Pannaway Technologies Closes Successful Q3 2005; Highlights Include Launch of End-to-End IP Management System, 14 New Triple Play Customer Wins and Emergence into Burgeoning CLEC/Municipality Markets.

PORTSMOUTH, N.H. -- Pannaway Technologies, Inc., designers and developers of RUS listed, converged broadband voice, video and data platforms, today announced continued company success and momentum with the close of Q3 2005. During the quarter, Pannaway announced the availability of its next-generation Broadband Access Manager (BAM(TM)), signed 14 new IOC/CLEC customers, achieved acceptance for listing by the United States Department of Agriculture's Rural Utilities Service (RUS) and continued to earn industry accolades as an innovative provider of converged IP-based broadband services.

In September, Pannaway made major news with the release of its Broadband Access Manager, a highly intuitive and extremely affordable broadband element management system (EMS). Pannaway's BAM is the industry's first end-to-end EMS that is designed to meet the specific needs of rural telecom providers. BAM reduces the installation complexity and operational expenses (OPEX) associated with qualifying, rolling out and maintaining voice, video and data services.

During the quarter, Pannaway added 14 new telecom providers to its growing list of customers. In addition to bolstering its strong roster of U.S.-based IOCs, Pannaway signed its first Canadian-based IOC, Bruce Municipal Telephone System (BMTS/BMI) in Ontario, Canada. The deal marks an important first step into the Canadian market for Pannaway, whose patent-pending Primary Line VoIP(SM) functionality will enable customers such as BMTS/BMI to adhere to recent Canadian Radio-Television and Telecommunications Commission (CRTC) legislation, which mandates that all VoIP deployments possess the ability to offer emergency 911 services comparable to incumbent carriers.

Pannaway also gained significant traction in the emerging CLEC and municipality markets, signing REI Communications in Bartow, Florida. REI will leverage Pannaway's IP packet system to deliver reliable Triple Play services to as many as 200,000 rural customers in Central Florida. In addition to BMTS/BMI and REI Communications, Pannaway's new customers include Empire Telephone Corp. of Prattsburgh, NY and ETEX Telephone Cooperative in Gilmer, TX.

"This was another outstanding quarter for Pannaway on a number of fronts, underscored by our emergence into the CLEC and municipality sectors," said Mike Skubisz, CTO of Pannaway Technologies. "Our primary customer base will always be the IOC community, but CLECs and municipalities represent a major growth opportunity for us as illustrated by REI Communications, who will leverage the Pannaway system to deliver state-of-the-art Triple Play services to over 200,000 residential and municipality subscribers and small businesses through the end of the year and into 2006. This market is emerging rapidly and we anticipate the signing of additional CLEC/municipality customers moving forward."

In August, Pannaway announced that its Service Convergence Network (SCN(TM)) was accepted for listing by the United States Department of Agriculture's Rural Utilities Service (RUS). Acceptance on the RUS List of Materials means that qualified RUS borrowers can use long-term, low-interest loans funded by the U.S. federal government to purchase Pannaway's SCN. Inclusion on the RUS List of Materials is an important milestone for Pannaway and will provide the company with opportunities to sell to rural telecom providers - a market that is generally more accepting of innovative technology solutions than larger telcos.

Pannaway closed the quarter with a September nomination for the prestigious World Technology Awards. Sponsored by the World Technology Network, a global organization focused on bringing important emerging technologies to the forefront, the World Technology Awards are presented each year to outstanding innovators in the fields of communications technology, information technology, energy, nanotechnology biotechnology and space. The winners will be announced during the 2005 World Technology Summit, taking place November 14-15 in San Francisco, CA.

About Pannaway Technologies

Pannaway provides telco-grade, converged voice, video and data solutions to telecom service providers and emerging Triple Play services companies. Pannaway's multi-award winning, RUS listed and patent-pending IP technologies enable telecom providers of all types and sizes 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 telco-grade VoIP solution with integrated Primary Line service for lifeline E 911 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.