Vincent Sciarra, President and CEO of Telsource. “Also, by adding Encore’s BANDIT™ products to our own product portfolio, we’ve expanded our service offerings that help customers meet their data network goals.”

Designed for IP-based, next generation, multi-service broadband networks, Encore’s BANDIT™ products are small, but powerful VPN tools that provide router/FRAD, firewall and IPsec VPN functionality, dial backup, Ethernet, and legacy protocol support on one platform. Both service providers and enterprise customers deploy BANDITs for more cost-effective solutions for IP+Legacy VPN, security, and data over a single broadband connection.