Allied Telecom Group Selects Actelis' Ethernet-over-Copper Platforms to Immediately Deliver High-Quality, High-Bandwidth Ethernet Services.

CHICAGO -- Allied to Expand Service Offerings and Deliver Business-Class Ethernet Services to Customers Throughout the Washington DC Metro Area 

Actelis Networks(R), a leading supplier of solutions that enable profitable, carrier-grade broadband services over local-loop copper, today announced at Supercomm 2004 that Allied Telecom Group has selected its MetaLIGHT(R) Ethernet-over-Copper platforms and will immediately begin offering Ethernet services to businesses throughout the Washington DC metro area. Actelis platforms allow Allied Telecom to significantly expand their customer base by cost-effectively offering scalable Ethernet services to those businesses only served by copper. Walker & Associates, an Actelis' business partner, will support Allied Telecom as they deploy the platforms and begin delivering new Ethernet services to customers.

Actelis is demonstrating its Ethernet-over-Copper platforms at Supercomm 2004, held June 22 - 24 in Chicago, IL, in booth #13356. Actelis is also demonstrating its solutions in the Ethernet in the First Mile (EFMA) interoperability showcase in booth #20338.

Allied Telecom is a facilities-based Internet service provider serving the Washington DC metro area. For more than 14 years, they have been offering broadband telecommunications solutions including XDSL, T1/T3/OC-3 and Metro Ethernet services. Allied selected Actelis' Ethernet-over-Copper platforms to meet a rapidly growing demand for Ethernet services. Actelis' platforms will allow Allied to utilize a "build-to-order" service model that will eliminate the need to invest in equipment before revenue is generated. Once a customer is secured, Actelis' platforms can be deployed within a few days, allowing Allied to immediately begin generating revenue.

"Actelis' platforms are ideal because of how quickly and economically they allow us to eliminate barriers to delivering high-bandwidth Ethernet services to a wide variety of customers," said Ken Williams, president and chief executive officer, Allied Telecom Group. "The Actelis platforms allow us to extend our value proposition of delivering mission critical, extremely reliable, Ethernet services to all our customers, including those only served by copper. Since Actelis' platforms utilize existing copper facilities, Allied Telecom is able to rapidly respond to business demand for fault tolerant, multi-megabit Internet access and Metro Ethernet services. Delivery of Ethernet services over multiple copper pairs provides a level of circuit protection and reliability not available with traditional T-1 service deployment. We can expand our Ethernet service offerings and generate additional revenue without dramatically increasing our capital expenditures."

Prior to selecting Actelis' platform to deliver Ethernet services, Allied Telecom tested multiple Ethernet-over-Copper solutions. The testing proved that Actelis' platforms provided superior rate, reach and reliability compared to other copper-based Ethernet solutions. They also proved to be sufficiently robust enough to meet its real-world deployment needs for carrier-class Ethernet services.

"Allied Telecom Group is a perfect example of how Actelis can help service providers begin immediately offering new revenue services," said Bruce Hammergren, vice president of North American sales, Actelis Networks. "They needed to offer new revenue generating services, without an initial CAPEX expenditure. With our platforms, they can actually deliver high-quality, high-bandwidth Ethernet services to customers in a matter of hours utilizing the existing infrastructure."

Available in point-to-point or point-to-multipoint configurations, Actelis' MetaLIGHT(R) Ethernet-over-Copper platforms allow service providers to deliver up to 70 Mbps of high-quality Ethernet services to customers or locations over the existing copper plant. Designed to comply with the emerging IEEE 802.3ah Ethernet in the First Mile (EFM) standard, they can be quickly and seamlessly integrated into service provider networks. Additionally, MetaLIGHT platforms are powered with Actelis' patent-pending MetaLOOP(R) technology, which includes features such as cross talk cancellation (CTC), cross-talk management (CTM) and cut-line protection, among others. This technology allows Actelis' platforms to provide far better rate, reach and reliability than other Ethernet-over-Copper solutions. With the ability to provide high-quality bandwidth to distances beyond 18,000 feet/5.5km, Actelis' platforms are ideal to support a wide range of broadband applications including transparent LAN services, LAN interconnection, voice and video over IP. They are also well suited to backhaul bandwidth to DSLAMs/NGDLCs, WiFi and cellular base stations.

About Actelis Networks

Actelis Networks is a leading supplier of solutions that enable service providers and enterprises to deliver carrier-grade, new broadband services using existing copper plant. With the superior rate, reach and reliability of Actelis' standards-based, award-winning MetaLIGHT products, service providers and enterprises can deliver high bandwidth, symmetrical services to their customers and/or locations 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 website at www.actelis.com.

About Walker & Associates

Located in Welcome, NC, Walker is a woman-owned wholesale distributor providing supply chain management, installation, product integration, and custom cables to the US telecommunications service providers. Customers include telephone companies, long distance carriers, wireless carriers and government telecommunications offices.

About Allied Telecom

Allied Telecom is a Washington DC-based, minority-owned "facilities based" ISP who has been providing telecommunications solutions to organizations in downtown DC and the surrounding metro areas for over 14 years. Allied's network is configured with full redundancy between multiple "Tier 1" national fiber optic backbones. Allied offers a full range of Broadband and Telecom Systems Integration services. From simple ultra-reliable Internet Connectivity to high-end custom engineered solutions, Allied is the vendor of choice for many well known organizations in the Washington DC area.

Actelis Networks, MetaLIGHT and MetaLOOP 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.