Axerra Networks Teams with Ericsson to Deliver Multiservice over IP.

Business Editors/Technology Writers

CeBIT 2002

BOCA RATON, Fla.--(BUSINESS WIRE)--March 12, 2002

Systems Integration and OEM Alliance Enables Both Legacy and

Emerging Services over Packet-Based Metro Networks and

Unified IP or MPLS Networks

Axerra Networks, the leading developer of Multiservice over Internet Protocol (MSoIP) products, announced today the signing of a System Integration and Original Equipment Manufacturer (OEM) Agreement with Ericsson AB. The agreement will allow Ericsson full rights to distribute and support Axerra's award-winning AXN family of Multiservice IP Concentrators as part of the Ericsson Packet Backbone Network (PBN) solutions portfolio.

Axerra's AXN family plays a key role in rounding out Ericsson's IP infrastructure product family, which includes world-recognized products for use at the core and in packet-based metro networks. Axerra's AXN multiservice capabilities complement Ericsson's existing PBN, particularly the AXI 520 and AXI 580 IP Core Routers. Ericsson's PBN furnishes a unified backbone for the new public network, converging voice and data, wireless and wireline services. The AXN's MSoIP technology now enables service providers to cost-efficiently deploy legacy services, including Leased Line and Frame Relay, alongside emerging IP services on Packet Backbone Networks and Metro-Ethernet networks. As part of the agreement, the two companies will also explore cooperative technology opportunities to develop integrated MSoIP solutions.

The AXN Multiservice IP Concentrators were adopted by Ericsson only after a series of rigorous interoperability tests with the PBN portfolio. These series of tests serve as a positive proof-point for the Quality of Service- (QoS-) enabled robustness of Axerra's MSoIP technology. One of the services tested as part of MSoIP interoperability is the Circuit Emulation Service over IP (CESoIP(TM)), which has been submitted as an Internet Draft to the Pseudo-Wire Emulation Edge-to-Edge (PWE3) working group in the Internet Engineering Task Force (IETF).

"This agreement enables the next-generation of true multiservice IP network solutions," said Gil Biran, CEO and Founder of Axerra Networks. "Our ability to provide a scalable and flexible approach to building QoS-enabled multiservice networks uniquely qualifies us to work with Ericsson and its partners to unlock the power of IP networks."

"This agreement gives carriers access to Ericsson's professional services, global distribution, system integration, and support, while they benefit from Axerra's innovative Multiservice over IP technology," said Principal Analyst and Cofounder Michael Howard of Infonetics Research. "Axerra gains world-wide distribution channels that will help to position it solidly as a leader in Multiservice over IP."

Axerra Network's AXN Multiservice IP Concentrator, being displayed at Axerra's stand (Hall 27, Booth C16/2) during CeBIT in Hanover, Germany, defines a new class of products that enables service providers to offer revenue-rich legacy services such as private Leased Lines (LL), Frame Relay (FR), Circuit Switched Voice (CSV), and ATM, alongside emerging IP services such as VoIP and IP-VPN, all over next-generation IP and IP/MPLS network. One of the most exciting innovations for today's service provider market, the AXN and MSoIP are truly changing the business model for unified IP, IP/MPLS, and Metro-Ethernet deployments.

About Ericsson

Ericsson is shaping the future of Mobile and Broadband Internet communications through its continuous technology leadership. Providing innovative solutions in more than 140 countries, Ericsson is helping to create the most powerful communication companies in the world. Read more at http://www.ericsson.com/pressroom

About Axerra Networks, Inc.

Established as Axerra Networks in November 2000, and located in Boca Raton, Florida, the Company develops, manufactures and markets products for the emerging market of Multiservice over IP. Axerra's Multiservice IP Concentrator is the only product on the market that gives carriers the ability to unlock the power of their IP networks by integrating legacy services, such as Frame Relay, ATM, and Leased Line, together with emerging IP services over unified IP, IP/MPLS, and Metro-Ethernet networks. For more information, please contact: [e-mail].