Axerra Networks' Solution Named as ''Short-Listed Nominee'' for GSM Association Award; Backhaul Solution Honored in ''Best Radio Access Product or Service'' Category; On Display at 3GSM World Congress.

BOCA RATON, Fla. -- Axerra Networks, "The Pseudo-Wire Company(TM)" and leading provider of circuit emulation and service emulation solutions, announced today that it has been nominated for a prestigious 2006 GSM Association Award. Its AXN Pseudo-Wire Full-Service Solution for Mobile Wireless Backhaul, which empowers providers to utilize the capacity and flexibility of low-cost packet access networks as a full-service backhaul alternative to TDM access, is short-listed in the "Best Radio Access Product or Service" category. Axerra's Pseudo-Wire solution will be on display at the 3GSM World Congress, February 13-16th in Barcelona at Stand #D-175 in Hall 1.

Axerra's Pseudo-Wire solution is the financial enabler for HSDPA and other high-speed 3G services. By enabling a new era of packet RAN that supports the transport of voice, synchronization information, and high-speed data, the AXN simultaneously slashes operators' recurring costs while catalyzing the deployment of Carrier Ethernet, GPON/EPON, xDSL, and WiMAX in the RAN. The resulting unified, high-capacity RAN reduces OpEx while enhancing the user experience for high-speed 3G services.

Rob Conway, CEO of the GSM Association, commented, "The 2006 GSM Association Awards have been specifically designed to showcase the diversity of products and services and the quality, ingenuity and level of innovation that combine to fuel the mobile value chain. Entries this year have again exceeded our highest expectations, reflecting the vibrancy of the mobile industry on a global basis. My congratulations on your successful nomination for the 2006 Awards."

At the 3GSM World Congress, Axerra will display the solution that has garnered the largest deployments of Pseudo-Wires in mobile backhaul applications. AXN Pseudo-Wire Gateways and Access Devices(TM) are currently installed and carrying revenue-generating traffic for top-tier operators on four continents. The display will showcase the key advantages of Axerra's full-service solution for mobile backhaul:

--The AXN is an end-to-end, full-service solution that transparently supports all the features of every generation of mobile service, including GSM, GPRS, EDGE, and UMTS.

--The AXN also supports all generations of CDMA and CDMA2000 services.

--The AXN is the only solution that scales from the BTS/NodeB (with a small low-cost solution for cell sites) to the BSC/RNC (with high-density, carrier-class solutions for aggregation PoPs and COs).

--At the BTS and NodeB, the AXN is the only solution combining circuit emulation and service emulation (TDM plus HDLC, Frame Relay, and the ATM with IMA needed for 3G UMTS). At the RNC, AXNs furnish high-speed Ethernet and STM-1 interfaces with ATM VC aggregation and switching, obviating the need for an ATM switch.

--The AXN is the only solution tested and proven to meet the demanding clocking/synchronization requirements of UMTS over any scenario. The AXN employs Axerra's state-of-the-art High-Precision Clock Recovery (HPCR(TM)) mechanism that provides the accuracy and greater temperature stability needed at the BTS/NodeB.

--AXN Pseudo-Wire Access Devices and Gateways integrate easily with the equipment already installed in the BTS, the NodeB, the BSC/RNC, and/or the MSC. In addition, the AXN solution is certified and supported by most of the top-tier mobile incumbent vendors.

"We are thrilled with this validation from the GSM Association judges and from the industry," said Gil Biran, founder, President, and CEO of Axerra Networks. "This award confirms that the time is right for Pseudo-Wires in the radio access network, and it is clear that Axerra is leading the charge. This honor, together with initiatives with our world-class partners, only serves to increase our momentum in the market."

The ability to support all generations of voice and data mobile wireless services over a single packet-based RAN ensures a smooth transition from one generation to the next, allowing operators to dynamically share RAN capacity among multiple services. Adding incremental network capacity is only needed to support actual growth in user traffic, not just to enable migration from one service to the next. Capacity is not stranded as customers migrate away from a legacy service, as it is with point-to-point lines that are dedicated to a specific service.

About GSM Association

For more information, please visit http://www.gsmawards.com

About Axerra Networks, Inc.

Axerra Networks is the leading provider of circuit emulation and service emulation solutions over packet access networks. Axerra's Pseudo-Wire solutions enable mobile wireless operators, cable MSOs, competitive service providers, and incumbent carriers to extend IP + legacy voice and data services in native format over Ethernet, IP, and MPLS networks. The result is greater operational efficiency, new revenue opportunities, and a smooth migration strategy to a single converged network, without stranding any revenue streams from profitable legacy services. With Axerra's Pseudo-Wire solutions, service providers can convert any packet access network (Carrier Ethernet, broadband wireless including WiMAX, cable HFC, xDSL, PON, etc.) into a full-service alternative to TDM access. For more information, please visit: http://www.axerra.com.