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Calix to Acquire GPON Leader Optical Solutions

Stacy Campbell-Kraft

Calix to Acquire GPON Leader Optical Solutions

Nov 9, 2005 – Addition of Industry’s Most Widely Deployed GPON Solution Gives Calix Strong Market Lead

MINNEAPOLIS — Optical Solutions Inc. announced today that it will be acquired by Calix, the industry leader in broadband loop carrier products. The addition of Optical Solutions’ standards-based, field-proven GPON products to the Calix portfolio of access solutions creates a market-leading access powerhouse.

According to Infonetics Research, Calix and Optical Solutions occupy the #1 positions in their respective markets. In the second quarter of 2005 Calix claimed the top slot for broadband loop carrier (BLC) shipments for the eighth straight quarter while Optical Solutions continued its overwhelming lead in FTTP GPON deployments.

The acquisition of Optical Solutions by Calix delivers a number of key benefits to service providers. First, it provides a field-proven solution addressing rapidly growing GPON FTTP deployments today. The acquisition also yields a full line of standards-compliant optical network terminals (ONTs) that address residential, business, and multi-tenant applications. It accelerates GPON availability on the widely deployed Calix C7 multiservice access platform (MSAP). Finally, it delivers a wide range of expertise dealing with commercial FTTP deployments.

According to Calix president and CEO Carl Russo, “As service providers deliver a broader set of information, communication, and entertainment services, they are employing diverse broadband access technologies to provide the needed capacity and functionality. Among these, GPON is rapidly becoming a strategic choice. Bringing together these two high-growth companies allows us to deliver solutions to our customers that fully address this diverse range of approaches.”

Optical Solutions president and CEO Mike Dagenais adds, “Joining Calix, a bellwether in the broadband access market, makes enormous sense for Optical Solutions. Together, with over 70 production IPTV deployments and more than 175 revenue-generating FTTP customers among our joint installed base of 300 service providers, we are able to deliver a wide range of field-proven solutions.”

To date, Calix has shipped over 1.2 million ports on more than 6,500 C7 platforms into 190 service providers throughout North America. Minneapolis-based Optical Solutions, with over 140 customers serving close to 100,000 FTTP subscribers, has more production GPON deployments than all other suppliers combined.

About Calix
Calix is a leading supplier of packet-based access solutions that enable carriers to deliver information, communication, and entertainment services to business and residential subscribers. Calix solutions help carriers transform their networks to support IP services with maximum flexibility, providing seamless support for traditional and next-generation services in a common platform. Calix has deployed its solutions in over 190 service provider networks throughout North America. More information about Calix can be found at www.calix.com.

About Optical Solutions
Optical Solutions is accelerating the transition from legacy to IP-based services in the last mile. The FiberPath? fiber-to-the-premises (FTTP) system revolutionizes the delivery of IPTV, and leads the industry in triple-play voice, video and data deployments. Optical Solutions’ family of products uses industry standard GPON to deliver incomparable bandwidth to homes and the broader community. Optical Solutions’ primary customers are independent operators and major system suppliers. For more information please visit www.opticalsolutions.com.

This press release contains forward-looking statements that are based upon management’s current expectations and are inherently uncertain. Forward-looking statements are based upon information available to us as of the date of this press release and we assume no obligation to revise or update any such forward looking statement to reflect any event or circumstance after the date of this release. Actual results and the timing of events could differ materially from current expectations due to a number of factors.

The acquisition of Optical Solutions by Calix is subject to the satisfaction of customary closing conditions.