Actelis Networks MetaLIGHT 1500 Wins ''Product of the Year'' From Internet Telephony Magazine.

Business Editors/High-Tech Writers

FREMONT, Calif.--(BUSINESS WIRE)--Jan. 14, 2003

MetaLIGHT 1500 Selected for Technological Innovation and

Genuine Business Value to Worldwide Service Providers

Actelis Networks(R), the first company to enable fiber-quality transport services over local-loop copper, announced today that Internet Telephony(R) magazine has chosen the MetaLIGHT(R) 1500 as a winner of their prestigious Product of the Year Award.

The MetaLIGHT 1500 is a high-speed, symmetrical, point-to-point transport system, and is the first product based on Actelis' industry-leading MetaLOOP(TM) technology. It eliminates the last-mile bandwidth bottleneck by transforming the existing copper loop into a broadband transport that covers the Carrier Serving Area (CSA) with both fiber quality and fiber performance. Offering unprecedented rate, reach and reliability, the MetaLIGHT 1500 allows carriers to quickly and inexpensively offer high-speed, copper-based broadband services to small and medium-sized enterprises (SMEs).

"The Product of the Year award is meant not only to honor the outstanding teams who developed and manufactured the products and services on our winning list, but also to educate our readers on the vast array of offerings in this market. Choosing the winners was a difficult process, and we spent many hours studying the applications we received from vendors, as well as looking through materials we collected on our own over the past year," said Greg Galitzine, editorial director of Internet Telephony magazine. "Actelis Networks deserved the honor of Product of the Year due to a proven commitment to producing quality products."

The award not only recognizes outstanding achievement, but also serves as "buyer's guide" for IP telephony consumers. Editors reviewed more than 150 applications for the honor before selecting the solutions that, in their view, demonstrate the vision, leadership and attention to detail that are the hallmarks of Product of the Year Award winners.

"We are honored to have our MetaLIGHT 1500 selected by Internet Telephony magazine as their Product of the Year," said Hamid Lalani, senior vice president of global marketing and business development for Actelis Networks. "This award demonstrates that innovation and creativity has continued in this industry despite the downturn. Actelis is leading that process by developing solutions that enable all Telcos to cost-effectively provide reliable high-speed services to businesses on existing copper plant."

About Actelis Networks

Actelis Networks is the first company to enable fiber-quality transport over local loop copper. By radically boosting the speed, range, and reliability of copper to achieve fiber performance in the local loop, Actelis allows carriers to deliver bandwidth today to points further from the core of the network without further cabling investment. Founded in 1998 and headquartered in the Silicon Valley, Actelis Networks is backed by preeminent telecom investors, including New Enterprise Associates, The Walden International Investment Group, U.S. Venture Partners and The Carlyle Group. Actelis was named one of the Ten Most Intriguing VC fundings of 2001 by Red Herring. Actelis announced general availability of its MetaLIGHT 1500 in September of 2002 and is generating revenue in carrier networks in the United States. For more information, please visit the corporate Web site at www.actelis.com.

About INTERNET TELEPHONY magazine

The convergence of voice, video, fax, and data has revolutionized the world of telecommunications. Internet telephony has been proven to drastically reduce long-distance costs and continues to provide unprecedented opportunities for service providers, resellers, developers, and end users alike. Internet Telephony is the only magazine that focuses on providing the information that will help you take advantage of this exciting technology. Launched as a quarterly publication in January 1998, Internet Telephony magazine has been published monthly since October 1998. Still the only BPA-audited publication dedicated solely to coverage of next-generation, IP-based telecommunications, Internet Telephony provides readers with the best information necessary to learn about and purchase the equipment, software, and services they need to take advantage of Internet telephony.

Actelis Networks and MetaLIGHT are registered trademarks of Actelis Networks, Inc. One or more U.S. and foreign patents pending cover the product described above. All other trademarks used herein are the property of their respective owners.