Charles Industries Announces Supply Agreement with Eschelon Telecom, Inc. for Its EXchange Mux(R) II.

ROLLING MEADOWS, Ill. -- Charles Industries Ltd., a privately held, diversified manufacturing and high-technology company today announces that it has signed a strategic product supply agreement for its EXchange Mux II Advanced Multiplexer with Minneapolis headquartered Eschelon Telecom, Inc., a leading provider of integrated communications services to small and medium sized businesses in the western United States.

Under the terms of the agreement Eschelon Telecom will deploy EXchange Mux(R) II Advanced Multiplexers as the company's universal, cost-effective solution for M13 Multiplexing needs across its entire network.

"We believe the EXchange Mux(R) II product agreement with Charles Industries will enable us to better meet and serve our customer needs with a proven, cost effective solution for network wide deployment," stated Paul Hanser, Senior Director Network Engineering for Eschelon Telecom.

"With the recent acquisition of Advanced TelCom, the EXchange Mux II was an ideal choice for Eschelon given our need for both DS3 and STS-1 interfaces throughout existing and new properties. The programmability of the PM13+ module in particular supports either interface and enables us to reduce sparing and training costs by utilizing a single module throughout our network," Hanser said.

"We're very excited to work with a top-tier CLEC like Eschelon, using our EXchange Mux II platform to provide their current broadband services," Mark Huntzinger, Director, Access and Transmission Business Unit said. "Eschelon's use of the flexible EXchange Mux II platform will also permit them to migrate to other types of service if future needs arise," Huntzinger added.

The EXchange Mux II accepts multiple types of service modules and is the industry's smallest high-density M13 platform offering standard T1 and E1 interfaces. T1s or E1s can be multiplexed and transported as an OC-3 or STM-1. The platform allows customers to choose a number of multiplexing options, as indicated in the following list:

T1 to T3
         T1 to VT1.5 to STS-1
         E1 to G.747 to T3
         E1 to TU12 to TUG-2 to AU3
         E1 to VT2 to STS-1
         T3 to STS-1 to STS-3 to OC-3
         STS-1 to STS-3 to OC-3
         T3 to AU3 to STM-1
         AU3 to STM-1
         T3 to TUG-3 to AU4 to STM-1
         AU3 to TUG-3 to AU4 to STM-1

The EXchange Mux II features universal module slots and programmable modules, providing maximum multiplexing flexibility. Low power consumption and a small footprint make it ideal for collocation applications.

About Eschelon Telecom, Inc.

Eschelon Telecom, Inc. was founded in 1996 and is a leading facilities-based competitive communications services provider of voice and data services and business telephone systems in 19 markets in the western United States. Headquartered in Minneapolis, Minnesota, the company offers small and medium-sized businesses a comprehensive line of telecommunications and Internet products. Eschelon currently employs 1,134 telecommunications/Internet professionals, serves over 50,000 business customers and has approximately 397,000 access lines in service throughout its markets in Minnesota, Arizona, Utah, Washington, Oregon, Colorado, Nevada and California. For more information, please visit our web site at www.eschelon.com

About Charles Industries

Charles Industries, Ltd., is a privately held, diversified manufacturing and high-technology company. It is ISO 9000 and TL 9000 certified, and employs more than 600 individuals in its Rolling Meadows, Illinois, corporate headquarters and five U.S.-based manufacturing plants. Charles designs, manufactures and sells quality, innovative solutions worldwide through its Telecommunications, Marine and Industrial Groups. For further information, please visit http://www.charlesindustries.com or call [phone].