BTI Systems and FiberHome Networks Form Strategic Partnership to Deliver Differentiated Carrier Ethernet Access and Optical Networking Solutions.

BTI strengthens commitment to serving Asian market with addition of Shanghai office

OTTAWA -- BTI Systems, a global supplier of Intelligent Services Edge solutions for the delivery of high-bandwidth, multi-protocol services, today announced that it signed a development and supply agreement that covers joint research and development initiatives with Wuhan FiberHome Networks Co. Ltd. (FHN). To ensure close collaboration with FHN and to support its Asian customer and partners, BTI has established a new subsidiary in the People's Republic of China.

Headquartered in China's center of optical innovation, Wuhan Valley, FHN is at the heart of major new developments in optical data equipment, system design and manufacturing, and next generation optical Ethernet networking solutions. The partnership between BTI and FHN combines BTI's knowledge in carrier-grade packet optical networking solutions with FiberHome's design and manufacturing expertise in delivering Ethernet switching, IP routing, and HD video systems. This partnership allows both companies to harness their collective know-how and regional resources to offer the best communications solutions to the global marketplace.

"We have a unique opportunity to deliver best-in-class Carrier Ethernet and optical solutions that will set precedent for the way the industry delivers high-bandwidth video, data, and voice services," said Gregory Koss, Chairman and CEO, BTI Systems. "BTI and FHN create a powerful force in the Intelligent Services Edge and Carrier Ethernet Access solutions market with the cross-linking of skills, cultures, and strengths. We are very pleased to be partnering with one of China's leading telecom technology companies."

BTI and FHN will work closely at all levels of the partnership through feature definition, research and development, marketing, and customer engagements; collaborating closely to develop and deliver industry-leading technologies to facilitate growth and competitiveness in North America, Europe, and China. Through this partnership BTI will also benefit from access to FHN's parent company FiberHome Group and its network of subsidiaries.

"BTI and FHN bring unique skills to this partnership and together form a very strong alliance to offer more relevant products and solutions," said Dan Bang Rong, CEO and President, FiberHome Networks Co. Ltd. "Together we can bring a truly integrated and differentiated portfolio to the global market."

BTI has built a solid presence in China establishing a concrete base of Asian partners. The new subsidiary in the People's Republic of China, based in Shanghai, will allow BTI to maintain a close working relationship with all of its Asian partners as well as ensure a strong collaboration with FHN.

About FiberHome Group

FiberHome Technologies Group is the most outstanding product and solution provider in China in the field of information and communications. Emerging from the Wuhan Research Institute of Post and Telecommunications (WRI), the Group is carrying out WRI's technical advancements in optical communications and was the first organization to pull optical fiber in China. The market share of the Group's optical transmission systems and optical cable products are in the front rank of the domestic manufacturers and the occupancies of its optical active and passive devices in the home market. The Group currently focuses on three industries: fiber-optic communication, future public network represented by IP and wireless communication. With over 9,000 employees, it incorporates several subsidiaries in different forms including publicly listed, controlled, fully-owned and joint venture. For more information: http://www.fiberhomegroup.com/

About FiberHome Network Co. Ltd.

FiberHome Networks Company Limited (FHN), a subsidiary of FiberHome Technologies Group, provides a string of innovative IP-based telecommunication equipment, services and solutions to meet the multi-faceted demands of their customers. FiberHome Networks specializes in Carrier Ethernet, Optical Access, FTTx, WAN and MAN technologies. Its bundled offerings span the entire area of IP-based communication including routers, switches, and Carrier-Class Ethernet Multi-Service Platforms including CESP, CWDM, EOS, media converter, and IPTV systems. FHN supports the telecom, broadcast/ television, electricity, financial, education and government industries across China. Partnering with international companies and OEMs/ODMs, FHN has been able to bring its expertise to dozens of countries globally. For more information: www.fhn.com.cn

About BTI Systems

BTI Systems enables service providers and enterprises to respond rapidly and cost-effectively to the accelerating demand for bandwidth in today's gigabit world. BTI provides packet-enabled networking systems that expand the capacity of a single fiber up to 320Gbps. The BTI 7000 Series - the industry's first Packet Optical Edge system - provides wavelength and packet-level delivery of high capacity services such as video, storage, wired data, wireless data and voice, and media to the network edge. The compact 2U platform consolidates key transport capabilities including CWDM/DWDM, optical multiplexing, amplification, dispersion compensation, software-provisionable multiprotocol client service interfaces, and packet-switching. The combined BTI 7000 and 700 Series portfolios enable network operators to dramatically improve the economics of delivering today's services with fully-featured Ethernet and multi-service network solutions. For more information: visit www.btisystems.com