DIATEM Appoints Marco Pagani as Chairman.

OTTAWA -- DIATEM Networks Inc., the leader in carrier-Ethernet management systems, announced today that Marco Pagani will serve in the capacity of Chairman of the Board of Directors.

Marco is a seasoned global telecommunications industry professional with a long track record of business success. He currently provides strategic telecom advisory services to telecommunications firms and the Venture Capital community, including holding several board positions. During an 18 year tenure at Nortel Networks, Marco developed and led many successful global business divisions, with his most recent position being President - Optical Ethernet Networks and Storage Solutions. He previously held the positions of President - Metro Optical, President - Core Networks and General Manager - Carrier Data Networks, also at Nortel.

"Marco is an industry visionary with impeccable business credentials, completely relevant to DIATEM's business," said Kevin Vachon, DIATEM CEO. "We continue to assemble an industry-leading team and we are excited to have Marco assume this important and active role," added Vachon.

"For years now, I have been a huge advocate of Ethernet technology as the next major innovation in metro network technologies and services," said Pagani. "Service Providers globally are expecting carrier-class service quality from Ethernet technologies to support business connectivity and triple play service delivery. With it's advanced Ethernet service management software system, DIATEM has uniquely positioned itself as a key missing ingredient of carrier-Ethernet, a capability that the equipment vendors and mainstream OSS companies do not have," added Pagani.

"DIATEM has an excellent business plan, great technology and a strong, execution-focused team," said Dr. Mark Janoska, General Partner of VenGrowth Capital Partners, a DIATEM board member. "Marco will make a very significant contribution to the success of the Company and I look forward to working with him," added Janoska.

About DIATEM

DIATEM Networks Inc. is the Ethernet management systems leader. DIATEM's Ethernet ServiceController (ESC), enables service providers to efficiently provision, measure and manage carrier-class Ethernet networks and services, over multi-vendor environments. With ESC, service providers expand revenues by offering highly differentiated Business Connectivity and Residential Triple Play services, and save costs by efficiently configuring and managing their wireline and wireless infrastructure for service delivery. With integrated Ethernet Traffic Engineering and sophisticated Admission Control, DIATEM addresses a critical operational quality barrier, delivering connection performance guarantees across shared packet networks.