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Occam Networks Broadens Functionality of BLC 6000 System with a Rich Set of New Software Features

First Standards-Based Solution for ADSL2 Plus Bonding, Reach Extended and Symmetrical Services

SANTA BARBARA, Calif. – May 11, 2005 Occam ® Networks Inc. (OTCBB: OCCM) , a supplier of innovative Ethernet- and IP-based loop carrier equipment to telecommunications companies worldwide, today announced the availability of BLC System Software, Version 4.3, which includes a variety of new software features for the BLC 6000 System. The software upgrade includes support for several new ADSL2Plus features including bonding, Annex M, Annex L and Seamless Rate Adaptation (SRA), as well as other new features. The new software provides Telcos with the first commercially available standards-based implementation of ADSL2 Plus bonding, Reach Extended and Symmetrical Services. Version 4.3 is currently in field tests and is expected to be available in early July 2005.

“Occam has focused on delivering a set of features in Version 4.3 that can enhance and broaden the services our customers offer their subscribers – the kind of services that translate into revenue, ” said Russ Sharer, vice president of sales and marketing for Occam. “We are providing Telcos with the opportunity to increase their revenues easily while continuing to deliver on our goal of simplifying the access network. ”

The new ADSL2Plus software features are based on the Broadcom ® BladeRunner TM chipset and include the following:

  • ADSL2Plus bonding : Bonding provides the ability to bond or combine two ADSL2Plus channels to deliver a single high-speed data stream over a DSL line. This data stream provides an aggregate data rate of more than 48Mbps. Bonding increases the number of subscribers who can receive IP TV service in a Telco's customer service area (CSA) area by 50 to 100 percent. Occam ADSL2Plus bonding complies with the January 2005 ITU G.998.1 (G.bond-ATM) standard and is the first standards-based implementation available for commercial use. It is compatible with the Comtrend NexusLink™ Residential Gateway (model number CT-5622).
  • ADSL2Plus Annex M : Annex M doubles upstream data rates. With this new feature, Telcos can create and offer business subscribers an approximately 2.5Mbps symmetrical data service providing with businesses a low-cost alternative to T1 or G.SHSDL data services. This feature can be implemented from the BLC 6000 on a port-by port basis without any additional hardware for delivering symmetrical service. Annex M can be combined with the ADSL2Plus bonding feature to enable Telcos to offer standards-based Ethernet over Copper services in bandwidth increments of 2.5Mbps. ADSL2Plus Annex M is significantly more ADSL2Plus binder compatible than G.SHDSL, creating less cross talk and resulting in more stable connections. It is compatible with a variety of ADSL2- and ADSL2Plus-compliant modems, including Thomson SpeedTouch and Comtrend Corporation modems.
  • ADSL2Plus Annex L : Annex L, also known as Reach Extended ADSL, extends DSL line reach, making it possible for Telcos to offer DSL service to subscribers who are more than 18,000 feet from the BLC 6000 System. Occam ADSL2Plus Annex L is a true standards-based implementation of the protocol, which eliminates binder incompatibilities found in proprietary solutions. It is compliant with a broad range of ADSL2- and ADSL2Plus-compliant modems.
  • ADSL2Plus Seamless Rate Adaptation (SRA) : SRA software allows modems to make seamless data transfer rate changes to avoid dropping a connection. Modems are affected by cross talk from adjacent lines, as well as by other interference such as temperature changes and radio signals. Any interference on the connection can cause a modem to retrain on another connection and drop the existing connection. SRA makes dynamic data transfer rate changes to accommodate temporary noise conditions on the line thus preventing dropped connections. Occam ADSL2Plus SRA is compatible with a wide range of ADSL2- and ADSL2Plus-compliant modems, including Thomson SpeedTouch and Comtrend Corporation modems.

These features are available on all Occam BLC 6000 ADSL2 / ADSL2Plus and combination POTS and ADSL2 / ADSL2Plus blades.

Other new features in Version 4.3 of the Occam BLC System Software include expanded support for the PPP Multilink Protocol (MLPPP) in copper-fed remote terminals and the recently announced Emergency Stand Alone (ESA) system. Expanded support for MLPPP enables Telcos to provide data and voice over IP (VoIP) service to subscribers who are served from copper-fed remote terminals in which fiber cannot be installed. With the ESA system the BLC 6000 is the first broadband loop carrier to provide E-911 and local station-to-station calling during network or equipment failures.

About Occam Networks Inc.
Occam Networks Inc. develops and markets innovative Broadband Loop Carrier networking equipment that enable telephone companies to deliver voice, data and video services. Based on Ethernet and Internet Protocol (IP) technologies, Occam's equipment allows telecommunications service providers to profitably deliver traditional phone services, as well as advanced voice-over-IP, residential and business broadband, and digital television services through a single, all-packet access network. Occam is headquartered in Santa Barbara, Calif. Additional information can be found at www.occamnetworks.com.

Portions of this press release may contain forward-looking statements regarding future events or the future performance of Occam Networks. Forward-looking statements involve risks and uncertainties, which could cause actual results to differ materially from any future performance suggested in such statements. Rapidly changing technologies and market conditions may require changes to Occam's products. Occam does not undertake any obligation to publicly update any forward-looking statements as a result of new information, future events or otherwise. Please also refer to the company's most recent quarterly report on Form 10-Q, annual report on Form 10-K and other filings with the SEC. These filings contain and identify other important factors that could cause actual results to differ materially from those contained in any forward-looking statements.