Seven Iowa Telcos Select Occam Networks’ BLC 6000 System to Offer

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Occam Networks Selected by Prairie Grove Telephone for Greenfield Deployment

Telco Calls First Deployment "Tip of the Iceberg"

SANTA BARBARA, Calif. – July 18, 2007 – Occam Networks® Inc. (NASDAQ: OCNW), a leading supplier of innovative Ethernet and IP-based loop carrier equipment to telecommunications companies, announced today that Prairie Grove Telephone Company, an Arkansas telco, has selected Occam Networks to upgrade its network to Active Ethernet.

"We looked at approximately six access equipment companies and selected Occam. Their approach is based on the simplification of our network, ease of use and long-term value," said John Morano, central office supervisor at Prairie Grove. "Active Ethernet is the most effective technology for us to upgrade and expand our network and the services we offer our subscribers."

Prairie Grove will deploy a combination of Occam Fiber, DSL and T1 CES blades, on a 10 Gig backbone network that will feed 55 wire centers. The five-year goal is to bring ultra high bandwidth to 100 percent of the telco's customer base to supply any and all services its subscribers will need or want in the future.

Prairie Grove serves approximately 10,000 subscribers, providing voice and broadband data products today, and plans to offer video in the future. Prairie Grove Telephone was founded in 1897 and serves west Washington County. Their network consists of five loops. This project will upgrade a portion of one of those loops. "We plan to continue to upgrade our entire network with Occam equipment in the future," Mr. Morano added.

"Prairie Grove demonstrates the benefits of our focus on simplicity and ease of deployment. Our BLC products fit into their network, enabling them to complete their upgrade in stages," said Nathan Harrell, vice president of sales for Occam. "We're eager to work with them to help Prairie Grove give their subscribers the best broadband service in Arkansas."

About Prairie Grove Telephone Company
The Prairie Grove Telephone Company is family-owned and operated and has been since its incorporation in 1906. Today, the company is the largest family-owned and operated telephone company in the state of Arkansas and, as in the past, their customers' well-being is the first priority of the company.

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 225 service providers in North America. For more information, please visit www.occamnetworks.com.

Cautionary Note Regarding 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 and Occam BLC 6000 are either registered trademarks or trademarks of Occam Networks Inc. in the United States and/or other countries. All other trademarks mentioned are the property of their respective owners.