Boston, MA.-- June 12, 2006 -- Axerra Networks, “The Pseudo-Wire Company®” and the leading provider of circuit emulation and service emulation solutions, announced today that it has been named as one of the top three Israeli startups in telecommunications and a finalist in the inaugural “Israeli Startup Contest” sponsored by the Israel Venture Assocation and Red Herring magazine. According to Red Herring, finalists were chosen because of their “vision, technological innovation, and potential impact.”

The panel of independent judges included prominent Israeli entrepreneurs as well as high-tech research analysts. Finalists were invited to present their companies at the Israel Venture Association’s annual high-tech conference on June 19 – 20, 2006 and each finalist was profiled in the June 19 edition of Red Herring magazine.

“We’re pleased to be recognized for our vision, innovative Pseudo-Wire technology, and market leadership,” said Gadi Tamar, CEO of Axerra Networks. “By providing a full-service alternative to TDM access, our solutions benefit all kinds of service providers, including mobile wireless operators, cable MSOs, competitive service providers, and incumbent carriers."

Axerra Networks’ Pseudo-Wire solutions enable voice and data traffic to be directed over any type of packet access network. 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.

Commenting on one of the benefits of Axerra’s Pseudo-Wire technology, Gilad Nass, research director at IDC and one of the contest judges said, “There is a huge potential cost savings to service providers by using a more efficient use of bandwidth instead of investing in additional infrastructure."

Axerra Networks has garnered a number of other prestigious industry awards this year. At the 3GSM World Congress in February, Axerra's solutions were named as "commended" finalists in the GSM Association 2006 Awards for "best radio access product or service." In May, Axerra was named a recipient of the 2006 Red Herring 100 Europe award, which recognizes the 100 top private companies playing a leading role in innovation and technology. In June, Axerra has been named to FierceMarket's Fierce 15 list, honoring the company's innovations that benefit the wireless market.

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 mobile wireless operators, cable MSOs, competitive service providers, and incumbent carriers 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, cable HFC, xDSL, PON, etc.) into a full-service alternative to TDM access. For more information, please visit: www.axerra.com.

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