Press Release

Grande Communications Selects Laurel Solution for Massive Fiber-to-the-Home (FTTH) Deployment

Platform will Deliver Advanced Broadband Services to Millions of Residences and Businesses in the Lone Star State

April 5, 2005 - Pittsburgh, PA - Laurel Networks, Inc. today announced that Grande Communications, the largest provider of bundled broadband services in Texas, has deployed a Laurel solution to support the rollout of fiber-to-the-home technology to multiple locations throughout the state of Texas. The Laurel ST50™ Broadband Routing Platform provides the flexibility required by Grande to economically and reliably deliver a comprehensive suite of advanced broadband services to include data, voice, and video.

Grande Communications is a Texas-based communications company that provides residential and business customers with high-speed Internet, local and long-distance telephone, digital cable and wireless security services over a single network. The company is building a new, high capacity, fiber-optic network from the ground up, using the latest technological advancements in broadband communications.

"By deploying fiber-to-the-home, we can build our network much faster, use 80 percent less equipment and install only one line to the home instead of two," said Grande President Joe Ross. "Laurel uniquely addressed our business needs by adding a feature to the ST50 Broadband Routing platform that allows us to recognize and separate high-speed data traffic from set-top box (digital receiver) traffic. The flexibility of the ST200 platform combined with Laurel's responsiveness made the broadband-based services we are able to offer our customers virtually unlimited."

The Laurel ST-series broadband platform enables broadband service providers to cost-efficiently evolve beyond basic Internet service to revenue boosting, added-value services such as voice over IP, video-on-demand and IP VPNs. The ST-series includes the high bandwidth-per-subscriber, advanced QoS, carrier-class availability, unlimited flexibility, and integrated routing and switching required for complete and reliable broadband service delivery.

Laurel vice president of marketing and co-founder, Steve Vogelsang, said, "This deployment will push Grande Communications to the forefront of delivering the high-throughput services desired by today's network-savvy, yet budget-conscious consumer. And our work with Grande demonstrates Laurel's ability to understand the unique challenges of each individual customer and our willingness to work with service providers to develop a customized solution that will meet their specific business needs and requirements for building a future-proof network."

About Grande Communications
Headquartered in San Marcos, Grande Communications is building a deep-fiber broadband network to homes and businesses from the ground up. Grande's 800 employees deliver high-speed Internet, local and long-distance telephone, digital cable television and wireless security services over its own advanced broadband network to communities in Texas. Grande's bundled service area includes portions of Austin, Corpus Christi, suburban northwest Dallas, Midland, Odessa, San Antonio, San Marcos, and Waco.

Grande's Network Service products provide one of the country's most advanced data, voice, and private line/metro networks to inter-exchange carriers, Bell operating companies, CLECs, ISPs and other next-generation service providers. Grande's voice network terminates traffic worldwide, offering both traditional and IP-based services; its managed modem network provides coverage nationwide; and its private line and metropolitan networks provide optical services in Texas and surrounding states. Grande's 3,100-fiber-mile network incorporates SONET-based technology for protection, diversity and optimal performance. For more information, visit www.grandecom.com.

About Laurel Networks
Laurel Networks delivers routing technology that helps service providers transition from the standard Internet-only service delivery model into full-fledged triple-play networks. Designed for enhanced network scalability, Laurel's ST-series ™ routers allow service providers to add advanced broadband applications, like video on demand or voice over IP, without incremental cost as the subscriber base grows.

Headquartered in Pittsburgh, Pennsylvania, Laurel operates sales and support facilities across the US, Europe and Asia. Its routers are deployed by some of the world's largest service providers including: Level 3 Communications, KT, Dacom, and Arsys. The company also maintains strategic partnerships with CIENA, a leading global provider of innovative network solutions, and with Marconi, a global telecommunications equipment, services and solutions company. For more information, visit www.laurelnetworks.com.

Media Contacts:
Steve Vogelsang
Laurel Networks, Inc.
412.809.4300
sjv@laurelnetworks.com

Brian Dolezal
Grande Communications
512.344.2035
bdolezal@tateaustin.com