Axiowave Networks Addresses IP Economics with Next-Generation Convergence Router; XCR128 Deployed by PowerNet Global across Nationwide Network.

Business Editors/High-Tech Writers

MARLBOROUGH, Mass.--(BUSINESS WIRE)--June 1, 2004

Axiowave Networks, developers of the industry's first true core/metro routing platform purpose-built to enable significant improvements to service providers' presently economically challenged IP/MPLS business model, announced today the availability of the XCR128(TM) service convergence router. With the XCR128, Axiowave is delivering performance breakthroughs for wavelength utilization, new premium services supported by unparalleled service level agreements (SLAs), and true service convergence. Also announced today, emerging global carrier PowerNet Global Communications (PNG) has deployed the Axiowave XCR128 across their entire network.

Service providers have experienced increased traffic of 50-100% per year largely attributed to broader deployments of broadband and wireless services, while observing a 20%-27% price decline year over year that is accelerating further due to a lack of service differentiation and increased competition. In addition, small amounts of premium services such as VoIP and interactive/broadcast video mixed with best effort traffic continue to force service providers to unnecessarily build out and highly over-engineer their networks. This makes it more difficult to recoup capital expenditures, which adds up to a business paradox of increasing carrier investments coupled with plummeting service prices.

Axiowave has transformed this prevailing IP/MPLS business model challenge with the XCR128 by delivering an unprecedented 90%+ sustained wavelength utilization, 90+% of the total traffic can be premium services on the same egress link in the presence of oversubscribed data traffic, and such premium services are supported by the industry's first unparalleled ATM-grade SLAs for IP. These differentiators enable a highly profitable business model and give carriers a clear competitive edge.

PNG, a wholesale and retail carrier with headquarters in Cincinnati, OH and multiple Points-of-Presence (POPs) nationwide, selected Axiowave's XCR128 for deployment across its entire network, including PNG's wholly-owned subsidiary, Aleron Broadband Services, based in Chantilly, VA. PNG offers a host of services to residential and business customers including, voice, Internet access, transit, and other data services. As PNG, continues to grow their network and expand its service offering, they required a new core/metro routing solution that could integrate and carry services such as Toll-quality VoIP, ATM-grade IP-VPNs, Frame Relay grade IP-VPNs, and ATM-grade wholesale IP peering and transit services for both wireline and wireless service providers while simultaneously supporting best effort traffic over a single converged network.

"Axiowave is the first platform we have seen in many years that not only enhances our own business model, but also helps improve our customer's business. We selected Axiowave's XCR128 because it was the only platform that enables ATM grade performance and matching SLAs over IP networks without requiring wholesale changes. This enables us to support large percentage of premium-priced services over our existing IP network. In addition, our improved network efficiency coupled with reduction in wavelength leasing expenses gives us a substantial competitive advantage," said Bernie Stevens, President and CEO. "As we continue to expand our business to new regions and offer new innovative services to our subscribers, we were looking for a partner that could help accelerate our growth based on a solid business model. Axiowave has impressed us on all levels including a highly reliable modular software base. They have truly delivered a routing platform that will have an immediate and significant impact on our business as well as our customers'."

Raising the Bar for Core Routing

The XCR128 offers several unique features for ISPs, ILECs, IXCs, RBOCs, MSOs, and emerging service providers. These include:

-- Service Convergence: The XCR128 supports both premium and best

effort services in a converged network while preserving their

respective service characteristics. Furthermore, the

percentage of bandwidth for each type of service can be carved

out at will.

-- 90%+ Sustained Wavelength Utilization: Service providers can

now use fewer ports and DWDM transport equipment which in turn

results in unprecedented levels of network wide CapEx and OpEx

savings. These savings are even higher for those leasing

wavelengths.

-- 90%+ Premium Services on Same Egress: Profitable IP services

such as Toll quality VoIP, ATM-grade IP-VPNs, Frame

Relay-grade IP-VPNs, interactive/broadcast media, and

guaranteed broadband are supported on the same egress link

without adversely affecting each other in the presence of

background over-subscribed best effort traffic.

-- Premium IP services backed by ATM-Grade SLAs: enables Carriers

to offer highly predictable and extremely small latency and

jitter SLAs. This also simplifies the migration of existing

ATM and Frame Relay subscribers to IP while still preserving

the very same SLA characteristics.

-- Dynamic Bandwidth Sharing: Unused bandwidth from any service

running on the XCR128 can be dynamically distributed to other

services with burstable options.

"IP networks are about to undergo an maturation process as carriers evolve from best effort to business-class IP," said Kevin Mitchell, directing analyst of Infonetics Research. "Without a doubt, carriers are looking at building a next gen IP network capable of handling latency sensitive traffic from the legacy worlds of frame relay, ATM, and TDM voice. Axiowave is entering the market at the right time as these investments will take place over the next three years."

The XCR128 has a purpose-built, highly innovative switching and queuing architecture and a highly reliable and field proven software that supports OC192c/STM-64c, OC48c/STM16c, GbE, OC12/STM-4c, and OC3/STM-1c line cards; standard support for IP/MPLS protocols including BGPv4, OSPF, IS-IS and MPLS. The platform supports 32 OC192s/STM-64c and scales further to meet the most rigorous demands of the industry's largest carrier networks.

"We are pleased that our technology is enabling PNG to offer unmatched premium IP services, which are being received enthusiastically by their existing and new customers," said Mukesh Chatter, president and CEO of Axiowave Networks. "We feel we are uniquely addressing IP economics by transforming the business model. The XCR128 essentially serves as a bridge to move away from the lackluster IP economic model that carriers are facing, to a highly profitable business model for IP networks. PNG's deployment of Axiowave, as well as several trials we are engaged in with global service providers, is a testament to the problems we are specifically addressing for carriers."

About Axiowave Networks

Axiowave, headquartered in Marlborough, MA, is a global communications company focused on increasing revenue and profit margins for IXCs, ISPs, ILECs, MSOs, RBOCs and emerging service providers for wireline and wireless networks. Axiowave is focused on transforming the economics of public and private networks by delivering the industry's first next-generation core/metro routing platform that offers performance breakthroughs for wavelength utilization, new premium services supported by unparalleled service level agreements (SLAs), and true service convergence. The end result is significantly increased economic efficiency of existing networks while simultaneously providing compelling service differentiation. These differentiators are what separate Axiowave. For more information, visit www.axiowave.com.