Bob Frankenberg, former CEO of Novell Inc. and vice president of HP, has accepted the position of president and CEO of Encanto Networks Inc., a company that plans to lead the industry with a unique Java-based, "plug-and-go" Internet appliance for the consumer and small business markets.

Encanto's mission is to develop an Internet appliance that is inexpensive to buy and maintain, easy to use and features a high degree of built-in intelligence.

Pulsar Internacional S.A. de C.V. provides majority funding and significant consumer business expertise for Encanto Networks. Pulsar's on-going commitment has been extended by their partnership with Bob Frankenberg, one of Silicon Valley's more experienced industry leaders and technology pioneers. Frankenberg brings more than 28 years of experience in networking and computer system development to Encanto, which will guide the company toward a leadership position in the Internet appliance marketplace.

"We've entered an era when the Internet has become the great equalizer for all businesses, organizations and consumers," said Frankenberg. "Encanto Networks is focused on creating an inexpensive, seamless and complete Java-based Internet solution for everyone who needs the Internet presence of large corporations, but lacks the technical expertise and staff to manage and maintain a website."

Encanto's first product will be a consumer electronic appliance designed to help individuals, small businesses and small retailers own an affordable, active presence on the Internet. Encanto's product will allow them to build and manage their own website, send and receive email and conduct business on the Internet. Further details will be announced later this year.

"Today's announcement marks the beginning of an exciting first stage for Encanto," said Alfonso Romo, chairman and CEO of Pulsar Internacional. "We are firmly committed to Encanto's vision and purpose and believe Bob Frankenberg can build the company into an industry force."

A strategy built on alliances

Encanto Networks' business strategy leverages alliances with leading technology companies that support the Encanto vision. Encanto has developed an alliance with Sun Microsystems to support development of Java-based solutions, and alliances also are under way with major industry players including HP and ANS.

"HP shares Encanto's vision of creating end-to-end solutions that make the Internet safe and easy-to-use for our customers," said Richard E. Belluzzo, HP executive vice president and head of HP's Computer Organization. "We are eager to work with Bob Frankenberg and his team as part of our push to develop advanced technologies that provide Internet connectivity for HP appliances."

In providing its Java solutions for Encanto's product development initiatives, Sun Microsystems also supports Encanto's goals. "We're very pleased about Encanto's support of the Java Platform," said Jon Kannegaard, vice president of software products at JavaSoft, a business unit of Sun Microsystems Inc. "And we're enthusiastic about Encanto's mission to develop Internet applications for consumer markets and small businesses."

ANS, a leading network service provider, will also work closely with Encanto to provide customers with ISP access as Encanto's Internet appliance penetrates the market.

"ANS is pleased to be working with Encanto Networks as we jointly roll out new products and services," said Bruce Bond, president and CEO of ANS. "We believe that our partnership with Encanto will provide small businesses with an innovative, practical and painless Internet presence."

Encanto's management team

Key members of Encanto's management team include:

Dr. George (Jay) Keyworth II, Encanto chairman and co-founder, who also currently serves on the board of directors of HP and General Atomics. Keyworth served as White House Science Advisor to President Ronald Reagan, and is the founder and chairman of the Progress and Freedom Foundation.

Gari Cheever, executive vice president and chief financial officer, joined Encanto from Brobeck, Phleger & Harrison, where he was a partner in that firm's Palo Alto office working with a large number of Silicon Valley companies.

Jeff Stern, vice president of marketing, joined Encanto from VeriFone, where he served as director of client-server software. Prior to VeriFone, Stern worked for McDonnell-Douglas and Northern Telecom.

Kal Krishnan, vice president of software engineering, was co-founder of Independence Technologies Inc., where he served as president and CEO prior to that company being sold to BEA Inc.

John Fisher, vice president of operations, was formerly president and CEO of Akashic Memories Corp.

Strong backing by Pulsar Venture Group

Pulsar Venture Group, a member of the Pulsar Internacional group of companies, provides Encanto's primary funding. Pulsar Internacional is a multi-billion-dollar business group with a track record of entrepreneurial success.

Pulsar Venture Group's mission is to support and develop high-tech, entrepreneurial projects, by investing capital, human resources and operations expertise. Pulsar Internacional, through Pulsar Venture Group, provides Encanto Networks with financial backing as well as a strategic resource network through its group of companies.

"I am very pleased to be working closely with Pulsar Venture Group and the Pulsar Group of companies," said Frankenberg. "These companies serve as models of success in a wide range of consumer products and high technology industries."

Asian Venture Ltd. has also made a major investment in the company.

About Encanto Networks Inc.

Encanto Networks Inc., headquartered in Santa Clara, is developing a unique Java-based Internet consumer electronic appliance for small retailers, home offices and individuals. Encanto will enable everyone to own an affordable, active presence on the Internet by removing the cost and technology barriers of owning and maintaining a website. Encanto's predecessor, Flat Connections Inc., developed much of the company's technologies.