Chunghwa Telecom Selects Caspian to Guarantee Quality on IP NGN Backbone; Caspian Flow-State QoS Serves as Foundation for Multimedia Quality Assurance.

SAN JOSE, Calif. -- Caspian, the leading provider of multimedia traffic control solutions for IP and multi-protocol label switching (MPLS) networks, today announced that Chunghwa Telecom Co. Ltd., (NYSE:CHT) the largest integrated telecommunications operator in Taiwan, is testing Caspian Media Controllers for deployment in its new all-IP network. Applications currently running over the Media Controllers at Chunghwa's Telecommunications Lab include video, voice over IP (VoIP), gaming, MPLS integration and IP virtual private networks (VPNs). The Caspian solution will provide IP flow control in the aggregation layer of Chunghwa's network for guaranteeing quality of service (QoS) levels and ensuring a rich multimedia experience for its large subscriber base.

Chunghwa Telecom offers a full suite of telecommunications services, with fixed, GSM and data networks throughout Taiwan and offshore islands. Chunghwa recently announced its intention to invest up to $4 billion dollars to upgrade its current network to an all-IP network infrastructure for its 20-plus million subscribers. With an emphasis on IP multimedia entertainment, Chunghwa selected Caspian Media Controllers to optimize its IP services while minimizing the cost associated with the additional demands for guaranteed bandwidth. Caspian's Flow-State QoS technology allows Chunghwa to better identify different types of multimedia traffic and enforce assigned QoS parameters across the network. As a result, the network performs more efficiently and minimizes the requirement to overprovision bandwidth, compared with alternative solutions.

"Caspian's innovative policy-based IP traffic management features open up numerous opportunities for NGN services in our new all-IP network," said Dr. Chu, project manager of the Triple-Play Team at Chunghwa's Telecommunications Lab. "In addition, we can now realize significant bandwidth -- and therefore cost -- savings while simultaneously ensuring a high quality experience for our customers."

"Chunghwa Telecom has taken a major step in accelerating the evolution of IP networking with its goal to invest in an all-IP network," said Brad Wurtz, Caspian president and chief executive officer. "We look forward to participating in Chunghwa's innovative process as it raises the bar for multimedia Internet communications."

About Chunghwa Telecom Co., Ltd.

Chunghwa Telecom is Taiwan's leading telecommunications operator. The formerly state-run carrier has both domestic and international telecom operations, offering local and long-distance phone services, as well as wireless cellular and paging, Internet access, and data transmission. In 1996, Chunghwa Telecom was created when Taiwan's telecom directorate was spun off from its transportation and communications ministry. The company inherited its customers, telecom networks, and workers in this separation as an initial step toward the privatization of Taiwan's telecom industry, which is open to foreign competition. A listing on the NYSE and a share sale in August 2005 reduced the government's stake to less than 50 percent.

About Caspian

Caspian is the leading supplier of multimedia traffic management solutions for service provider, large enterprise, and government networks. The Company's carrier-class Media Controllers leverage advanced Flow-State QoS technology to dynamically manage and control bandwidth in IP and MPLS networks. Caspian enables customers to enforce usage policies, enhance multimedia service quality, and prioritize applications. Caspian is headquartered in San Jose, California with offices in the United States, the United Kingdom, Japan, Korea, Singapore and China. For more information, visit Caspian on the Web at www.caspian.com.