Limassol, Cyprus and Boston, MA – September 5, 2006 – Axerra Networks, “The Pseudo-Wire Company®” and the leading provider of circuit emulation and service emulation solutions, announced that PrimeTel, Ltd, a leading telecommunication and information technology company based in Cyprus, has successfully deployed Axerra’s Pseudo-Wire solutions, delivering G.703 leased-line data and voice services with both local and international connectivity over its Carrier Ethernet/IP network. In addition, Axerra’s Pseudo-Wire solutions enable PrimeTel to provide efficient, cost-effective backhaul of E1 Primary Rate Interface (PRI) services as well as Frame Relay and VPN traffic.

PrimeTel, a telecommunications carrier that owns and operates a regional network spanning Cyprus, Greece, Russia, and the United Kingdom is using Axerra’s AXN Pseudo-Wire Gateways and Access Devices™ to provide Leased Line, Frame Relay, and IP data services, including FR VPNs and PBX backhaul throughout the countries it serves. PrimeTel uses a fiber optic network to offer broadband capabilities and services to all types of users including business, residential, corporate, and carrier.

Axerra’s solution provides the most comprehensive set of Pseudo-Wire services in the industry, including Circuit Emulation Pseudo-Wire, Frame Relay and HDLC Pseudo-Wires, ATM Pseudo-Wires, Ethernet Pseudo-Wires, and Legacy + IP aggregation with Layer 2 separation, security, and QoS/CoS over next-generation networks. Axerra’s Pseudo-Wire solutions enable the widest range of traditional business services and maps them onto MPLS / Carrier Ethernet, Cable HFC, xDSL, EPON/GPON, and WiMAX, creating a full-service alternative to TDM access and SDH backhaul.

“Axerra Networks’ Pseudo-Wire solutions enable us to leverage the advantages of our Carrier Ethernet network while providing a complete range of data and voice services to all our customers,” said Vladimir Ivashchenko, Chief Technology Officer of PrimeTel, Ltd. “In addition, we are excited about reducing our reliance on E1 lines for backhaul and providing new services such as Frame Relay VPNs to our customers.”

“Axerra is pleased to be working with PrimeTel to bring the power and versatility of Pseudo-Wires to their network,” says Denis Bambury, VP Sales – EMEA for Axerra Networks. “With Axerra’s AXN Pseudo-Wire Gateways and Access Devices™ located at major nodes throughout Cyprus, Greece, Russia, and the U K, PrimeTel is already seeing benefits from circuit emulation Pseudo-Wires for cost-effective E1 backhaul of voice and data traffic, as well as Frame Relay Pseudo-Wires for VPN capabilities.”

About PrimeTel, Ltd.

PrimeTel Ltd is a telecommunication and information technology company incorporated in Cyprus. PrimeTel owns and operates a truly regional network spanning across Greece, Cyprus, Russia, and the United Kingdom providing city-to-city connectivity, data communications, and IP-based services between key European and Middle East markets. PrimeTel is one of the few telecommunications operators in the region to provide a full spectrum of connectivity and services. For more information, please see: www.prime-tel.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 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, xDSL, EPON/GPON, cable HFC, etc.) into a full-service alternative to TDM access. For more information, please visit: www.axerra.com.

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