Facilities-based CLEC, REI Communications Selects Pannaway Technologies to Deliver Triple Play Broadband Services in Central Florida.

PORTSMOUTH, N.H. -- Pannaway's Telco-grade, IP Packet System will Enable High-Quality, Reliable Triple Play Services for Rural Customers

Pannaway Technologies, Inc., designers and developers of converged, telco-grade broadband voice, video and data platforms, today announced a deal with REI Communications, a facilities-based CLEC in central Florida, to deliver high quality VoIP, bi-directional high-speed Internet and crystal clear all digital television services over their award-winning Service Convergence Network (SCN(TM)). REI Communications will leverage Pannaway's SCN to become the first local provider to deliver a complete triple play of converged voice, video and data services. After a comprehensive evaluation of leading access providers, REI made the decision to partner with Pannaway based on their unprecedented level of service and support coupled with their ability to deliver the industry's only true Primary Line VoIP(SM) service that enables Emergency 911 reliability in a VoIP environment.

Located in Bartow, Florida, but reaching into neighboring Fort Mead and other Central Florida-based communities, REI Communications will soon make available to approximately 200,000 residents cutting-edge, converged broadband services that incumbent competitors have been slow to offer. REI recognized the opportunity to leverage a city-wide, fiber optic infrastructure used to connect local public schools for the delivery of triple play broadband services to residential and small-business subscribers. Pannaway's flexible solution will enable REI to move very quickly, delivering broadband services to its first customers before the end of 2005.

"We chose Pannaway because we were looking for a broadband partner, and not just a product vendor," said Carl Burgess, CEO of REI Communications. "More so than any of the other vendors that we evaluated, Pannaway's services and support team demonstrated the ability to do what it will take to help us achieve our goal - offer affordable, reliable broadband services to our customers. With the local cable and telecom providers lagging behind in their ability to offer desirable broadband services, we need to step in quickly to fill that gap. Pannaway understands this urgency and is working around the clock to deliver a high-quality solution to meet our subscribers' needs."

Leveraging Pannaway's SCN, REI will be the only carrier to offer truly converged broadband services to local subscribers. For the first time, Central Florida residents will be able to realize the benefits of converged, high-quality digital television and reliable SIP-based VoIP services coupled with local around the clock service and support. While incumbent carriers have only recently begun offering high-speed Internet, REI is leveraging Pannaway's solution to become the area's only provider to bundle this feature with voice and video offerings. REI customers will enjoy multiple services, one bill and local service and support that exceeds anything offered by current providers.

Pannaway's SCN is the industry's only next-generation IP access platform to deliver true Primary Line VoIP for lifeline calling. Being located near Florida's Gulf Coast, REI needs the ability to provide Emergency 911 calling even if power goes out within their respective service areas. Pannaway's ability to deliver this capability was a driving factor behind REI's decision to select their SCN solution. Based on patent-pending technology, Pannaway's VoIP system provides automatic failover to an always-available remotely powered back-up Plain Old Telephone System (POTS) phone line that runs transparently to the subscriber ensuring that E911 service is always available.

"We are thrilled to add REI Communications to our growing client roster," said David Meyer, executive vice president of sales at Pannaway. "REI chose Pannaway based on our ability to deliver an extraordinarily high level of personalized service and support and we are 100% committed to surpassing their expectations in this area."

About Pannaway Technologies

Pannaway provides telco-grade, converged voice, video and data solutions to telecom service providers and emerging Triple Play services companies. Pannaway's multi-award winning, RUS listed and patent-pending IP technologies enable telecom providers worldwide to deliver profitable broadband services to homes and businesses at a fraction of their historical costs. Pannaway also delivers the industry's first end-to-end telco-grade VoIP solution with integrated Primary Line service for lifeline POTS support. The privately held company is headquartered in Portsmouth, New Hampshire, and has been building solutions and service/support programs to fit the specific needs of rural telcos since 2002.

For more information, please visit www.pannaway.com.