Bledsoe Telephone Taps Occam BLC 6000 to Renovate Entire Network; Southeastern Tenn.-Based Cooperative Set to Begin Three-Phased Network Upgrade to Deliver Triple Play Services over Single Network.

SANTA BARBARA, Calif. -- Occam Networks(R) Inc. (OTCBB: OCCM), a supplier of innovative Ethernet- and IP-based loop carrier equipment to telecommunications companies worldwide, today announced that Bledsoe Telephone Cooperative has selected the company's Occam BLC 6000(TM) System to renovate its entire network. The cooperative's goal is to deliver all its services, including video, over a single hybrid copper and fiber network. Currently, Bledsoe delivers voice and data over a hybrid copper and fiber network, and video over a fiber and coaxial CATV network.

Bledsoe will upgrade its network in three phases over the next two years with the ultimate goal of bringing all of its subscribers to within 10,000 feet of its remote cabinets. During the first phase, the cooperative will overlay and replace its existing remote sites to shorten the local loops and enabling it to provide subscribers with a full range of Triple Play services. Bledsoe will begin installing the Occam BLC 6000 in these remote cabinets at the end of February 2006 and expects to complete the installation in the third quarter of 2006.

"Although we tested a number of products, we chose the Occam BLC 6000 because it was the product with the most balanced feature set," said Greg Anderson, general manager of Bledsoe Telephone. "It was the easiest to install and maintain, the most cost-effective to deploy, offered the best price/performance ratio and provided the shortest learning curve for our technical people. We also found the Occam staff to be particularly easy to work with. They are responsive, knowledgeable and supportive."

In the second phase of deployment, Bledsoe will deploy the BLC 6000 in new remote sites to reach the remaining subscribers who are currently being served by its cable television service. The cooperative will complete the third phase of its network renovation by installing new BLC 6000-based remote cabinets in the remaining areas of its customer service area (CSA) where local loop lengths remain too long to deliver Triple Play services. When complete, the network renovation will enable Bledsoe to ultimately conclude its cable operation and to deliver an expanded service offering over a single network.

The cooperative made the decision to deliver IP Video over DSL in mid-2004. It began the process by building its own head end, completing it in late 2004. Bledsoe then began the process of choosing a broadband loop carrier to upgrade its access network. The cooperative narrowed the field to four manufacturers; conducted field trials of each product; and selected the Occam BLC 6000.

Anderson said, "We believe that IP is the future. We wanted a manufacturer who could deliver an IP-based platform today, not one that had it on its product road map. Occam had the right product, and the experience and expertise we needed."

"Independent telcos like Bledsoe continue to aggressively deploy Triple Play services," said Russ Sharer, vice president of sales and marketing for Occam. "Occam's unique and innovative approach to building a single IP-based access network for delivering these services provides telcos with a simple, affordable solution. The Occam solution enables telcos to be aggressive in delivering the services their subscribers want today while ensuring they will be able to deliver a broad array of new services in the future."

About Bledsoe Telephone Cooperative

Founded in 1953, Bledsoe Telephone Cooperative offers a full range of telecommunications services to residents and businesses of southeastern Tennessee. As a full-service telecommunication provider, the cooperative provides local and long distance, cellular, Internet, paging and data services, as well as cable television services and Direct TV. Bledsoe has 12,500 access lines and serves a five-county area that includes Bledsoe, Sequatchie and Van Buren counties. Bledsoe has its headquarters in Pikeville, Tenn. Visit www.bledsoe.net for more information.

About Occam Networks Inc.

Occam Networks Inc. develops and markets innovative Broadband Loop Carrier networking equipment that enable 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.

Occam Networks and Occam BLC 6000 are either registered trademarks or trademarks of Occam Networks Inc. in the United States and/or other countries.

All other trademarks mentioned are the property of their respective owners.