Terawave's Platform Chosen by Firma ITEL to Provide Communications Services During the Figure-Skating World Championship.

HAYWARD, Calif. -- Terawave announced today that Firma ITEL used Terawave PON converged access products to provide all communications services for the Figure Skating Championship held at the Luzniki Sport Complex in Moscow during March 13th-20th, 2005.

"When the Moscow Government Committee for Physical Training and Sports, together with the Organizing Committee of the Figure-Skating World Championship commissioned us to deliver all the communications needed for this event, we faced a challenge to select and deploy an access network technology capable of ensuring Quality of Service, high reliability and a very short deployment time," said Denis Kireev, technical director at ITEL. "After a detailed analysis of the several alternatives available in the market, ITEL selected the Terawave PON platform. We had been using Terawave products for more than a year, and its excellent performance, reliability, ease of installation and operation were the determining factors in our product choice for this critical project," added Mr. Kireev.

"We are proud of the vote of confidence that Firma ITEL gave Terawave when they chose us to help ensure the success of such a prestigious event," said Frank Lockwood, Sr. VP Sales and Marketing of Terawave Communications. "Working closely with our local partner, Telecom Transport, we helped ITEL deliver an integrated access network that fulfilled its stringent requirements to quickly deploy a reliable, multi-service network."

About Firma ITEL

ITEL is a telecommunications company founded in 1995 to introduce advanced technologies and communications services into the Russian market. Thanks to its continuous service improvements and its partnership with OJC ROSTELECOM, Russia's leading provider of Local and International communications, ITEL is able to provide the highest level of services to customers.

Using its own fiber optic network, ITEL currently offers a full line of fixed lines services with services such as local access, international digital telephony, corporate networks and switched line Internet access amongst others. Using the latest technological innovations, ITEL is able to offer "toll free calls", telemarketing, video-conferencing and other intellectual services and call-centre services.

About Terawave Communications

Terawave Communications is a leading manufacturer of next generation broadband converged access solutions for service providers, MSOs, government and enterprise customers. The Terawave family of products integrates all types of user services over PON, Gigabit Ethernet, SDH and SONET network facilities. Terawave supports a comprehensive suite of networking protocols, including IP, MPLS and ATM. User services include Ethernet private lines and VPLS VPNs, TDM private lines, video and telemetry.

Terawave platforms enable the most cost effective aggregation of voice, video and data on a single network access point. The Terawave Management System (TMS) provides state of the art management services that give customers the ability to deliver services and bandwidth on demand, while minimizing time to market, and reducing capital and operating expenditures.

Terawave Communications is delivering converged access solutions to over 70 customers on 5 continents.

For further information, visit the company web site at www.terawave.com.