Axerra Networks to Showcase Pseudo-Wire Solutions at ITU Telecom World, Hong Kong.

Award-Winning AXN Pseudo-Wire Gateways and Access Devices[TM] Enable A New Era in Mobile Wireless Backhaul and Service Delivery

BOSTON & HONG KONG -- Axerra Networks, "The Pseudo-Wire Company[R]" and the leading provider of circuit emulation and service emulation solutions will showcase its award-winning AXN Pseudo-Wire Emulation solutions at ITU Telecom World in Hong Kong, December 4-8, 2006. Axerra's AXN Pseudo-Wire gateways and access devices offer the industry's most wide-ranging set of multi-service protocols over packet, enabling service providers to offer revenue-rich legacy services, including all generations of mobile services, alongside emerging IP services (e.g. HSxPA, IP VPN) over next-generation metro Ethernet, MPLS, and IP-based infrastructures.

"Pseudo-Wire Emulation (PWE) is an exciting disruptive, Ethernet-based technology being actively considered by carriers as a lower-cost alternative to conventional solutions," states Tal Liani, Research Analyst at Merrill Lynch. "Pseudo-Wires are based on Ethernet, which is more efficient for bursty data traffic transport. Moreover, from a cost point of view, PWE technology scales well, with price per megabit declining substantially as the bandwidth increases."

For mobile wireless operators, Axerra's AXN Pseudo-Wire Emulation solutions enable backhaul of voice and data services for 2G, 2.5G, 3G, HSDPA, and clock synchronization, all over packet networks - Ethernet, DSL, PON, HFC, and WiMAX. These packet access networks provide immediate reduction in recurring backhaul charges while providing the additional bandwidth needed for emerging services.

With Axerra Pseudo-Wire solutions, Ethernet service providers, including cable MSOs, can leverage their existing metro Ethernet and HFC infrastructures to support commercial services to small/medium-sized businesses, both emerging services as well as the traditional T1/E1 voice and data services that business customers depend on. In addition, Axerra Pseudo-Wires enable Ethernet service providers to serve the mobile backhaul market, where mobile operators currently spend more than $20B/year for T1/E1 leased lines to backhaul traffic.

For incumbent and competitive operators, a multi-service convergence strategy based on Pseudo-Wires enables the carrier to unify the transport of all services on a single packet network that leverages metro Ethernet, DSL, and WiMAX in the access network and IP and MPLS in the network core, supporting both traditional T1/E1 and emerging services. In addition, Axerra's solutions enable these operators to serve the growing mobile backhaul market.

"The showcasing of Pseudo-Wire technology at ITU Telecom represents a significant milestone," says Gil Itkin, Axerra's VP Sales - APAC. "The Asian market, which has already undergone the IP revolution and leads the world in broadband packet deployments, represents a tremendous opportunity for Pseudo-Wire solutions. With top-tier customers and active offices in Hong Kong, Singapore, Korea, and India, Axerra is well positioned to provide operators with the benefits of this exciting new technology."

Axerra Networks and its Pseudo-Wire technology have garnered a number of prestigious industry awards this year. At the 3GSM World Congress in February, Axerra's solutions were named as "commended" finalists in the GSM Association 2006 Awards for "best radio access product or service." In May, Axerra was named a recipient of the 2006 Red Herring 100 Europe award, which recognizes the 100 top private companies playing a leading role in innovation and technology. In June, Red Herring magazine, in conjunction with Israel Venture Association, identified Axerra as one of the top three Israeli startups in telecommunications and a finalist in the Israeli Startup Contest 2006. Also in June, Axerra was named to FierceMarket's Fierce 15 list, honoring the company's innovations that benefit the wireless market.

See Axerra Networks' AXN Pseudo-Wire solutions at ITU Telecom World, December 4-8, 2006, Hong Kong International Airport, AsiaWorld-Expo, Israeli Pavilion, Stand 2018B. www.itu.int/WORLD2006/

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 www.axerra.com.