FORMER EXECUTIVE OF NORTH ANDOVER CORPORATION SENTENCED FOR SECURITIES AND WIRE FRAUD

Boston, MA... The former Senior Vice President of worldwide sales at Interspeed, Inc. was sentenced in federal court today for his crime in falsely inflating the publicly reported sales and revenues of the now-defunct North Andover corporation.

United States Attorney Michael J. Sullivan and Kenneth W. Kaiser, Special Agent in Charge of the Federal Bureau of Investigation in New England, announced that ARTHUR A. GOODWIN, age 45, formerly of Boxford, Massachusetts and currently of Plano, Texas, was sentenced by U.S. District Judge Richard G. Stearns to 2 years and 6 months' imprisonment, to be followed by 3 years of supervised release. GOODWIN was convicted by a trial jury on June 9, 2006, of eight counts of securities and wire fraud.

Evidence presented during the trial proved that GOODWIN served as Senior Vice President of worldwide sales at Interspeed from December 1999 until he was terminated in October 2000. Interspeed was a NASDAQ-listed Internet corporation that manufactured and sold high speed data communications equipment.

The evidence established that GOODWIN falsely overstated the sales and revenues of Interspeed by approximately $9 million, over 60% of the company's publicly reported revenues, through various fraudulent acts. These included: inducing customers to place orders for Interspeed equipment by entering into secret side letters that provided the customers with the right to return the equipment at no cost, thus inflating the company's apparent sales; fraudulently altering a key contract document on what purported to be the largest sale in Interspeed's history so that the company's internal finance staff and outside auditor would approve recognizing the revenue on the transaction; and taking various steps to evade discovery of the illusory nature of the foregoing sales. Through such conduct, GOODWIN inflated Interspeed's revenues to make them appear higher than the revenues actually generated, thus causing Interspeed consistently to report to the public that it had met or exceeded its revenue targets when, in truth, Interspeed was not meeting its targets.

Interspeed's Board of Directors did not discover GOODWIN's fraudulent acts until late September 2000, at which point the company terminated his employment and reduced its previously announced revenue figures by 60%. Following these disclosures, the price of Interspeed's stock fell by more than 50 %, the company was delisted by NASDAQ, and it subsequently went out of business.

The Securities and Exchange Commission filed a parallel civil proceeding against the defendant. The U.S. Attorney appreciates greatly the cooperation and assistance of the SEC in this matter.

The case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Michael J. Pineault, Chief of Sullivan's Economic Crimes Unit and Assistant U.S. Attorney Jack W. Pirozzolo also in Sullivan's Economic Crimes Unit.

Press Contact: Samantha Martin, (617) 748-3139