Metrobility Optical Systems Reports Strong Sales Growth, Continued Focus on Service Provider Market.

MERRIMACK, N.H. -- Diversified Product Line, Continued Product Innovation, Strong Technology and Reseller Partnerships Linked to Year-Over-Year Revenue Growth

Metrobility Optical Systems today announced it is embarking on its 15 year anniversary in the Ethernet market with a strategic focus on accelerating its sales success in the optical Ethernet service provider market. Metrobility reports that as of the third quarter 2004, service provider equipment shipments are up approximately 135 percent over the same period last year. Today, approximately 50 percent of Metrobility's business comes from service provider customers throughout the world.

The company plans to expand upon recent revenue growth and growing market share in the access, connectivity and wavelength multiplexing markets through continued product innovation, strong technology and reseller partnerships and a focus on emerging technologies that support triple-play voice, video and data services. Metrobility has significantly increased the number and size of deployments among service providers by introducing solutions that ensure comprehensive, end-to-end management of Ethernet services. Recent company and sales success includes:

--Metrobility's 2004 year-to-date revenues have increased nearly 40 percent over 2003. The revenue growth is a result of strong demand for its optical Ethernet, high-availability networking solutions in both the enterprise and service provider markets.

--A 245 percent increase in domestic service provider shipments since 2003. In North America, service providers such as Cogent, Time Warner Cable and Shaw Communications are using Metrobility's products to ensure secure, reliable and manageable Ethernet services to business and residential customers.

--A 130 percent increase in international service provider shipments since 2003. Service providers in Scandinavia, Latin America and Asia are utilizing Metrobility's products to meet exponential demand for broadband connectivity. Telefonica in South America, Elisa in Finland, Hutchinson in Hong Kong, and Philcom in the Philippines are among Metrobility's service provider customers.

--The expansion of the company's Ethernet-based CWDM product line. Metrobility's CWDM shipments have increased 500 percent in 2004.

--Strong reseller partnerships focused on the service provider market. Walker and Associates and Fonex in North America, Coasin in South America, Cygate in Finland, and Commart and Braid Networks in Asia have shown strong service provider sales in 2004.

"There is little doubt that Ethernet is emerging as the universal broadband solution for network builders," said Mark Walker, president of Walker and Associates. "Remote management of optical Ethernet services is critical and Metrobility is a leader in this area. Metrobility drives new products and standards to market that ensure service providers can take advantage of Ethernet for the rollout of voice, video and data services. Their pioneering stance in the remote management and troubleshooting of Ethernet services is impressive and bodes well for carriers seeking to maximize profitability from Ethernet services."

Metrobility is leading the market in product innovations that enable services providers to easily and cost-effectively manage Ethernet services. Metrobility has been first-to-market with a number of product innovations that have shaped the build-out of mission critical public and private networks. In its 15 year history, Metrobility has been credited with:

--Inventing copper-to-fiber optic connectivity solutions;

--Creating the first optical Ethernet fiber connectivity modular chassis;

--Creating the first patented line protection/restoration media converter product;

--Pioneering comprehensive element management software for fiber connectivity access products;

--Creating the industry's first NEBS Level 3 certified platform for fiber optic connectivity and access products;

--Introducing the first "EFM OAM Feature Ready" standalone product to provide a comprehensive set of operation, administration and maintenance (OAM) features; and

--Introducing the first Gigabit Ethernet line protection and restoration product.

Metrobility enables network builders to offer carrier-class services for voice, video and data to end users. Its flagship Radiance Optical Ethernet System enables network builders to connect, access and multiplex high-speed optical local, metro and wide area network traffic using optical Ethernet. The company's newest products extend baseline VLAN technology to enable delivery of multiple, converged end-user services across the first mile optical access network. These products offer multi-layer management capabilities and are designed to maintain the maximum isolation between public and private networks.

Simple and easy to deploy, provision and manage, Ethernet enables carriers to roll out more bandwidth to more locations, improve service flexibility and simplicity and provide cost-effective and rapid rollouts of new services to customers. Emerging Ethernet standards that support advanced, end-to-end management ensure critical quality of line, service and performance guarantees for carriers looking to maximize service revenues.

"Our approach to managed services at the edge of networks ensures that changes at the core of the network do not affect the reliability of access lines and services," said Alex Saunders, president and CEO of Metrobility. "This strategy has driven Metrobility's business, and we have emerged from one of the toughest economic periods in telecommunications history with a resolute focus on supplying the market's most advanced and comprehensive set of managed products for service providers building network services with optical Ethernet. Through our network of strategic technology and reseller partners, Metrobility has executed on the need for advanced Ethernet management in networks around the world. First-to-market product introductions have established Metrobility's position as the market's innovation leader. We intend to maintain the speed of product innovation for the next 15 years and beyond to maintain our position as the preeminent leader in the management of end-user services."

About Metrobility Optical Systems

Metrobility Optical Systems is an innovative, next generation optical networking company focusing on delivering optical access, connectivity and multiplexing to create a more efficient, more reliable, and more manageable network infrastructure. Metrobility harnesses the power of Ethernet and fiber optics to deliver superior carrier-class network connectivity solutions to bring WAN-manageable capabilities - optical remote management, connectivity, and access - to the metropolitan area network. As a market leader in media conversion, Metrobility has over a million units installed in networks around the world and is the product of choice for network builders who need to maximize network uptime and ensure network availability. Metrobility Optical Systems is an ISO 9001:2000 registered company based in Merrimack, New Hampshire USA. More information on Metrobility Optical Systems can be found at www.metrobility.com.

Lancast, Metrobility, Metrobility Optical Systems, and NetBeacon are registered trademarks of Metrobility Optical Systems, Inc. All other trademarks are the property of their respective owners.