Nortel and Calix Extend Relationship With Joint Marketing Agreement.

Successful Strategic Alliance Transitions to Marketing Partnership

PETALUMA, Calif. -- Calix today announced a joint marketing agreement (JMA) with Nortel following up on the highly successful strategic alliance put in place by the two companies three years ago. The JMA allows the companies to continue working closely to help service providers deploy advanced packet-based broadband access infrastructure supporting Nortel's IP-based information, communication, and entertainment services. The JMA follows up on a three-year-old strategic alliance that generated 26 customers and resulted in the deployment of over 2,300 Calix C7 multiservice access platforms (MSAPs) and over 400,000 physical interfaces.

According to Ken Couch, Director of IPTV Marketing, Nortel, "As Nortel continues to deploy our IPTV and video-intensive solutions, our customers require a 'true broadband' solution that can handle the rigors that video services require. Calix is an ideal access partner for our voice, video, and data solutions as they provide both the proven compatibility and the performance that creates a winning combination in the market place."

John Colvin, Calix vice president of field operations, added, "The continuation of our affiliation with Nortel, which has produced a significant number of large customer deployments throughout North America, gives our customers the technology, solutions, and integration capabilities required to quickly and seamlessly deploy advanced IP-based services."

The Nortel-Calix JMA calls for the two companies to collaborate on a variety of marketing and sales activities. In addition to working together to promote emerging IP-based services, the companies will also leverage Calix Compatible, a solutions assurance program designed to ensure interoperability across multiple suppliers. With over 65 members, Calix Compatible simplifies the process of deploying infrastructure necessary to support advanced new IP-based services such as IPTV.

About Calix

Calix is the largest telecom equipment supplier focused solely on access solutions for broadband service delivery. Service providers deploy Calix access systems to enable a rich set of information, communication, and entertainment services and to expand their revenue base beyond connectivity. Calix access innovation helps service providers transform their networks from circuit to packet, narrowband to broadband, and copper to fiber. Calix has deployed millions of ports and tens of thousands of systems into hundreds of service provider networks throughout North America. For more information, visit the Calix website at www.calix.com.

This shareholder release may contain forward-looking statements that are based upon management's current expectations and are inherently uncertain. Forward-looking statements are based upon information available to us as of the date of this release and we assume no obligation to revise or update any such forward looking statement to reflect any event or circumstance after the date of this release. Actual results and the timing of events could differ materially from current expectations.