Northwest Telephone Selects Taqua's OCX to Provide Class 5 Services to Subscriber Base.

Business/Technology Editors

RICHARDSON, Texas--(BUSINESS WIRE)--July 31, 2002

Latest Customer Win Demonstrates Taqua's Continued Momentum in

Penetrating The North American Service Provider Market

Taqua, Inc., a leading provider of next-generation Class 5 switching platforms for voice solutions, today announced that Northwest Telephone, one of Washington State's leading full service integrated communication providers, has selected its OCX next-generation Class 5 switch to provide enhanced, revenue-generating services to its subscriber base. Northwest will be deploying an OCX configured with 272 T1s, which exceeds the largest DMS 10 deployment in Washington State by 222%. Northwest Telephone is the latest addition to Taqua's growing roster of 31 customers throughout North America.

Northwest Telephone is a Competitive Local Exchange Carrier (CLEC) operating as an integrated telecommunications provider that will initially deploy the OCX to replace a Class 4 switch for existing subscribers. Ultimately, Northwest Telephone will use the OCX as part of a complete package of integrated products and services including local phone services, long distance and Internet access for small and medium size business communities in Eastern Washington State, with plans to expand into Oregon and Idaho.

Prior to selecting the OCX, Northwest Telephone considered similar product offerings from several vendors, none of which could match the OCX in terms of price, breadth of Class 5 and Custom Calling features and migration capabilities.

"What was most attractive about the OCX, aside from its price point and Class 5 feature-set, is that it offers TDM functionality while providing a migration path to next generation packet capabilities," said Andrew Metcalfe, President and CEO, Northwest Telephone, Inc. "It's no secret that the world of telecommunications is slowly transitioning to packet-based networks and Northwest Telephone is no different than most service providers in our desire to eventually provide VoIP services. We are confident in deploying the OCX as our vehicle toward that goal."

"As the first telecommunications company in Eastern Washington to be authorized as an alternative local and long distance telephone service provider, Northwest Telephone is ready to capture significant market share through differentiating revenue generating services that the OCX will empower it to offer," said Todd Daniels, Vice President of Sales, Taqua, Inc. "While Northwest Telephone is deploying traditional services today, the OCX enables them to seamlessly migrate voice services over packet when it makes business sense to do so."

About the Taqua OCX

Taqua's OCX(TM) is a next generation Class 5 switch based on a patented "Multiple Application Switching Platform and Method," switch-on-a-card design. The OCX incorporates a core set of revenue generating CLASS & Custom Calling features, as well as essential network and regulatory requirements including LNP, AIN, AMA, GR-303, SS7, PRI, CAS, E911 and CALEA. The OCX also features Taqua's Open Programmable Interface (TOPI(TM)) which provides enhanced services interaction and flexible, programmable objects for new service creation. The OCX is further complemented by the OpenManager(TM) (OM), a GUI-based element management system.

Purpose-built to create an entirely new model for delivering local and toll telecommunications services, the OCX is based on a groundbreaking software and hardware architecture that transforms legacy proprietary and centralized switching environments into open, distributed, scalable and cost effective next-generation networks. Scaling from 32 (including copper line terminations) to 40,000 subscribers (via GR-303 concentration) in a single 17 1/2" X 24 1/2" shelf, the OCX dramatically reduces initial and overall cost of ownership providing carriers with a clear circuit-to-packet migration.

About Northwest Telephone Inc.

Northwest Telephone Inc. (NTI) is a privately held Washington Competitive Local Exchange Carrier (CLEC), operating as an integrated telecommunications provider, offering a complete portfolio of services specialized for the small and medium business community. Headquartered in Wenatchee, NTI will offer service in Chelan, Douglas, Okanogan and Grant counties with plans to expand to the remainder of Eastern Washington by the year-end. Andrew Metcalfe, Rex Pittsinger, and Jenny Rickel founded the company in 1999 at Wenatchee, WA. All natives to Central Washington, this group was key in the development of wireless communications in North Central and Northeastern Washington. For additional information, call 888-528-7889, or visit us on the web at www.nw-tel.com.

About Taqua, Inc.

Taqua, Inc., The Voice in Next Generation Networks, is a privately held telecommunications company that, to date, has received $120M in venture financing. Established in February of 1998, Taqua was founded with a mission to develop an efficient, scaleable and economical alternative to traditional telecommunications voice solutions. Headquartered in the "Heart of Telecom Corridor" in Richardson, Texas, with a research & development center in Hyannis, Massachusetts, Taqua employs 125 telecom professionals and is led by an experienced team of telecom veterans from Lucent Technologies, Nortel Networks, Siemens, Bell Labs, Ascend Communications, Texas Instruments and KAO.

Taqua is focused on providing next generation networking solutions to Rural Local Exchange Carriers (RLECs), Competitive Local Exchange Companies (CLECs), Internet Service Providers (ISPs) and Cable Operators. Currently, Taqua has secured 31 customers spanning North America, accelerating the global service provider adoption for next generation voice switching solutions.

Taqua, OCX and The Voice in Next Generation Networks are Trademarks of Taqua, Inc.