Pannaway Technologies Announces $15.6 Million in Private Funding; Funding Will Enable Company to Advance IP Convergence R&D; Expand Service & Support Organization; Enter Emerging Markets.

PORTSMOUTH, N.H. -- Pannaway Technologies, Inc., designers and developers of converged broadband voice, video and data platforms, today announced that it has successfully completed a $15.6 million E round of funding from private investors led by S. Robert Levine, the company's principal investor. This latest round brings the Pannaway's total investment to $56.1 million in private funding and was oversubscribed, as were the company's four previous rounds. Because the company carries zero debt it will be able to use this cash infusion without restriction to further research and development for its Service Convergence Network (SCN(TM)); expand its service and support organization and programs; and move forward with expansion into emerging markets which include Department of Defense, municipalities, multi-tenant units (MTU), and multi-dwelling units (MDU).

"The Triple Play services market is very strong right now and the marketplace has truly embraced Pannaway's award-winning access solutions as illustrated by their strong stable of revenue-generating customers," said Robert Levine, Principal Investor. Recurring revenue from Pannaway's existing customer base, combined with this $15.6 million round of funding will enable the company to invest in strategic areas of the business that will benefit their customers greatly."

Pannaway will continue to invest in its R&D effort to ensure it stays on the leading edge of technology development. Areas of R&D focus will include new SIP-based calling feature development and enhancements to its already powerful Broadband Access Manager (BAM(TM)) for end-to-end ADSL2+ services provisioning. As the industry's only next-generation, end-to-end IP-based access system capable of supporting both SIP and MGCP, Pannaway enables telecom service providers to quickly and cost-effectively build upon legacy architectures while future-proofing their investment through the ability to support cutting edge SIP-based voice services.

"2005 is shaping up to be a banner year for our company. Between scheduled new customer deployments and trial evaluations, we expect to install our IP access solutions at 25 sites in the coming quarter alone," said Gary Davis, president of Pannaway. "With this latest investment round one area of focus will be the expansion of our support organization and programs ensuring our customers the best pre and post sales care available in the industry."

Pannaway has already begun the process of expanding its existing product solutions into emerging markets. The company recently signed a contract with SMS Data Products Group, Inc., a leading systems integrator in the federal market sector. SMS is an independent network solutions provider that designs, builds and supports enterprise network architectures using the best technologies available and is headquartered in McLean, Virginia. Other areas of strategic focus include multi-tenant unit and multi-dwelling unit owners. Pannaway's expansion into these emerging markets will create new demand for high-revenue Triple Play services within the company's target IOC and CLEC communities.

Pannaway's Service Convergence Network allows rural telecom service providers and emerging Triple Play providers to optimize the existing "pipeline to the premise" to build out a network for a successful IP-based Triple Play delivery of converged broadband voice, video and data services - without requiring significant upgrades to the existing network infrastructure.

About Pannaway Technologies

Pannaway provides true next-generation converged voice, video and data solutions to telecom service providers and emerging Triple Play services companies. Pannaway's multi-award winning and patent-pending IP technologies enable telecom providers worldwide to deliver profitable broadband services to homes and businesses at a fraction of their historical costs. Pannaway also delivers the industry's first end-to-end carrier-class VoIP solution with integrated Primary Line service for lifeline POTS support. The privately held company is headquartered in Portsmouth, New Hampshire, and has been building solutions and service/support programs to fit the specific needs of rural telcos since 2002.

For more information, please visit www.pannaway.com.