Palmetto Rural Telephone Selects Occam BLC 6000 System to Add 16,000 New POTS and DSL Ports.

SANTA BARBARA, Calif. -- ILEC Will Add Redundant Gigabit Ethernet Transport to Its Access Network and Build New CLEC 

Occam Networks Inc. (OTCBB: OCCM), a supplier of innovative Ethernet and IP-based loop carrier equipment to telecommunications companies worldwide, today announced Palmetto Rural Telephone Cooperative, an independent local exchange carrier (ILEC) serving Colleton County, S.C., has selected the Occam BLC 6000 System to upgrade its existing access network and to build the network for its new competitive local exchange carrier (CLEC). Palmetto is using the BLC 6000 System to build redundant Gigabit Ethernet rings that will provide more than 16,000 new ports providing POTS and ADSL services to its subscribers.

The ILEC will replace its existing SONET network, which had run out of capacity, with a self-healing Gigabit Ethernet ring that will provide an additional 8,000 ports. Palmetto will upgrade 15 to 20 sites in Colleton County with the Occam BLC 6000 System to add redundant Gigabit Ethernet capabilities to these remote locations. All traffic from the company's older digital loop carriers (DLCs) will be transported over the new Gigabit Ethernet ring, which uses the BLC platform's Ethernet Protection Switching (EPS) for failover protection.

Additionally, the company is installing an identical self-healing Gigabit Ethernet ring in the CLEC that will provide a capacity of up to 8,000 new POTS and DSL ports. Palmetto will deploy approximately 10 BLC 6000 Broadband Loop Carriers in the CLEC network. The new CLEC will expand Palmetto's service area to provide high-speed data and POTS service to Walterboro, S.C., and surrounding areas. The CLEC network is currently under construction, and the company expects to begin delivering services from the BLC 6000 in mid-winter 2005.

"Of all the products we looked at the BLC 6000 offered the most complete Ethernet/IP package available and integrated into our existing network the most gracefully," said Danny Dandridge, general manager of Palmetto. "Solutions from other vendors didn't come close to meeting our needs, nor did they offer us the flexibility or cost-effectiveness that we get with the Occam product. With the Gigabit Ethernet provided by the BLC 6000 we know we can meet growing customer demand, as well as be prepared to deliver new high-bandwidth services such as video when our subscribers are ready for it."

Palmetto considered products from eight different vendors before selecting the Occam BLC 6000 System. After an extensive evaluation process, the company chose the BLC 6000 because it offered the most comprehensive capabilities -- robust Gigabit Ethernet transport, IP service protocols, lifeline POTS, and video -- all in a highly flexible and scalable platform that integrates smoothly with the company's existing network architecture and physical plant.

"Palmetto shares our vision of an Ethernet/IP access network that can scale to meet subscriber growth, that has the flexibility to add new services, and is much easier to install and manage," said Russ Sharer, vice president of sales and marketing for Occam. "Companies like Palmetto are leading the wave of carriers deploying IP-based broadband networks."

About Palmetto Rural Telephone Cooperative Inc.

Palmetto Rural Telephone Cooperative Inc. (PRTC) is an independent phone company located in Walterboro, S.C. Founded in the 1950s, Palmetto currently serves Colleton County, S.C., with 15,000 subscriber lines. PRTC provides its subscribers with superior quality telecommunications products and services at cost-effective prices.

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.