Actelis Networks SHIPS Industry's First Ethernet in the First Mile 'EFM' - Ready Solution and Announces North Pittsburgh Systems as First Customer.

Business Editors

FREMONT, Calif.--(BUSINESS WIRE)--Feb. 3, 2003

North Pittsburgh Systems standardizes on the Actelis MetaLIGHT

100E for roll-out of profitable Ethernet WAN and ISP services to

customers over existing copper plant through its ILEC and CLEC 

subsidiaries, North Pittsburgh Telephone and Penn Telecom.

Actelis Networks(R), the first company to enable fiber-quality transport services over local loop copper, today announced the availability of its MetaLIGHT(R) 100E system. Actelis also today announced that North Pittsburgh Systems has standardized on the MetaLIGHT 100E system to offer customers revenue-bearing, high-speed, fiber-quality Ethernet services.

Based on Actelis Networks patented MetaLOOP(TM) technology, the MetaLIGHT 100E system allows service providers to offer 3 to 60 Mbps of fiber-quality Ethernet service over the existing copper plant using as few as two pairs. The MetaLIGHT 100E is simple to deploy without the need for loop pre-qualification. The superior rate and reach of the product maximizes the available revenue from customers throughout the Carrier Serving Area (CSA) and beyond.

"The Metro Ethernet market is a major opportunity for new and existing carriers to expand their revenues at a critical time," said Michael Kennedy, managing partner & co-founder, Network Strategy Partners, LLC. "With this announcement, Actelis has established a clear lead in this market with a telco-grade product. Ethernet services delivered over copper plant greatly expand the addressable market, can be easily sold and supported by existing carrier organizations, and can be delivered at price-points supporting sustained profitability."

"Until now, service providers had to build expensive infrastructure to lay fiber to deliver high-speed Ethernet or else deny service to their customers," said Tuvia Barlev, president and chief executive officer, Actelis Networks. "Fortunately, Actelis is now shipping a breakthrough product, the MetaLIGHT 100E system, which creates an attractive third alternative for service providers and their customers. The MetaLIGHT 100E uses the existing copper plant to provide no compromise, high-speed, copper-based Ethernet services. This system avoids tying up scarce capital resources for speculative and expensive fiber build-outs. North Pittsburgh Systems recognized the substantial business opportunity enabled by the MetaLIGHT 100E through the delivery of carrier-class Ethernet services over the existing copper loop plant, both in region and out of region."

Prior to selecting the MetaLIGHT 100E to deliver Ethernet services, North Pittsburgh Systems tested multiple business class broadband over copper solutions including Inverse Multiplexing over ATM (IMA). Both the lab and field tests proved that the MetaLIGHT 100E provided superior bandwidth and lower delay compared to the other solutions available on the market. The MetaLIGHT 100 system offered the highest rate, reach and reliability available and proved it was sufficiently robust to meet its real-world deployment needs for a carrier-class Ethernet service.

"We are very encouraged by the performance of the MetaLIGHT 100E in our test environment and look forward to the commercial deployment of this product," said Al Weigand, vice president of operations, North Pittsburgh Systems. "We tested multiple solutions, including T1-IMA and the MetaLIGHT 100E outperformed all solutions currently available on the market. The MetaLIGHT provides us with a promising business case by reducing the costs associated with offering broadband services."

About Actelis Networks

Actelis Networks is the first company to enable telecom operators to generate carrier grade new broadband service revenues using existing local loop copper. With the superior rate, reach and reliability of Actelis' award-winning MetaLOOP technology, carriers can deliver high bandwidth symmetric services to their customers without further infrastructure investments. 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 is shipping generally available products to customers throughout the United States, as well as in Europe and Asia Pacific. For more information, please visit the corporate Web site at www.actelis.com

Note to Editors: Actelis Networks and MetaLIGHT are registered trademarks of Actelis Networks, Inc. MetaLOOP is a trademark 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.