December 9, 2003

News Release: Vyyo Increases Penetration in China with Shanghai Deployment by China Mobile

Vyyo Inc. (Nasdaq: VYYO), a global supplier of wireless broadband end-to-end solutions for wireless telephony and high-speed data connections, today announced that Shanghai Mobile Communications Co., a subsidiary of China Mobile, has selected Vyyo for the deployment of its broadband wireless access (BWA) solutions in Shanghai. Vyyo's system integrator and original equipment manufacturer (OEM) Shanghai Datang Mobile Communications Equipment Co., Ltd. secured the deal. Our mission is to capture the wireless solutions opportunity in China by systemically building relationships with Chinese telecommunications operators and system integrators,'said Michael Corwin, president and chief operation officer of Vyyo. 'These relationships prove our ability to execute on plan. As you can see, our relationship with Shanghai Datang Mobile Communications Equipment has successfully led to our contract with China Mobile.'

Shanghai is one of the largest cities in China with a population of 13 million. China Mobile is the largest global system for mobile communication (GSM) operator in the world. For the Shanghai deployment, China Mobile intends to use Vyyo products to meet its cellular GSM backhaul and Wi-Fi hotspot backhaul, as well as business class services.

Mr. Sun Yuwong, general manager of Shanghai Datang Mobile Communications Equipment, stated, 'We are delighted to have developed a relationship with Vyyo. We believe Vyyo's point-to-multipoint architecture combined with its dual-bus wireless hub, which enables both high-speed data and legacy voice lines, provides effective solutions in Chinese communities that lack wireline infrastructure. We are working closely with China Mobile on the successful deployment of Vyyo's systems. We anticipate continuing to roll out Vyyo deployments in additional cities as licenses become available.'

About China Mobile.

China Mobile is the group name for Shanghai Mobile Communications Co., Ltd. (hereinafter SMCC), a wholly-owned subsidiary of China Mobile (Hong Kong). SMCC mainly provides Gotone, the digital cellular service (IMSI numbers beginning with 135, 136, 137, 138 or 139), IP telephony, Internet access and related information services as well as the technical development and technical services in Shanghai. China Mobile is the only operator fully dedicated to mobile business in China. It has been playing a leading role in the development of the mobile communications industry in China and holds an important position in the international arena as well. After over ten years of efforts, China Mobile has established a comprehensive network with large coverage, high quality, rich variety of businesses and first-class customer services. It ranks first in the world in terms of network scale and customer base. By the end of 2002, most of the cites in China had been covered by China Mobile's network with seamless coverage on the backbone lines and indoor coverage in key urban areas. At the same time, the switching capacity for GSM mobile phones had reached 182 million and the total number of customers had exceeded 138 million. China Mobile has opened roaming services with over 200 mobile operators in 116 countries and regions in the world. Currently, China Mobile limited has the largest market capitalization among the overseas-listed Chinese companies.

About Shanghai Datang Mobile Communications Equipment

Shanghai Datang Mobile Communications Equipment Co., Ltd. (SDTM) is a subsidiary company of Datang Telecom Technology Industry Group, one of the largest telecom equipment providers in China. Located in Shanghai Cao He Jin Hi-tech Park, SDTM mainly focuses on R&D, production, sales, and service of mobile communications products. SDTM was established in April 1998. The company is operated on the modern enterprise mechanism basis and has passed authentication of ISO9001 quality system. Since its establishment, the company has been developing at a high speed. As a leading company in GSM field, SDTM lunched GSM 900/1800 BSS to market. It was the first time that domestic equipment was adopted in a Chinese public mobile network. At the same time, the Network Optimization Solutions provided by SDTM are widely used in improving the network of China Mobile and China Unicom, giving SDTM a predominant role in the market. In 2001, SDTM advanced to CDMA fields and acquired a large number of orders from China Unicom. Also, SDTM devotes itself to developing the TD-SCDMA released by Datang, which is one of the 3G standards established by ITU.

About Vyyo Inc.

Vyyo offers wireless broadband end-to-end solutions used by telecommunications providers to deliver both wireless telephony and high-speed data connections to business and residential subscribers. The technology uses point-to-multipoint architecture to deliver circuit switched (telephony), as well as voice and data over IP. The company sells systems directly to service providers and systems integrators worldwide. Vyyo has shipped over 340 base stations and over 30,000 modems, which are deployed in China, the U.S., Canada, Europe, Latin America, Southeast Asia and Africa. Vyyo is headquartered at 4015 Miranda Avenue, 1st Floor, Palo Alto, CA 94304-1218. More information on the company can be found at www.vyyo.com.

Safe Harbor Statement

This press release may contain forward-looking statements within the meaning of the 'safe harbor'provisions of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties. Actual events and results may differ materially from those projected in these forward-looking statements as a result of several factors, including but not limited to, the current limited visibility available in the telecommunications and broadband access equipment markets; whether Vyyo is successful in marketing and selling its wireless broadband access products, particularly in China and the Far East; challenges of doing business in China and the Far East, including regulatory, economic, political, health, financial and safety risks; the ability of the China Mobile group and Shanghai Datang Mobile Communications Equipment Co., Ltd. to successfully implement Vyyo systems; whether the Chinese government makes any additional spectrum license grants; economic conditions worldwide and the continued effects of the slow U.S. economy; and other risks set forth in Vyyo's annual report on Form 10-K for the year ended December 31, 2002, its quarterly report on Form 10-Q for the three months ended September 30, 2003, and in other periodic reports filed by Vyyo with the Securities and Exchange Commission from time to time. Vyyo assumes no duty to update these statements.

SOURCE Vyyo, Inc.

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