Calix 700GX Optical Network Terminals Deliver Active Ethernet, GPON, and BPON in Same Device for Optimal FTTP Deployment Flexibility.

Industry-First Auto-Detect Capability in ONTs Matches Best Technology to the Application without Equipment Change or Truck Roll

PETALUMA, Calif. -- Calix, the worldwide leader in overall gigabit passive optical network (GPON) equipment revenue (Dell'Oro Group, August 2008), today continued its access innovation by announcing the availability of an industry first -- the 700GX family of optical network terminals (ONT), which support Active Ethernet standards in addition to the ITU-T passive optical networking (GPON and BPON) standards. The 700GX ONT family employs Calix' unique auto-detect technology, first introduced to the industry's broadest portfolio of ONTs in 2007 to enable Calix customers to deploy BPON or GPON over the same ONT. Calix has now extended this technology to add Active Ethernet support, providing a widely deployable, standards-based solution that offers unmatched flexibility and investment protection.

[Editor's note: See also today's release entitled, "New Calix Extended Reach GPON Technology Increases Services Reach by 50 Percent"]

Increasingly, GPON and Active Ethernet are being viewed as complementary technologies based on the application. GPON is ideal for mass residential and small business deployments, while Active Ethernet is sometimes preferred for larger businesses that demand dedicated fiber access. Calix innovation gives service providers the flexibility to implement either of these two technologies on a single ONT. The result: a Unified Access Infrastructure that enables service providers to benefit from the ability to deliver and manage both PON and Active Ethernet technologies as one network rather than as separate networks.

"PON and Active Ethernet have falsely been cast as competitive technologies when, in fact, they are complementary," said David Russell, solutions marketing director, Calix. "With the 700GX ONT, Calix is the first company to allow service providers an operationally and capitally efficient way to leverage the strengths of both technologies out of the same ONT. As with the rest of the Calix Unified Access Infrastructure, service providers can choose the right technology to fit their needs today, while maintaining the flexibility to adapt to new demands in the future."

The new Calix 700GX ONT provides many benefits:

* Calix' auto-detect technology allows providers to remotely provision and convert any subscriber from one technology standard to another; no expensive truck rolls or upgrades are required at the customer premises.

* Calix customers can install the 700GX ONT in conjunction with the Calix C7, E5-400, and F5 platforms already deployed in their networks, as well as with all standards-based GE switches or routers.

* Those business customers that demand dedicated fiber access can be serviced using the Active Ethernet mode on the 700GX.

* When in Active Ethernet mode, the 700GX can reach subscribers up to 40 km distant, enabling service to hard-to-reach customers.

* Service providers need to inventory only one ONT for all common standards: Active Ethernet, BPON, and GPON.

"We are a big believer in GPON for most residential and business services, but we are seeing increasing demand and opportunity for delivering dedicated, symmetrical Ethernet services to our business customers," said Zack Odell, director of operations at SCTelecom in Medicine Lodge, Kansas. "With the 700GX ONT, we have the flexibility to deploy and manage one network, independent of the service or technology demanded. Not only does this greatly simplify our network and inventory management, but also the integrated Active Ethernet support saves us thousands of dollars per business site relative to how we historically had to implement dedicated, symmetrical, fiber-based Ethernet services."

"GPON is becoming the dominant FTTP technology in North America, but there are a number of applications where Active Ethernet is a more appropriate option," said Vince Vittore, program manager for enabling technologies at Yankee Group. "This poses a dilemma for service providers that want to standardize access technologies across their networks and drive operational efficiencies, yet are under competitive pressure to meet growing service demands. As fiber-rich infrastructures become more prevalent across competitive boundaries, operational benefits like the flexibility to support both Active Ethernet and GPON technologies in one ONT provide a competitive advantage."

Availability

The Calix 700GX ONTs are available for order now.

About Calix

Calix is the largest telecom equipment supplier focused solely on access solutions for broadband service delivery. Service providers deploy Calix access systems to enable a rich set of information, communication, and entertainment services and to expand their revenue base beyond connectivity. Calix access innovation helps service providers transform their networks from circuit to packet, narrowband to broadband, and copper to fiber. Calix has deployed millions of ports and tens of thousands of systems into hundreds of service provider networks throughout North America. For more information, visit the Calix website at www.calix.com.

This press release may contain forward-looking statements that are based upon management's current expectations and are inherently uncertain. Forward-looking statements are based upon information available to us as of the date of this release and we assume no obligation to revise or update any such forward-looking statement to reflect any event or circumstance after the date of this release. Actual results and the timing of events could differ materially from current expectations.