DSET Ships Enhanced Version of ezLocal
Ordering Gateway

New Support for Resale and UNE-P Expands
DSET's Target Market

Bridgewater, NJ - February 8, 2000 - (NASDAQ: DSET) - DSET Corporation, a leading supplier of business-to-business e-commerce solutions for the telecom industry is shipping a new release of its ezLocal gateway, which electronically interconnects competitive local exchange carriers (CLECs) with their trading partners to automate the ordering of network facilities and telephone services for CLEC customers.

The new release, the ezLocal 2.6 gateway, extends the substantial benefits of electronic bonding to non-facilities based CLECs that are "resellers" and additionally offers the significant economic advantages of UNE-P operation. Short for "Unbundled Network Element-Platform," UNE-P is an operating mode now supported by ezLocal 2.6 that enables a CLEC to lease all of the network elements (loop, switch port, transport, and more) needed to provide phone service for new customers.

"With features to support resale and UNE-P services, the ezLocal 2.6 gateway will enable us to serve a much larger group of CLECs," said Paul Smith, DSET's senior vice president of strategic planning and product management. "By including resellers among the CLECs that can benefit from deploying ezLocal, we've increased our base of potential customers by as many as a thousand competitive carriers."

Non-facilities based CLECs do not have their own switches. They purchase their telecom services from trading partners and resell those services at competitive prices. The services are provided exclusively via their trading partners' switches and phone lines.

"UNE-P creates a new, more dynamic model for the competitive telecom market," said Phil Cavallo, DSET's senior vice president of sales and marketing. "Carriers operating in this mode could achieve margins as great as 40 percent, or more than twice what traditional non-facilities based resellers receive in many cases.

"In addition to this higher margin, companies entering the market will have a substantially reduced capital outlay for switches and related equipment. We believe that this will translate into an increased number of CLECs in the market and corresponding increased demand for products such as our ezLocal gateway."

"By shipping ezLocal 2.6, we're making a very successful product even more appealing for facilities-based CLECs as well," stated Paul Smith. "ezLocal's new resale and UNE-P capabilities give these facilities-based competitive carriers substantially more flexibility when it comes to where and how they want to operate. For example, using these capabilities, facilities-based CLECs can quickly turn on revenue streams from markets where they have yet to establish connections to their switches. So regardless of whether a carrier is facilities-based or non-facilities based, ezLocal 2.6 can give any CLEC a much bigger market footprint."

Since being introduced in December 1998, ezLocal has been deployed by facilities-based CLECs across the United States to electronically interconnect with trading partners. The ezLocal gateway can cut the time required to order telephone lines for new customers to less than two weeks from an interval that can sometimes be as long as four to six weeks. The ezLocal gateway also played a key role in the interconnection between competitive carriers and Bell Atlantic that led to the recent Section 271 approval of Bell Atlantic's application for entry into the long-distance market.

Non-facilities based CLECs can use the same trading-partner interfaces with ezLocal 2.6 that have contributed to the nationwide success that facilities-based carriers have experienced with previous versions of ezLocal. At present, the rate of growth for this emerging market is limited only by the regulatory approval of pricing for UNE-P interconnection between CLECs and incumbent carriers. This pricing is specified by state regulatory groups, and to date only about ten states have established such pricing.

ezLocal is part of DSET's family of software solutions for automating critical pre-order, order, and post-order functions. In addition to ordering local loops, these functions include providing sales quotes; facilitating local number portability; supporting 911, calling-card, and caller ID services; changing long-distance providers; and trouble-ticket administration.

About DSET:

DSET Corporation is a leading provider of business-to-business e-commerce solutions for the global telecommunications marketplace. The DSET suite of electronic-bonding gateways is designed to interconnect the operations support systems (OSSs) of service providers that must exchange information and share network capabilities with trading partners to provision and maintain a growing range of services for customers in the competitive telecom market. DSET's local number portability solutions play a key role in enabling business and residential customers to change service providers without changing their local phone numbers. DSET is headquartered in Bridgewater, New Jersey, and the company's Web site can be viewed at www.dset.com.

Statements regarding financial matters contained in this press release, other than historical facts, are forward-looking. Since all statements about DSET's plans, estimates, and expectations are based on current projections that involve risks and uncertainties, and are subject to change at any time, the company's actual results may differ materially from expected results. Investors should consider these risks and uncertainties, which are discussed in documents filed by DSET with the Securities and Exchange Commission. These documents identify important factors that could cause the actual results to differ materially from those contained in the projections or forward-looking statements. DSET expressly disclaims any obligation to update any forward-looking statements.

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DSET Contacts:

Media Relations: Kathy Claxton, Corporate Marketing Communications Manager, 908-526-7500 Ext. 1280

Investor Relations: John P. Murphy, Westfield Investor Relations, 908-233-1558, e-mail: westfieldir@worldnet.att.net

DSET and the DSET logo are registered trademarks of DSET Corporation.