KPU Telecommunications Delivers Converged Broadband Services to a Community of 14,000 Rural Subscribers over Pannaway's Service Convergence Network (SCN(TM)); Alaska's First City ILEC Transforms ATM and TDM Network with IP Ethernet.

PORTSMOUTH, N.H. -- Pannaway Technologies, Inc., designers, developers and providers of next-generation, converged broadband systems to telecommunications companies, today announced that KPU Telecommunications in Ketchikan, Alaska, has selected its multi award-winning IP Ethernet-based, Service Convergence Network (SCN(TM)) platform to deliver new Triple Play broadband services to a community of 14,000 residential and business subscribers. KPU Telecommunications, a locally owned and operated division of City of Ketchikan / Ketchikan Public Utilities, is currently delivering Primary Line VoIP(SM) with Lifeline calling and E 911 services, digital IP TV and ADSL 2+ Internet to its rural subscribers.

KPU is migrating its entire legacy ATM and DMS-100 phone switching networks to a single high-performance IP-Ethernet and SIP-based network capable of supporting current and emerging bandwidth intensive applications including HDTV and VoD. For this significant upgrade, the 70 year old ILEC will use Pannaway's Broadband Access Switch (BAS(TM)) which is a highly scaleable IP-BLC (broadband loop carrier) that supports high-bandwidth voice, video and data services on every port. The BAS also enables the ILEC to deliver SIP-based Primary Line VoIP(SM) which ensures that Lifeline calling and E 911 services are always available to rural subscribers without the need for battery back up or multiple phone numbers to the home. Additional benefits of Pannaway's Primary Line VoIP(SM) technology include extended rate/reach capability which has allowed KPU to expand its broadband Triple Play serving area by more than 15%, reducing the number of remote terminals that need to be deployed. Video corruption due to Ring Trip (off hook) events has also been eliminated through the use of this primary line technology. KPU is also using Pannaway's intelligent Residential Gateway NID (RGN(TM)) at each customer premise and its Broadband Access Manager (BAM(TM)) to simplify the installation and ongoing maintenance of broadband equipment and services.

"The decision to transform our TDM and ATM-based networks to IP-Ethernet with SIP simply made sense", said Van Abbott, Division Manager for KPU Telecommunications. "These advanced technologies are clearly easier to deploy and manage, more cost-effective in every aspect and provide much greater flexibility which will enable us to scale our new network to support the advanced services and features that our subscribers will demand."

KPU conducted a comprehensive and lengthy evaluation of all the major IP access providers and selected the Pannaway system based on overall performance, SIP-based VoIP with E 911 and Lifeline calling, automated remote broadband management and unprecedented service and support.

"We are very pleased with our decision to partner with Pannaway", said Abbott. "Their IP technology expertise, network design experience and on-site support programs have made our network transformation as seamless as it can be."

Kevin Brown, Vice President of Marketing at Pannaway adds, "For progressive ILECs like KPU, delivering high-quality IP video, extending rate/reach and guaranteeing E 911 services to their rural subscribers are paramount. "Our innovative Primary Line VoIP(SM) technology was uniquely designed to address all of these issues and we're pleased to see our development efforts translate to a successful Triple Play rollout for KPU."

About KPU Telecommunications

KPU Telecommunications is dedicated to meeting the growing communication needs of the Ketchikan community by developing efficient, cost effective new services to support the ever-changing requirements of the residents and businesses. In addition to basic telephone service, KPU Telecommunications offers Enhanced Calling Features including: Custom Calling, Caller ID, Call Waiting, Call Forwarding; Voice Mail and CLASS to name a few. They also provide communications services such as business systems, special circuits, wide area optical Ethernet LAN, dial-up Internet service, as well as high speed DSL Internet services. KPU Telecommunications launched KPU CommVision Digital TV services February 1, 2006. Video on Demand (VOD) will come on line mid March, 2006 and VOIP Long Distance service is currently under test.

About Pannaway Technologies

Pannaway provides customer-proven, IP-Ethernet and SIP-based broadband access solutions that enable telecommunications service providers to offer new Triple Play services to their rural subscribers. Using Pannaway's Service Convergence Network (SCN(TM)) which consists of access, premise, transport and broadband management capabilities, telecom providers can easily transform their existing TDM and ATM networks to support emerging bandwidth intensive services for years to come. Pannaway's patent-pending Primary Line VoIP(SM) is the first telco-grade VoIP solution to ensure Lifeline calling and E 911 services across multi-vendor product environments. The privately held company is headquartered in Portsmouth, New Hampshire, and has been building innovative IP-Ethernet solutions and service/support programs to fit the specific needs of rural telecom providers since 2002.

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