Canby Telephone Association Uses Calix C7 to Go Live With IPTV; Calix C7 Enables Oregon-Based Telephone Cooperative to Offer IPTV Services to Its Existing Subscriber Base.

SAN DIEGO -- Calix announced today that Canby Telephone Association (CTA) (www.CanbyTel.com), a telephone cooperative based in Oregon, has completed extensive IPTV field trials and has now moved into full production. The Calix C7 enables CTA to deliver 150 channels of broadcast video entertainment, along with local and long-distance voice and high-speed Internet access. Canby Telephone now offers a triple play bundle (telephone, television, and Internet) that the local cable competitor is unable to match. Furthermore, by integrating features such as caller ID displayed on the television and video on demand, CTA offers a fundamentally more compelling entertainment service.

"Advances in digital compression technology, coupled with the ease of deploying video over our existing copper network using the Calix C7, allow us to offer better services at a lower cost than the competitive offerings," stated Keith Galitz, President of Canby Telephone Association. "Calix and its proven Calix Compatible solution partners in particular helped simplify the delivery of video services."

By employing ADSL2+ technology, CTA is able to deliver two simultaneous video streams to subscriber households in addition to high-speed Internet access and voice. The Calix C7 multiservice access platform also allows CTA to offer the same services using fiber to the premises (FTTP). As important, the dynamic, interactive nature of IPTV, coupled with the exceedingly high capacity of the Calix C7, which has 200 Gbps of backplane capacity, means that there is no practical limit to the breadth of content that CTA can offer. This is in sharp contrast with the competing cable system in which access capacity constraints limit the channel lineup.

According to Calix video solutions marketing director Geoff Burke, "CTA typifies what we see at dozens of our customers that are currently scaling deployment of IPTV services: innovative service bundles, rapid time to market, and superior economics. Collectively, these characteristics put incumbent wireline carriers in a very strong competitive position."

Century-old Canby Telephone, located 20 miles south of Portland, serves over 11,000 access lines. CTA is the first service provider in the state to offer IPTV services. More information on Canby's IPTV offering can be found at www.canbytv.com.

About Calix

Calix is a leading supplier of packet-based access solutions that enable carriers to deliver information, communication, and entertainment services to business and residential subscribers. Calix solutions help carriers transform their networks to support IP services with maximum flexibility, providing seamless support for traditional and next-generation services in a common platform. Calix has deployed its solutions in over 190 service provider networks throughout North America. More information about Calix can be found at www.calix.com.

This press release contains 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 press 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.