Copel Selects P-Cube for IP Service Control Platform; Enables Carrier to Optimize Application Traffic and Expand Service Offerings.

SUNNYVALE, Calif. -- P-Cube Inc., the first to provide programmable IP service control platforms for wireline and mobile network operators, today announced that Copel Telecommunications, a subsidiary of Companhia Paranaense de Energia (COPEL) (NYSE:ELP), has selected P-Cube's Service Control Platform and Engage solution to provide application-level traffic optimization and improve overall service to its subscribers via the delivery of new premium multimedia services. Copel Telecommunications supplies Copel's own telecommunications needs as well as carrier services to such operators as Embratel (NYSE:EMT), Global Telecom GVT, Claro, VIVO, Timsul, Impsat Fiber Networks Inc. (OTC:IMFN) and Sercomtel. The contract with Copel Telecommunications has been delivered by P-Cube's strategic partner, Damovo of Brazil, a global service company providing channel distribution, integration and support services.

With the selection of P-Cube, Copel is responding to the Parana State government's digital inclusion initiative by preparing for advanced IP-based service offerings over its new MPLS/Gigabit Ethernet network. One of the largest electrical power companies in Brazil, Copel's telecommunications services will include voice-over-IP, Internet access, and other types of multimedia services that will be delivered to corporate clients, schools, colleges, and banks statewide.

"P-Cube's application-aware service control technology will provide us with a flexible and extensible solution that enables us to cost-effectively scale our network and provide the best user experience to our subscribers," said Carlos Renato de Oliveira Fontes, Copel Telecommunications' assistant to the chief executive officer. "Utilizing P-Cube's stateful deep packet inspection capability ensures we can accurately classify network traffic and enable new billing models as we expand our IP offerings."

P-Cube's Service Control technology is comprised of a programmable network element that overcomes the limitations inherent in today's IP service delivery infrastructure by adding a layer of intelligence and establishing an application-aware service control point that enables carriers to identify, classify, guarantee performance and charge for content-based services on wireline and mobile networks. The purpose-built Service Control Platform from P-Cube ensures carriers like Copel Telecommunications maximize the yield of its existing network investment by implementing traffic-line intelligence that addresses new standards, protocols, charging models and content-type classification in real-time. The solution enables operators to extend their reach into high-margin, high-value service delivery by profitably offering an array of data services customized to individual subscriber's needs.

"We are pleased to be an integral part of Copel's current efforts to deploy a new state-of-the-art network for the delivery of premium IP services," said Yuval Shahar, president and chief executive officer of P-Cube. "Copel understands that service control technology allows providers to not only optimize application traffic but also identify and charge for a variety of IP services running on a common network pipeline which efficiently leverages infrastructure and expands a carrier's profits."

About the Companies

Damovo

Damovo is a Global Services company delivering world-class corporate communications. Through consultancy, design, implementation and management, Damovo delivers advanced solutions in the following areas: Data and Converged Networks, Mobile Solutions, Voice Enabled Solutions, ERM (Enterprise Relationship Management) and Managed Services. With a unique legacy in communications, Damovo offers knowledge allied to expertise, with a culture of devotion, flexibility and agility. Damovo has an international client list of over 26,000 organizations and employs over 2,200 staff, acting through its offices in 20 countries worldwide across Europe, Latin America, Australia and Asia. Principal territories for Damovo are Australia, Brazil, Germany, Italy and the UK. In addition, Damovo has operations in Argentina, Belgium, The Czech Republic, Hong Kong, Ireland, Mexico, Poland, Portugal, Sweden, Switzerland, Venezuela, and Slovakia.

With headquarters in Sao Paulo, Damovo Brazil has six branches -- Porto Alegre, Curitiba, Campinas, Rio de Janeiro and Brasilia. Regional distributors are located in the capitals, assuring wide national coverage. For more information, visit Damovo at www.damovo.com.

About P-Cube Inc.

P-Cube is speeding the evolution of networks from generic transport mechanisms to platforms for offering higher-value, higher-margin services. Programmable, scalable and purpose-built for the communications sector, P-Cube's technology helps ensure profitability for DSL, cable and mobile IP service providers as they provision for the delivery of today's and tomorrow's content-based services. The company's Service Control Platform adds intelligence, stateful deep packet inspection and wire-speed flow-based analysis to existing network infrastructure and enables carriers to identify and charge for dissimilar content applications while simultaneously managing different applications' performance requirements. P-Cube is involved with today's largest service control deployments. Its customer base is comprised of over 40 companies worldwide including: SingTel, Telenor, @NetHome, KT, 3 Italy (Hutchison), Plala Networks (NTT) and Interoute.

Founded in 1999, P-Cube is headquartered in Sunnyvale, California; research and design facilities are located in Israel, and regional sales offices are located in the United States, Europe, and Asia. For more information, please visit http://www.p-cube.com or e-mail: [e-mail].