NX NETWORKS TO SEEK CHAPTER 11 PROTECTION

HERNDON, VA   (INTERNET WIRE)   11/01/2001   Nx Networks (Nasdaq: NXWX), a
provider of internet telephony solutions, said today that it has been
authorized by its board of directors to file a petition for protection under
Chapter 11 of the U.S. Bankruptcy Code in the U. S. Bankruptcy Court for the
Eastern District of Virginia. It is expected that the petition will be filed
by this afternoon.

"This action will allow Nx Networks to complete the restructuring of our
business, focusing on continuous service and support for our existing
customers and product lines," said John DuBois, Nx Networks' Chairman and CEO.
"Our customers will continue to receive a high level of service and support."

ABOUT NX NETWORKS

Nx Networks provides Internet telephony solutions, including toll bypass,
voice VPN, Internet access, and packet data solutions.

Headquartered in Herndon, Virginia, USA, Nx Networks provides solutions to
service providers, carriers, and enterprises worldwide.

Additional information about Nx Networks can be found online at
www.nxnetworks.com or by calling +1-703-742-6000.

*SAFE HARBOR STATEMENT0

This press release contains forward-looking statements that involve a number
of risks and uncertainties, including references to projected sales. Readers
are cautioned that all forward-looking statements are subject to risks and
uncertainties, including without limitation, the timing of new announcements
or introductions by the company and its competitors, the acceptance of new
products and services, the hiring and retention of key employees, competitive
pricing pressures, the manufacturing of products, the need for capital,
dependence on third parties for manufacturing, components and products,
general economic conditions, and, with respect to Nx Networks, the risk
factors detailed from time to time in its periodic reports and registration
statements filed with the Securities and Exchange Commission. Readers are
cautioned not to place undue reliance on these forward-looking statements that
speak only of the date hereof. Nx Networks undertakes no obligation to
publicly release the result of any revisions to these forward-looking
statements that may be made to reflect events or circumstances after the date
hereof or to reflect the occurrence of unanticipated events. The filing by Nx
Networks for protection under Chapter 11 of the federal bankruptcy laws may
complicate the ability of Nx Networks to successfully restructure its
operations. It is also possible that vendors, customers, partners, and other
parties doing business with Nx Networks may decide to cease doing business
with Nx Networks as a result of the Chapter 11 filing. It is also possible
that third parties who have previously expressed interest in providing funds
to Nx Networks or otherwise investing funds in the Company or acquiring all or
a portion of its assets may decide not to pursue a transaction with Nx
Networks as a result of its filing for protection under Chapter 11.


                          Contact: John DuBois
                          Company: Nx Networks
                          Title: Chairman and CEO
                          Phone: 703-742-6000
                          Email: john.dubois@nxnetworks.com