Boca Raton, FL and New York, NY – May 18, 2005 – Axerra Networks, “The Pseudo-Wire Company™,” and the leading provider of circuit emulation and service emulation solutions today announced that a major industry report from Light Reading’s highly respected research group has identified Pseudo-Wires as the key technology for delivering profitable services over next-generation networks. The report, which highlights the availability of Axerra Networks’ full range of AXN Pseudo-Wire Gateways and Access Devices™, validates the technical and strategic direction that Axerra has followed since it pioneered the concept now known as Pseudo-Wires.

The detailed report is titled “Pseudowires and the Future of Transport and Access Networks” and is part of the Heavy Reading series. According to the report, Pseudo-Wire technology “is the solution for convergence in future telecommunications networks” and “will be a critical component in the rollout of next-generation telecom networks.” It credits Axerra with having a prescient vision of the market opportunity and with having working products in the field since January 2003. In fact, Axerra is the only vendor that can deliver today both small, low-cost access solutions and redundant, high-density, carrier-class solutions.

With this Heavy Reading report, coupled with the recent Light Reading article “How Far Can MPLS Go?” and a webinar entitled “Pseudo-Wire Technology for True Convergence,” Pseudo-Wire technology is being recognized as an essential network component for all kinds of service providers. “An early innovator of Pseudo-Wire technology, Axerra continues to extend the frontier of Pseudo-Wire applications into mobile wireless, cable MSO, and Carrier Ethernet networks,” states Scott Clavenna, Heavy Reading Chief Analyst and author of the Heavy Reading report. “Without question, one of the most important market opportunities for Pseudo-Wire access solutions is in the wireless market. In this application, the primary value of Pseudo-Wire technology is backhaul optimization." Axerra offers a range of Pseudo-Wire platforms optimally sized for CPE, mobile cell sites, MTU applications, and most importantly, for central office and headend applications.

“Our vision is for unified packet networks based on Pseudo-Wires over Carrier Ethernet, MPLS, and IP,” states Gil Biran, founder, president, and CEO of Axerra Networks. “Unified networks must furnish both legacy and emerging services; so our platforms support circuit emulation and service emulation, including Frame Relay, ATM, and Ethernet services. This is what enables us to combine both 2G and 3G mobile services, including both voice and data, on a unified radio access network (RAN) over Pseudo-Wire.”

Axerra Networks’ family of AXN Pseudo-Wire Gateways and Access Devices enable mobile wireless providers to use packet access networks as a cost-saving, full-service alternative to T1/E1 backhaul in Radio Access Networks; they enable cable MSOs to enter the lucrative commercial services market with a full range of services; and they enable incumbent and competitive access providers to extend IP and legacy voice plus data services in native format over Carrier Ethernet, IP, and MPLS networks, without stranding legacy service revenue.

Recently, Light Reading issued a clarification regarding the source of the Pseudo-Wire technology used in Axerra’s products: Axerra is the originator and owner of all Pseudo-Wire technology implemented in its platforms. Axerra has collaborated with a number of vendors to standardize Pseudo-Wire implementations and ensure interoperability, but Axerra’s solutions do not utilize any other company’s Pseudo-Wire silicon.

More details about Heavy Reading’s report are available at www.heavyreading.com.

About Axerra Networks, Inc.

Axerra Networks is the leading provider of circuit emulation and service emulation solutions over packet access networks. Axerra’s Pseudo-Wire solutions enable incumbent carriers, competitive service providers, mobile wireless operators, and cable MSOs to extend IP + legacy voice and data services in native format over Ethernet, IP, and MPLS networks. The result is greater operational efficiency, new revenue opportunities, and a smooth migration strategy to a single converged network, without stranding any revenue streams from profitable legacy services. With Axerra’s Pseudo-Wire solutions, service providers can convert any packet access network (Carrier Ethernet, broadband wireless including WiMAX, DOCSIS HFC, etc.) into a full-service alternative to TDM access. For more information, please visit: www.axerra.com.

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