Pannaway Technologies Signs First Canadian IOC Customer; Bruce Municipal Telephone System Selects Pannaway for the Delivery of next-Generation Voice, Video and Data Services to their Ontario Customer-Base.

PORTSMOUTH, N.H. -- Pannaway Technologies, Inc., designers and developers of converged broadband voice, video and data platforms, today announced that Canadian-based Bruce Municipal Telephone System (BMTS/BMI) has selected their IP-enabled Service Convergence Network (SCN(TM)) solution to deliver next-generation broadband services to their customer base of 15,000 existing telecom subscribers. 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's highly flexible SCN will enable BMTS/BMI to provide its subscribers with the industry's highest quality IP-based video and high-speed data services in conjunction with carrier-grade VoIP. BMTS/BMI's new VoIP network will deliver POTS (Plain Old Telephone Service) like quality and reliability with all the advantages of new feature-rich calling options and Web-based call log access not currently available in their legacy telephone environment.

Pannaway's solution is the industry's first next-generation DLC/DSLAM to support both Session Initiation Protocol (SIP) and Media Gateway Control Protocol (MGCP), enabling carriers like BMTS/BMI to use a single product platform to migrate subscribers from a legacy TDM environment to one that supports a long list of advanced calling features.

"We examined the most recognized access solutions to be sure they could support the high bandwidth applications that we will be delivering to our subscribers," said Hans O. Nilsson, President & CEO at BMTS/BMI. "The flexibility of the Pannaway solution allows us to deploy high performance voice, video and data services to as many or as few subscribers in any given area as we need to. This flexibility combined with their industry-unique E 911 lifeline calling capability made Pannaway the clear choice for BMTS/BMI."

Based on patent-pending technology, Pannaway's multi award-winning Primary Line VoIP solution provides automatic failover to an always-available remotely powered back-up POTS phone line that runs transparently to the subscriber ensuring that lifeline E911 service is always available. This is accomplished without premise battery backup or the need to run multiple phone lines to the home, and the subscriber isn't forced to have a different phone number upon lifeline cutover.

"We are pleased that BMTS/BMI chose Pannaway as their access provider of choice for this significant infrastructure upgrade, especially in light of the fact that other major access providers were evaluated," said David Meyer, executive vice president of sales at Pannaway. "In the Canadian telecom market, service providers are in need of a solution that will allow them to deliver high-quality broadband services that meet strict CRTC regulations and an access provider that will become a trusted partner for the long haul. We believe that our innovative solution and world-class customer support model delivers this and we look forward to working with BMTS/BMI and other Canadian IOCs in the coming months."

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.

About Bruce Municipal Telephone System

Bruce Municipal Telephone System (BMTS/BMI) has been providing telecommunication solutions for their customers since 1911. Since its inception BMTS/BMI has grown into a world-class telecommunication company with over 15,000 telephone customers and 20,000 Internet customers.