Blackfoot Telecommunications Group Deploys Occam Networks' BLC 6000 in Move to Next-Gen Network.

Business Editors/High-Tech Writers

SANTA BARBARA, Calif.--(BUSINESS WIRE)--Feb. 23, 2004

Company Will Deliver Voice, Video and Data Services Over

IP/Gigabit Ethernet Network

Occam Networks Inc. (OTCBB:OCCM), a supplier of innovative Ethernet and IP-based loop carrier equipment to telecommunications companies worldwide, today announced that The Blackfoot Telecommunications Group has selected its BLC 6000 platform, a complete loop carrier system that uses Ethernet and Internet Protocol (IP) as core transport and service protocols, to deliver voice, video and high-speed data services to residential and business subscribers.

Blackfoot will deploy the BLC 6000s over a three-year period as they evolve their existing SONET network to an all IP services transport network.

"We began the drive to a next-generation, standards-based IP/Ethernet network two years ago with the ultimate goal of delivering every service over IP," said Dave Martin, Blackfoot network manager. "Rather than wait for a service requirement to force us to modernize, we decided to get ahead of the curve. It was clear that a network built using a native IP architecture would be simpler to build and manage, as well as more cost effective."

Blackfoot chose the Ethernet-based BLC 6000 over products from a variety of vendors because it met their IP/Ethernet requirements and could be integrated smoothly with the company's existing switches. The BLC 6000 enables Blackfoot to centralize interfaces and deploy services anywhere in its network. Another factor in the selection was the BLC platform's Ethernet Protection Switching (EPS), which will provide failover protection in certain geographic locations where Blackfoot does not have full fiber rings.

"The BLC has a very elegant and graceful architecture that will enable us to deliver new services and grow our subscriber base easily and cost-effectively," according to Martin. "An Ethernet/IP network is much cheaper to install and maintain and promises to help us maintain a competitive edge now and into the future."

Blackfoot plans to upgrade more than 20 remote sites over the next three years with BLC 6000. To date, the BLC platform has been installed in three locations and is delivering IP voice service to their subscribers.

"The installation of the first two BLC 6000s went flawlessly," Martin continued. "We installed them and turned up service in only 1.5 days, less than half the time it would have taken with our previous loop carriers."

During the initial phase of the BLC 6000 deployment, Blackfoot will deliver voice and broadband data to its residential and business subscribers. As the deployment progresses they plan to add streaming Internet video and/or TelcoTV to their service offerings.

"Blackfoot is known in the industry as a thought leader," said Russ Sharer, vice president of sales and marketing for Occam Networks. "We are pleased that such a progressive organization has selected our products to help them meet the challenges of growing competition over the next five years.

About The Blackfoot Telecommunications Group

Established in 1954 by residents of Missoula, Lake and Powell counties, Blackfoot Telephone Cooperative (Blackfoot) offers a full range of telecommunications services to its members. Named after the Blackfoot River for much of the territory it serves, Blackfoot offers services to 22 exchanges, covering 6,580 square miles within a six-county region in western Montana and one county in central Idaho. The Board of Trustees has nine members from throughout the area that Blackfoot services. The Blackfoot group of companies employs more than 180 Montanans and is headquartered in Missoula, MT.

About Occam Networks Inc.

Occam Networks Inc. develops and markets innovative Broadband Loop Carrier networking equipment that enables telephone companies to deliver voice, data and video services. Based on Ethernet and Internet Protocol (IP) technologies, Occam's equipment allows telecommunications service providers to profitably deliver traditional phone services, as well as advanced voice-over-IP, residential and business broadband, and digital television services through a single, all-packet access network. Occam is headquartered in Santa Barbara, Calif. Additional information can be found at www.occamnetworks.com.

Portions of this press release may contain forward-looking statements regarding future events or the future performance of Occam Networks. Forward-looking statements involve risks and uncertainties, which could cause actual results to differ materially from any future performance suggested in such statements. Rapidly changing technologies and market conditions may require changes to Occam's products. Occam does not undertake any obligation to publicly update any forward-looking statements as a result of new information, future events or otherwise. Please also refer to the company's most recent quarterly report on Form 10-Q, annual report on Form 10-K and other filings with the SEC. These filings contain and identify other important factors that could cause actual results to differ materially from those contained in any forward-looking statements.