<PAGE>
EXHIBIT 99.3
Via Fax and Mail March 2, 2000
Mr. Shlomo Rakib Mr. Zaki Rakib
President Chief Executive Officer
Terayon Communication Systems Terayon Communication Systems
2952 Bunker Hill Lane 2952 Bunker Hill Lane
Santa Clara, CA 95054 Santa Clara, CA 95054
[LETTERHEAD OF CABLELABS(R)]
RE: Our letter dated February 2, 2000
Dear Messrs. Rakib:
This letter is to follow up our letter to you dated February 2, 2000, stating
CableLabs' concerns about misleading statements to the public concerning the
DOCSIS specifications and Terayon's possible contributions thereto.
First, we thank you for your concerns about setting the record straight. Our
letter was triggered by the large number of calls we and members of the
Certification Board received from analysts and members of the media asking us to
verify that SCDMA would be included in the DOCSIS 1.2 specification. CableLabs
concern was that these questions arose from misleading statements made by
Terayon; however, in reviewing the record, we realize that the statements were
more a matter of interpretation.
With the clarifying letter of February 25, 2000 sent from the Certification
Board to Terayon and the other three companies participating in the evolution of
the DOCSIS advanced physical layer, the letter to the IEEE dated September 8,
1999 and the "talking points" all posted on the (www.cablemodem.com) web site,
we believe that the record is now correct. Going forward, we ask for your
assurance that you will help in correctly communicating these points to the
public, so that CableLabs can dismiss this matter.
Mr. Rakib, CableLabs would like to reiterate that Terayon is an important
contributor to the DOCSIS program. We look forward to continuing to work with
you in the future.
Very truly yours,
Cable Television Laboratories, Inc.
/s/ Richard R. Green
Richard R. Green
President and Chief Executive Officer
cc: Certification Board
