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Occam Networks Announces Continued Delay in Filing Form 10-K,
Provides Business Update

SANTA BARBARA, California – April 17, 2007 – Occam Networks, Inc. (NASDAQ: OCNW) announced today that it will not file its Annual Report on Form 10-K for the fiscal year ended December 31, 2006 by today's 15-day extended filing deadline.  As previously disclosed, the Company's Audit Committee is reviewing the Company's commitments to provide customers with software, hardware and software maintenance, hardware and software upgrades, training, and other services in connection with customer purchases of the Company's network equipment.  The Audit Committee is considering whether these commitments impact revenue recognition and the adequacy of the Company's internal controls relating to the documentation of customer commitments as part of the terms and conditions of sale.  The Company will file its Form 10-K as soon as practicable following completion of the review described above and consultation with its independent registered public accounting firm.  Occam incurred approximately $350,000 in professional fees and expenses in connection with the Audit Committee's review during the first fiscal quarter ended March 31, 2007, and expects that it will incur significant professional fees and expenses in the second quarter.

Occam also provided the following updates with respect to the development of its business during the first quarter:

  • Occam gained 24 new customers, representing its largest one-quarter increase on record. 
  • Customer ordering activity was strong during the quarter.
  • Occam observed continued movement by customers to VoIP and softswitching architectures.
  • Occam believes that IOCs are continuing to make capital expenditures in both copper and fiber products, taking advantage where applicable of RUS and other funding mechanisms.

About Occam Networks Inc.
Occam Networks' broadband loop carrier (BLC) solutions enable telecommunications and other service providers to offer innovative voice, broadband, IPTV and full triple play services over copper or fiber. Occam solutions give telco service providers the flexibility and scalability to continuously expand their offerings, with simplicity of service deployment. Occam's BLC products and services are currently deployed at over 200 service providers in North America. For more information, please visit www.occamnetworks.com.

Cautionary Note About Forward-Looking Statements

Portions of this press release may contain forward-looking statements regarding future events or the future performance of Occam Networks, including statements predicting increased adoption of products and technologies offered by Occam and the willingness and ability of our customers to purchase additional Occam products and upgrade their product offerings. Forward-looking statements involve risks and uncertainties, which could cause actual results to differ materially from any future performance suggested in such statements. In particular, rapidly changing technologies and market conditions may require changes to Occam's products, and the willingness of our customers to purchase upgraded products such as Triple Play will depend in part on customers' existing network configurations and any incremental costs associated with implementing upgrades. 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.


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Contact:

Kirsten McGregor
Occam Networks
1.805.692.2917
kmcgregor@occamnetworks.com

Tim Johnson
Stearns Johnson Communications
+1 415.397.7600
tjohnson@stearnsjohnson.com

Occam Networks is a registered trademark of Occam Networks Inc. in the United States and/or other countries.  All other trademarks mentioned are the property of their respective owners.