Catena Networks Strengthens Position as Leading Provider of End-to-End Access Solutions.

Business Editors/High-Tech Writers

RESEARCH TRIANGE PARK, N.C.--(BUSINESS WIRE)--Nov. 12, 2003

Major Carriers Have Deployed 4,000 Catena Systems; Breakthrough

Year Helps Company Achieve Profitability

Catena Networks today announced that it has achieved a number of major milestones in calendar 2003 that have further strengthened its position as a leading provider of complete, end-to-end access network solutions. Three Regional Bell Operating Companies (RBOCs), major Independent Operating Companies (IOCs) and Competitive Local Exchange Carriers (CLECs) have now deployed more than 4,000 of Catena's integrated broadband access solutions -- including the CNX-5 Broadband DSL System and the CN1000 Broadband Loop Carrier (BLC).

This customer traction has helped the company achieve profitability and sustain quarter-over-quarter revenue growth for the past nine quarters.

"Catena has distinguished itself as a new player in the very competitive broadband access market, as it has penetrated major RBOC accounts, consistently grown revenues and developed a product set that helps carriers minimize costs and maximize deployment flexibility," said Michael Howard, principal analyst and co-founder at Infonetics Research, an industry research firm based in San Jose, Calif. According to Jim Hjartarson, president & CEO of Catena Networks, "We grew the business exponentially this year. Catena established solid traction among the RBOCs and major IOCs and delivered solutions that enable our customers to profitably deliver voice, data and video services over any mix of copper and fiber access technologies."

In addition to seeing its systems deployed in volume, and recording record revenues, Catena also achieved these major milestones in calendar 2003:

-- Introduced its CN1000FX suite of Fiber-to-the-X solutions, which enable carriers to drive fiber deeper into their networks and offer new broadband services such as video. The CN1000FX solution is unique because it addresses Fiber-to-the-Premises (FTTP), Fiber-to-the-Curb (FTTC) and copper distribution requirements simultaneously, on a single platform, helping carriers mitigate considerable risk (future-proof their networks) by maximizing deployment flexibility. Carriers can cost-effectively address multiple deployment scenarios -- including new-build and neighborhood-overlay opportunities -- with the same, flexible access system.

-- Partnered with the industry's leading video hardware, middleware and software providers to deliver comprehensive, end-to-end Triple Play solutions. These solutions, based on Catena's CN1000 Broadband Loop Carrier, reduce service deployment costs and help carriers extract the full value of their networks.

Catena's CN1000 BLC is fully interoperable with an extensive list of video partner equipment, including video headend equipment from Optibase, Tandberg and VideoTele.com, a division of Tut Systems; video-on-demand equipment from Entone and Kasenna; video middleware and software from Myrio; and video set-top boxes from Amino Communications, Entone, Fujitsu Siemens Computers, i3 micro technology, Kreatel, Pace and Thomson. Catena's CN1000 BLC sets the benchmark in automated service delivery, enabling carriers to software-provision voice, data and video services, without requiring new linecards or hardware modifications. In addition, carriers deploying the CN1000 BLC, with its hardware-based IP multicast functionality, along with Catena partner middleware, can more efficiently utilize bandwidth on their video-transport networks and provide their subscribers with the fastest channel changing experience in the industry.

-- Enabled IOCs such as Pineville Telephone Company and FCI Broadband, a Division of Futureway Communications, to quickly deploy broadband services in greenfield neighborhoods -- and beat their competitors to the punch. By deploying Catena's CN1000 BLC, the two carriers accelerated their time to market and were able to address a variety of different applications with the same access system. In Pineville's case, the carrier was able to install a Catena CN1000 BLC and begin provisioning POTS and DSL services to subscribers -- within a day of the system's arrival. "With the CN1000, we can remotely provision DSL to our subscribers without dispatching a technician," said Pineville's Plant Manager Gary Creech. "It also gives us the flexibility to easily migrate our voice services to a packet infrastructure, when the time is right."

About Catena Networks

Catena Networks' integrated broadband access solutions enable service providers to profitably deliver voice, data and video services and smoothly migrate to packet-based networks. These solutions include the Catena CNX-5 Broadband DSL System, the Catena CN1000 Broadband Loop Carrier, and the Catena CN1000FX Fiber-to-the-X solution suite.

For more information, please access www.catena.com.

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. (C) 2003 Catena Networks, Inc. All rights reserved.