Calix Expands Canadian Presence with Telephone Guevremont, Maskatel, and Telephone Drummond.

ILEC and CLEC Deployments Include FTTP and ADSL2+; Will Lead to IPTV 

PETALUMA, Calif. -- Calix, the largest telecom solution supplier focused solely on access, today announced a substantial broadening of its presence in Canada with its selection by Telephone Guevremont, a Quebec-based ILEC, and by Maskatel and Telephone Drummond, CLEC affiliates of Telephone Guevremont. The project will utilize Calix C7 multiservice access platforms (MSAPs) to extend new fiber transport facilities to Drummondville, Quebec, overbuilding the current operator. From there, the Calix C7 will deliver voice, high-speed internet access, and eventually IPTV services over short 1.5 Km loops using ADSL2+ and VDSL2 technology. Greenfield locations will be built out using 2.4 Gbps gigabit passive optical network (GPON) fiber to the premises (FTTP) facilities.

According to Maskatel president Donald Dupuis, "Calix offers us tremendous flexibility in the upgrade of our access network--we are able to employ the same solutions for fiber and copper, for inside and outside plant, and for the full variety of business and residential services we offer now and plan for in the future."

Claude Beauregard, president of Telephone Drummond, added, "It is vitally important that our new access infrastructure redefine broadband, operating at speeds tens of megabits per second higher than conventional, first-generation broadband. With ADSL2+, VDSL2, GPON, and Gigabit Ethernet, Calix gives us the bandwidth headroom we need to support demanding IP-based services such as IPTV and very high speed internet access."

The three Quebec-based service providers will make use of a broad range of Calix access solutions, including the Calix C7 MSAP, the Calix Management System (CMS), and, for FTTP builds, the Calix 700-Series optical network terminals (ONTs). Plans call for the delivery of MPEG4-based IPTV services beginning in 2008.

Michael Aiton, Canadian country manager for Calix, views Telephone Guevremont as a trend-setter both in terms of technology and services, "There is no question that Telephone Guevremont, Maskatel, and now Telephone Drummond, embody some of the most innovative technical thinking among North American service providers. A combination of in-region ILEC and out-of-region CLEC operations using the same platform will yield operational efficiencies as well."

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 shareholder 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.

About Maskatel, Telephone Drummond, and Telephone Guevremont

Based in Quebec Canada, Maskatel is registered as a Competitive Local Exchange Carrier (CLEC) in Canada. Maskatel has been serving the St-Hyacinthe area east of Montreal since 1996. Since then, it has steadily expanded to serve other localities in Quebec and currently serves about 25,000 customers. Telephone Drummond is registered as a CLEC and will start its operations in 2007 to serve the Drummondville area. Telephone Guevremont is registered as a Small ILEC and offers service covering the Ste-Rosalie area (now part of St-Hyacinthe) in Quebec.