Catena Networks' ``Potentially Disruptive Solution'' Will Help Drive Growth of Broadband Loop Carrier Market, According to Yankee Group.

Business Editors/High-Tech Writers

REDWOOD SHORES, Calif.--(BUSINESS WIRE)--Sept. 18, 2002

Lead Analyst Says Catena "Has and Will Win

Business from the Major RBOCs"

Catena Networks' highly integrated POTS+DSL silicon technology is a "potentially disruptive solution" that will help drive the growth of the Broadband Loop Carrier market, according to the Yankee Group, an industry research firm based in Boston.

In its August report on the evolution of the Digital Loop Carrier market, the Yankee Group said Catena's silicon technology has enabled the company to develop broadband access systems that offer low startup and lifecycle costs, minimize power consumption and provide high port densities.

These integrated broadband access systems, according to the Yankee Group, will make it easier for carriers to deploy broadband services from remote terminals. "Catena has and will win business from the major RBOCs," said Matt Davis, director of Broadband Access Technologies for the Yankee Group and author of the August report, entitled `Thinking Outside the Box'. "Catena is poised to challenge the larger, more established vendors in this growing market."

The Yankee Group forecasts that the BLC market will grow to $1.6 billion in 2003. According to the report, this "will be the most important new phase of growth for broadband service providers since the initial Central Office buildout in 1999." Further, the report said, it "will represent the most significant potential market for broadband hardware and software vendors over the next five years."

Catena's solutions, which include the CNX-5 Broadband DSL System and the CN1000 Broadband Loop Carrier, could play a key part in that growth.

The CNX-5 Broadband DSL System is a card-for-card upgrade solution for Lucent SLC-5(R) Digital Loop Carriers. It provides two lines of integrated POTS+DSL and replaces cards that provide two lines of POTS only. The CNX-5 gives carriers a simple, cost-effective and scalable way to broadband-enable their installed base of SLC-5's, without reducing the number of available POTS lines.

The CN1000 Broadband Loop Carrier is a packet-based broadband access system designed for the cost-effective delivery of voice, data and video services. It is a high-density system that provides POTS+DSL on every line, enables no-truck-roll remote provisioning and management, and packetizes voice traffic on a line-by-line basis. The CN1000 integrates the functions of a DSLAM, Digital Loop Carrier and Media Gateway.

"We are pleased that the Yankee Group recognizes the breakthrough nature of our broadband access systems, which are based on the most highly integrated POTS+DSL silicon technology in the industry," said Jim Hjartarson, president and chief executive officer of Catena Networks. "We believe these systems will help carriers deploy broadband services to all subscribers -- including those served from remote terminals -- more quickly, cost-effectively and profitably than ever before."

About Catena Networks

Catena Networks, Inc. builds innovative broadband access solutions that are designed to enable facilities-based telecommunications carriers to achieve mass-market deployment of plain old telephone service (POTS), and broadband digital subscriber line service (DSL), on a single access line, and to facilitate access network convergence. Headquartered in Redwood Shores, Calif., the company operates world-class research and development facilities in Ottawa, Ontario, Canada and has more than 300 employees across North America. Founded in 1998, Catena is a privately held company that has secured U.S. $192 million in venture financing. For more information, please access www.catena.com.

Note to Editors: Catena, Catena Networks, and the Catena Networks logo are trademarks of Catena Networks, Inc. All other trademarks or service marks mentioned in this document are the property of their respective owners.