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Hybrid Networks to Shut Down

Hybrid Networks Inc. announced Thursday that it would cut 80 percent of its
work force Friday and shut down by the end of April.

In January, the fixed-wireless-system maker said it would exceed its
fourth-quarter revenue guidance by $2 million, for a total of $7 million in
revenue for the period.

Then it brought in a new executive vice president and chief financial
officer, Scott C. McDonald, and in its fourth-quarter results Feb. 20, it had
narrowed its losses, seen its revenue fall and announced that it had concerns
about its liquidity.

Hybrid issued a statement Thursday that its attempts at a sale or merger were
not successful and that it expected first-quarter revenue of $700,000. It has no
backlog for future periods, it added.

Payment of employee compensation, termination and other expenses related to
Friday's layoffs will leave the company with less than $1 million in cash and
accounts receivables, and it 'does not foresee having sufficient liquid assets
to continue even its scaled-back operations beyond April 30, 2002,' it said.

The company added that as a result, it will shut down.

The company has liabilities of $5.5 million in convertible notes, secured by
its assets, and obligations to its landlord, it added. After settling with
creditors, Hybrid said, nothing will be left for shareholders.

A company spokeswoman did not return calls.