Calix Maintains #1 Spot in Hot BLC Market; Over 110 US ILECs Deploying the Calix C7 in Ultra-Broadband Loop Carrier Applications.

Business Editors/High-Tech Writers

PETALUMA, Calif.--(BUSINESS WIRE)--March 23, 2004

Recently released data from Infonetics Research show that Calix maintained the #1 market share position by a wide margin at the end of 2003. The Broadband Loop Carrier (BLC) market, which represents the latest generation of fully packet-based access network elements capable of driving both DSL and FTTP connections, grew at a blistering 724% on an annualized basis. This growth rate, which actually accelerated as the year progressed, dwarfs the growth rates for other broadband categories. Calix DSL port shipments, representing a 63% market share for the entire year, exceeded that of all other BLC equipment suppliers combined.

According to Teresa Morris, vice president of IOC sales at Calix, "The rate at which ILECs are adopting the Calix C7 platform is unprecedented. The platform's capacity, simplicity, and flexibility allow it to easily snap into existing telco networks, paving the way for advanced IP services over ultra-broadband networks."

With over 135,000 access lines in operation, SureWest Communications (Nasdaq:SURW) is among the list of wireline service providers deploying the Calix C7. "The Calix C7 platform provides us with additional capacity and flexibility to enhance our approach to transport, voice, and DSL applications," said Bill DeMuth, vice president and CTO, SureWest.

North Carolina-based Randolph Telephone is yet another example of forward-looking service providers deploying the Calix C7 ultra-broadband loop carrier to enable a host of high-value services.

"The unique ability of the Calix C7 to deliver broadband services -- as well as all of our existing voice and data services -- in scale gives us the ability to respond very quickly to customer demands," said Frankie Cagle, central office manager at Randolph.

BLCs, especially ultra-broadband loop carriers (UBLCs), are packet-based access network platforms able to simultaneously drive fiber (FTTP) and copper (DSL) broadband subscriber connections. The BLC market share study conducted by Infonetics Research shows North American DSL port shipment growing at a 529% annual pace, voice ports at 672%, and revenue at 724%. This contrasts with NG-DLC growth rates of 59% for DSL ports, 33% for voice ports, and 39% for revenue. Central office DSLAM port shipments grew at a 55% annual rate while revenue declined 3%. During calendar year 2003, Calix accounted for 63% of BLC DSL port shipments in North America and 52% of voice port shipments.

About Calix

Calix is a leading supplier of telecommunications solutions designed to simplify all aspects of voice, data, and video service delivery to business and residential subscribers for local exchange carriers of all sizes. Providing massive optical and metallic density, unprecedented system capacity and functional headroom, advanced management and provisioning capabilities, and complete service flexibility, the packet-based Calix C7 platform has been deployed in over 110 service provider networks throughout North America. More information about Calix can be found at www.calix.com.