Valley Telephone Deploys Occam BLC 6000 to Deliver Triple Play Services; Arizona Telco Will Deliver Voice, Video and Data Services over IP/Gigabit Ethernet Network.

SANTA BARBARA, Calif. -- Occam Networks(R) Inc. (OTCBB: OCCM), a supplier of innovative Ethernet- and IP-based loop carrier equipment to telecommunications companies worldwide, today announced that Valley Telephone Cooperative (VTC) has selected the Occam BLC 6000(TM) System to upgrade its access network to an Ethernet- and IP-based broadband access network capable of delivering Triple Play services, voice, video, and high-speed data. Over the next two years VTC will replace most of its 78 digital loop carriers (DLCs) with the Occam BLC 6000.

"An Ethernet- and IP-based access network is the best solution for companies like VTC who want to re-build to be able to deploy new services," said Chanse Bruns, network manager for VTC. "An all Ethernet/IP network is significantly less expensive to install and manage, makes provisioning much simpler, requires fewer people to service and maintain, and provides us with the kind of flexibility that we need."

VTC is in the beginning phase of a two-year plan to upgrade its entire network to all Ethernet and IP with the goal of delivering a full array of Triple Play services to its approximately 9,500 subscribers in southeastern Arizona and northwestern New Mexico. To date it has installed the Occam BLC 6000 in all its central offices (COs) to deliver services from the softswitch and will begin replacing its existing DLCs with the Occam BLC in the coming months.

"We have been testing the BLC 6000 for the last two months and our technicians are delighted with how simple it has been to install and how smoothly provisioning services has been," Bruns continued. "We sent a few technicians who were unfamiliar with the product to install the BLC, and they were able to get the product up and running with only a set of brief instructions."

VTC selected the Occam BLC 6000 over products from three other vendors because it met their IP/Ethernet requirements and for a variety of other reasons. According to Bruns, "We like the fact that we were able to speak with existing Occam customers about the product. Both Occam and the BLC 6000 have an excellent reputation in the industry and Occam's customers are very happy with the product. We also really like the size of the BLC 6000 -- it gives us a great deal of network flexibility. Other key factors in our decision to choose the Occam BLC were its simplicity and ease of use, its price, and its immediate availability."

"The Occam BLC 6000 continues to be the best choice for telcos looking to leverage IP and Ethernet in their access networks," said Russ Sharer, vice president of sales and marketing for Occam. "With more than a hundred existing IOCs as customers, we have the most experience in building Ethernet/IP access networks which accelerates deployments for customers such as VTC."

About Valley Telephone Cooperative

Established in 1962, Valley Telephone Cooperative Inc. provides telecommunications services to more than 9,000 rural customers in southeastern Arizona and southwestern New Mexico. The company owns a total of 13 exchanges, with VTC operating nine exchanges and Copper Valley operating four exchanges. Together these exchanges support more than 9,500 access lines. Valley Telephone offers an array of services including landline telephone, dial-up Internet, ADSL and high-speed wireless Internet access; and business systems to more than 20 rural communities. VTC headquarters are located in Willcox, Ariz., with remote offices in Benson, Clifton, Safford, Ariz., and Animas, N.M. Visit www.vtc.net for more information.

About Occam Networks Inc.

Occam Networks Inc. develops and markets innovative broadband loop carrier networking equipment that enables 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.

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