Amedia Networks, Inc. Enters into Revised Agreement Significantly Reducing Future Royalty Payments; Royalty Reduced from 3.2% to No More Than 1.5%; Other Payments Significantly Reduced.

EATONTOWN, N.J. -- Amedia Networks, Inc. (OTC BB: AANI), a provider of home gateways and switched Ethernet ultra-broadband solutions, today announced that effective as of July 10, they have entered into an Amendment to Prior Agreements covering royalties on intellectual properties of technology licensed to Amedia Networks by Lucent. In addition, the two companies have also agreed to enter into discussion with respect to the technical evaluation of Amedia's HG-V100 VDSL2 Gateway and explore related marketing opportunities.

Under the terms of the Amendment, in lieu of the current royalties of 3.2% of certain revenues payable under the Agreements, the Company will be required to pay royalties in the amount not to exceed 1.5% of specified revenue sources from the Company's Gateway and Switch products. No royalties will accrue or become payable until July 10, 2008. In addition, a payment of $835,000 outstanding under the Agreements was waived and the Company paid $200,000 upon the execution of the Amendment in respect of deliverables received by it under the Agreements. In addition, the parties agreed to terminate the license that the Company was granted to patents under the Agreements; accordingly, the Company is no longer obligated to make any payments owing under such patent license. The termination of the patent license does not affect the Company's rights under the Agreements to develop and sell products based upon or incorporating these patents.

Frank Galuppo, President and CEO, of Amedia commented, "Our revised agreements could not have come at a better time for AANI as we transition from a developmental stage Company into a revenue producing firm. We consider the financial impact of this new agreement to be significant for our shareholders. From a financial standpoint, the reduction of royalties by more than half, from 3.2% to no more than 1.5%, will enhance our cash flow as we begin our transition to revenue generation and continue our growth progression throughout 2007 as we launch our home gateways and other Ethernet-based solutions. The net reduction in payments of $635,000 is also a significant help to our cash flow. We believe that the true financial impact and appreciation by shareholders of this revision to our royalty agreement will be realized as we continue to execute on our business strategy by shipping AANI products to market."

About Amedia Networks, Inc.

Amedia designs and develops premises gateways and switched Ethernet access solutions. These secure and flexible solutions are used by network operators deploying Fiber-to-the-Premises, Fiber-to-the-Building, or Fiber-to-the-Node infrastructures in order to offer their residential and enterprise subscribers high-speed data, IP video, and Voice over Internet Protocol (VoIP) services with the highest level of service quality. For more information about Amedia Networks, please visit www.amedia.com.

This press release may contain "forward-looking" statements as that term is defined in the Private Securities Litigation Reform Act of 1995. A number of factors could cause Amedia's actual results to materially differ from anticipated results expressed in such forward-looking statements. Such factors are addressed in Amedia's filings with the Securities and Exchange Commission (available at www.sec.gov). Amedia assumes no obligation to update any forward-looking statements in order to reflect events or circumstances that may arise in the future.