Press Release

Laurel Networks® Delivers "Drop-in" IP Video Routing Solution™

Allows DSL access providers to increase revenues per subscriber and broaden their customer base

Pittsburgh, PA, May 2, 2005 - Laurel Networks®, Inc. today announced a new "drop-in" IP Video Routing Solution™ designed to meet the needs of DSL access providers who want to begin offering video services. Based on Laurel's widely deployed ST200™ broadband services router, the IP Video Routing Solution enables highly-reliable broadcast IPTV and VoD (Video on Demand) services alongside high-speed Internet and voice services. Laurel's drop-in Video Routing Solution not only allows instant delivery of video over existing ATM-based DSL aggregation networks, it supports subscriber management and gigabit Ethernet port density to allow transition to higher-speed, Ethernet-based DSL network architectures.

"With local voice services coming under increasing competitive pressure, ILECs and PTTs are seeking a path to continuously increase average revenue per user (ARPU) on their IP broadband networks through on-demand IP multimedia services. Our drop-in IP Video Routing Solution enables the first step along the path by breaking through the cost, capacity, and reliability barriers of introducing video on legacy B-RAS platforms," said Steve Vogelsang, vice president of marketing. "Once in place, our ST-series™ broadband service routers create a dynamic IP communication port to each subscriber enabling virtually unlimited service expansion."

As the foundation for the new "drop-in" IP Video Routing Solution, Laurel's ST200 broadband services router provides the high scalability needed to reliably meet the bandwidth demands of delivering video services. Laurel has enhanced this platform with a new Ethernet-optimized network processing blade that can deliver 10 gigabits per second of wire-speed performance and a complementary high-density 10-port gigabit Ethernet physical interface card. As DSL access networks transition from ATM to IP, Laurel's gigabit Ethernet port density will allow direct connectivity to new Ethernet-based DSLAMs as well as provide high-speed connectivity to the IP backbone. For service providers who want to consolidate their networks immediately, the B-RAS capabilities of the Laurel platform allow it to be deployed as a combined video router/Internet service platform.

The Laurel IP Video Routing Solution also features the latest release of Laurel's ShadeTree™ system software. Included in the new ShadeTree 3.2 release is support for automated discovery, authentication, and network configuration of Ethernet home media devices such as IPTV set-top boxes. These enhanced subscriber management features are designed to simplify video delivery to the home. They also allow service providers to easily migrate Internet subscribers and other services onto a converged broadband services router.

"A survey we conducted at CeBIT this year found that within the next three years industry professionals expect to see worldwide deployment of IP-based networks designed for video services. The technology we're introducing today will help service providers build IP networks capable of reliably and cost-effectively delivering video to any number of subscribers," said Vogelsang.

The Ethernet-optimized network processor blade (NPB-E), 10-port Gigabit Ethernet physical interface card, and Shadetree 3.2 trials are scheduled in 2Q, with general availability scheduled for 3Q 2005.

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.