Occam Networks and Infogate Online Deploy Windows Media Video 9 (VC-1) at Citizens Telephone; Innovative IPTV Solution Provides IOC with More Channels and Video Streams While Using Less Bandwidth.

SANTA BARBARA, Calif. -- Occam(R) Networks Inc. (OTCBB: OCCM), a supplier of innovative Ethernet- and IP-based loop carrier equipment to telecommunications companies worldwide, and Infogate Online Ltd., a leader in software solutions for IPTV, video on demand (VOD) and games on demand over broadband networks, today announced that the two companies have deployed Windows Media Video 9 (Microsoft's implementation of VC-1, the proposed SMPTE standard) in the IPTV access network of Virginia-based Citizens Telephone Cooperative to provide the independent operating company (IOC) with a more efficient means to deliver additional TV channels and video streams with less bandwidth. This is the first deployment that combines Windows Media Video 9 for video on demand (VOD) and MPEG-2 on the same middleware platform in a live telco access network.

"We are pleased with the solution developed by Occam and Infogate," said Danny Vaughn, network manager at Citizens Telephone Cooperative. "We want to provide our subscribers with as many services as possible, but we want to deliver them in a way that doesn't use an enormous amount of our backbone network bandwidth. Using Windows Media Video 9 (VC-1) is a more efficient way to increase the number of video streams and channels Citizens can deliver."

The solution developed for Citizens uses the Occam Broadband Loop Carrier, Infogate's OnDema(TM) middleware, Windows Media Video 9, CE appliance software and Bast set top boxes to simultaneously deliver multiple VOD streams at 1.5Mbps. Citizens has installed Windows Media Encoder 9 Series on a Hewlett-Packard server and is using a ViewCast(R) Niagara(R) video card encoder to encode video content. The solution is installed across the entire IOC's access network and is delivering services across its 7500 access lines.

"Occam Networks and Infogate's choice of Windows Media Video 9 (VC-1) will allow Citizens Telephone Cooperative to efficiently deliver broadcast-quality video to the home via DSL and HDTV," said Kevin Unangst, director of Windows Digital Media at Microsoft Corp. "This is a strong endorsement of the high quality and efficiency of Windows Media Video 9 and the value it brings to high-quality content delivery solutions."

Windows Media Encoder 9 Series is a powerful tool for content producers who want to take advantage of the many innovations in Windows Media Video 9 (VC-1) including high-quality multichannel sound, high-definition video quality, new support for mixed-mode voice and music content, and more. VC-1 recently reached the critical step of Final Committee Draft (FCD) status with SMPTE's C24 Technology Committee, in which it is officially referenced as SMPTE standard 421M.

"Infogate's OnDema middleware platform is the perfect solution for an IPTV service such as Citizens, providing the capability to combine Windows Media Video 9 (VC-1) for VOD and MPEG-2 for TV channels on a single platform," said Daniel Levy, vice president of sales and marketing at Infogate Online Ltd. "We are excited to be part of a solution that will make it easier and more cost-effective for Citizens to deliver such advanced services."

Infogate's OnDema IPTV platform enables telecommunications, cable broadband operators, and ISPs to offer value-added services such as video on demand, interactive gaming, television channels, and live events to broadband subscribers using both the subscriber's set top box and personal computer (PC). The OnDema platform provides the infrastructure for distributing content and controlling, serving, and billing for services that until now could not be reliably provided due to bottlenecks between the content providers and the end users. Network operators can utilize a single OnDema platform to service any number of third-party content providers and subscribers. OnDema supports content encoded in both Windows Media Video 9 (VC-1) and MPEG-2 formats simultaneously.

"Occam is a leader in the IPTV market," said Russ Sharer, vice president of marketing and sales for Occam. "Our deep technological expertise and broad experience in delivering IPTV solutions enables us to work with partners and resellers to develop these kinds of original solutions that are making IPTV a reality."

Occam Networks pioneered the broadband loop carrier product category to enable telecommunications providers to create broadband access networks capable of delivering new revenue generating services. Occam Broadband Loop Carriers incorporate low-cost, high-bandwidth Ethernet transport, integrated software features including IGMP routing on every blade and a series of video service management tools, and the latest ADSL2Plus technology to provide service providers with the most efficient and economic delivery of IPTV. Occam BLCs also transport all voice over IP (VoIP) to simplify the transition to next-generation switching technologies while supporting traditional Class 5 switching and POTS.

The Occam Networks BLC 6000 System, Occam's second-generation BLC, is based on the Intelligent Blade Interconnect Architecture (IBIA), which provides cost-effective low, medium or high capacity configurations. The "blades" are deployed in all configurations in both the remote terminal and the central office to enable universal sparing, lower cost-of-platform deployment and very simple training and operations management. The system allows carriers to distribute a high-capacity system in low-capacity environments and scale to meet the demands of a rapidly expanding subscriber base.

About Infogate Online

Infogate Online develops and markets the OnDema software platform that enables telecommunications, DSL, cable, broadband ISP and satellite operators to offer their subscribers high quality on demand content services such as video on demand, TV channels, pay-per-view and games on demand. The OnDema(TM) platform is designed to deliver all of these services to both IPTV and PC subscribers with carrier-grade quality. Infogate is headquartered in Tel Aviv, Israel, with sales and support offices in the United States, China and Taiwan. For more information please visit www.infogateonline.com.

About Occam Networks Inc.

Occam Networks Inc. develops and markets innovative Broadband Loop Carrier networking equipment that enable telephone companies to deliver voice, data and video services. Based on Ethernet and Internet Protocol (IP) technologies, Occam's equipment allows telecommunications service providers to profitably deliver traditional phone services, as well as advanced voice over IP, residential and business broadband, and digital television services through a single, all-packet access network. Occam is headquartered in Santa Barbara, Calif. Additional information can be found at www.occamnetworks.com.

Portions of this press release may contain forward-looking statements regarding future events or the future performance of Occam Networks. Forward-looking statements involve risks and uncertainties, which could cause actual results to differ materially from any future performance suggested in such statements. Rapidly changing technologies and market conditions may require changes to Occam's products. Occam does not undertake any obligation to publicly update any forward-looking statements as a result of new information, future events or otherwise. Please also refer to the company's most recent quarterly report on Form 10-Q, annual report on Form 10-K and other filings with the SEC. These filings contain and identify other important factors that could cause actual results to differ materially from those contained in any forward-looking statements.

MPEG is Moving Pictures Experts Group.

SMPTE is Society of Motion Pictures and Television Engineers.

Occam and Occam BLC 6000 are either registered trademarks or trademarks of Occam Networks Inc. in the United States and/or other countries.

OnDema is a trademark of Infogate Online in the United States and/or other countries.

ViewCast and Niagara are registered trademarks of ViewCast Corp.

The names of other companies and products mentioned herein may be the trademarks of their respective owners.