Alloptic Implements First ''Data-On-Demand'' System for Voice, Video and Data Services.

Business Editors/High-Tech Writers

LIVERMORE, Calif.--(BUSINESS WIRE)--June 15, 2004

Alloptic, Inc., a pioneer in the development and deployment of Ethernet passive optical networks (EPONs), today announced that Palmetto Bluff, a 20,000-acre premier Master Planned Community located in Bluffton, South Carolina, has created a national-first "data-on-demand" telecommunications service. This service will be operated by Hargray Communications Group and anchored with the Alloptic fiber optic network solution.

"Palmetto Bluff is unique among Master Planned Communities," said Tom Reiman, president of The Broadband Group, the community's technology consultant. "In addition to a world-class Master Plan, the developers have focused on connectivity and telecommunications excellence as a cornerstone of the community. At Palmetto Bluff, amid spectacular natural beauty rich in wildlife, technology will play a major role in the personality of this spectacular community."

Alloptic's EPON solution offers state-of-the-art voice, video, data and telemetry services. Through the partnership with Hargray, the local telecommunications service provider, residents of Palmetto Bluff have ready access to bandwidth on demand from 256 kbps to 1.5 Mbps for both intranet and Internet data usage. When you combine this with the voice, video, and security features available, the residents of Palmetto Bluff will benefit from a custom broadband network built for the consumer, not the service provider. It is a network that will serve as a model for the nation.

All Palmetto Bluff residents will have access to bandwidth that delivers voice, high-speed data, and analog and digital video services that include an extensive menu of on-demand entertainment options. Additional features include such services as high-capacity data transfer and streaming video. Residents will also have a private password-controlled intranet that delivers community-specific local content, such as local merchant offers, on-line reservations for golf, restaurants and other amenities, as well as life-safety services and public service information. Palmetto Bluff is committed to offering its homebuyers the most innovative technology available today and well into the future.

"Palmetto Bluff represents what is possible when you focus on the needs of your customer," said William Peacher, general manager and chief operating officer for Palmetto Bluff. "Our residents select Palmetto Bluff because they are looking for a unique lifestyle and the ability to enjoy the beautiful surroundings while being fully connected to the rest of the world. I think the rate of sales for our lots and the fact that the project has sold more than $93 million in real estate in the past twelve months is proof that we 'got it right.'"

"We are pleased to deliver a state-of-the-art infrastructure for Palmetto Bluff," said John Yuzdepski, vice president of sales and marketing for Alloptic. "Clearly, today's homebuyers are expecting more, and this includes the capabilities of a high-speed communications network. The unique ability to dynamically change bandwidth is a true differentiator for the community, and highlights the importance of always-on, ultra-high-speed Internet in the home, whether for general surfing, working remotely or conducting research for a homework assignment."

Palmetto Bluff, Hargray and Alloptic have combined to build a "connected community" combining technology, lifestyle, and productivity. This, along with the unique data-on-demand family of products, secures a place for this development as the nation's broadband leader.

About Alloptic, Inc.

Alloptic delivers proven, standards-based, passive optical access equipment that simplifies cost-effective Fiber-to-the-Premises (FTTP) deployment. Alloptic's unique, flexible technology enables service providers to deploy true triple-play services, including voice (TDM and IP), video (RF and IP) and data. Founded in 1999, Alloptic is privately held and based in Livermore, California. For more information, visit http://www.alloptic.com.

Crescent Resources/Palmetto Bluff

Crescent Resources, the real estate management and development subsidiary of Duke Energy, purchased Palmetto Bluff. Crescent has, over the last three decades, developed a reputation for adding value to the land entrusted to it. For Crescent Resources, Palmetto Bluff offers the rare opportunity to create an incomparable community while preserving one of the country's last unspoiled places. It consists of 32 miles of waterfront in the heart of the heart of the Carolina Low Country, a Jack Nicklaus Signature Golf Course, and a 50-room luxury inn, managed by Auberge Resorts of Napa Valley, Calif.

Hargray Communications Group

Hargray Communications Group is an integrated telecommunications services provider with operations in the greater Hilton Head Island, Bluffton and Hardeeville, South Carolina, area. The company's operations include traditional telephone carrier services, as well as broadcast production facilities, wireless, cable and Internet services.

The Broadband Group

The Broadband Group (TBG) is a full-service technology and telecommunications consulting firm based in Sacramento, Calif., that assists clients in developing unique Technology Master Plans for voice, video, data, security, home control/management, and energy services in their communities.