Boston, MA and Stockholm, Sweden – December 11, 2006 – Axerra Networks, “The Pseudo-Wire Company®” and the leading provider of circuit emulation and service emulation solutions, today announced that Dataphone, a full-service national carrier in Sweden, is deploying Axerra’s Pseudo-Wire solutions for PBX backhaul over Ethernet and xDSL. Axerra’s award-winning AXN Pseudo-Wire Gateways and Access Devices™ enable Dataphone to utilize the power and flexibility of packet networks as a full-service alternative to TDM access in its growing national network.

Dataphone is a nationwide competitive carrier featuring telephony and Internet services with robust SLAs from Sweden’s most advanced MPLS backbone. In December 2005, Dataphone merged with Citylink and now provides fixed-line voice, mobile, and Internet data services to customers throughout the country.

System delivery and integration functions are being provided by Promacom, which has a 15-year track record in the delivery of communications solutions to service providers and city carriers. Promacom works together with the world’s leading manufacturers of communications equipment.

With Axerra Networks’ Pseudo-Wire solutions, Dataphone is able to deliver the widest range of traditional E1 and emerging services as it backhauls PBX traffic over Ethernet and xDSL. Axerra’s AXN Pseudo-Wire Gateways and Access Devices provide the most comprehensive set of voice and data Pseudo-Wire services in the industry: Circuit Emulation Pseudo-Wire, Frame Relay and HDLC Pseudo-Wires, ATM Pseudo-Wires, plus Ethernet and IP aggregation services while preserving security and QoS/CoS over next-generation packet-access networks.

According to Dataphone and Promacom, Axerra’s Pseudo-Wire solutions underwent a rigorous competitive evaluation and were selected based on the AXN’s unmatched latency reduction features, extensive performance monitoring capabilities, and robust OAM feature set.

“We’re thrilled that Axerra’s solutions were able to meet and even surpass our tough technical requirements,” said Mikael Hugo, Vice President and Head of Technology at Dataphone. “Axerra’s Pseudo-Wire expertise is essential to our plans to reach more customers with full-featured voice and data services.” Dataphone’s initial deployment includes large Pseudo-Wire gateways in several central offices, where each gateway can provide voice and data services to hundreds of business customers.

In addition to offering fixed-line voice and data business services, Dataphone plans to utilize Axerra’s Pseudo-Wire solutions to offer mobile backhaul services in the near future. Axerra Networks continues to lead the industry in live deployments of Pseudo-Wires in mobile backhaul applications. Axerra’s Pseudo-Wire solutions support all generations of mobile wireless services, preserve native signalling and features, enable bandwidth sharing, and provide the clock recovery capabilities that are required for reliable mobile services. AXN Pseudo-Wire Gateways and Access Devices support circuit emulation and VBR service emulation, including Frame Relay/HDLC, Ethernet, and even ATM services required for 2G, 2.5G, and 3G voice and data aggregation from a single box at the cell site.

“Dataphone and Promacom recognize the value of Pseudo-Wire technology to their current and future success,” said Denis Bambury, Axerra’s VP Sales – EMEA. “With Axerra’s Pseudo-Wire solutions, Dataphone will be well-positioned to provide PBX backhaul over Ethernet and xDSL as well as a host of additional revenue-generating services, such as mobile voice and data backhaul.”

Axerra Networks has garnered a number of 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, Red Herring magazine, in conjunction with Israel Venture Association, identified Axerra as one of the top three Israeli startups in telecommunications and a finalist in the Israeli Startup Contest 2006. Also in June, Axerra was named to FierceMarket's Fierce 15 list, honoring the company's innovations that benefit the wireless market.

About Dataphone
Dataphone is a full-service competitive operator resulting from the merger of Dataphone and Citylink in December 2005. Previously, Dataphone had operated since the mid-nineties as a corporate ISP featuring high-quality Internet connections with an SLA of 100% to all customers. Citylink has the most advanced nationwide MPLS backbone in Sweden and also has a big role providing telephony services. For more information, please visit: www.dataphone.net.

About Promacom
Promacom is a system integrator, active since 1991 delivering equipment and consultancy services in the broadband market with emphasis on triple-play services. Promacom works with many Metro operators, carriers and ISPs in Sweden and has partner agreements with many world leading manufacturers of both passive and active equipment. Promacom is based in Stockholm and owned by Teleste, an international technology group specializing in broadband communications solutions. For more information contact Oskar Folcker, +46 8 51494800, oskar@promacom.se or visit our homepage: www.promacom.se.

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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