HATTERAS NETWORKS TEAMS WITH TELEKENEX FOR MID-BAND ETHERNET SERVICE LAUNCH

Combined solution from Hatteras and Cisco enables service providers such as Telekenex to seamlessly deploy a full suite of Ethernet services

RESEARCH TRIANGLE PARK, NC, FEBRUARY 26, 2007 - Hatteras Networks™, the Mid-Band Ethernet™ services specialist, today announced that Telekenex is deploying a combined end-to-end solution from Hatteras Networks and Cisco to support its innovative Managed Ethernet Service. Telekenex is deploying the combined solution for Mid-Band Ethernet services, fully utilizing the advanced Ethernet service capabilities of the Cisco IP NGN architecture to deliver layered-multiple services including Internet Access, Private Line and Voice over IP (VoIP), over a single Ethernet access facility.

"The solution from Hatteras Networks and Cisco enables Telekenex to extend business-grade Ethernet technology to all customers at all locations over existing copper infrastructure, a key advantage as we roll out our Managed Ethernet service network-wide," said Brandon Chaney, Chief Executive Officer for Telekenex. "Hatteras and Cisco provide a complete end-to-end solution that forms the foundation of Telekenex's compelling last-mile offering, designed to provide our customers with groundbreaking network performance and scalability."

Hatteras Networks has performed extensive interoperability testing with Cisco 7600 Series routers, Catalyst® 6500 Series switches and ONS 15454 optical platforms to optimize a solution that will deliver a seamless end-to-end Mid-Band Ethernet solution to carriers around the world. This initiative enables carriers to quickly launch revenue-generating Mid-Band Ethernet services. Telekenex, which was recently designated a Cisco Powered Program member, has built a Metro Ethernet solution from scratch, incorporating technology from both Hatteras Networks and Cisco. The network was architected with collaborative support from both companies.

"Cooperation between Hatteras and Cisco provides the customer with peace of mind," explained Kevin Sheehan, president and CEO of Hatteras Networks. "The Hatteras Networks platform is designed to grow with carriers like Telekenex as they bolster their network offerings with richer service offerings. Carriers are able to multiply their number of potential customers by utilizing a combined offering from Hatteras and our partners."

Telekenex is offering its customers a full line of services, including Internet access, Private Line Services, MAN and VoIP, pursuing deployments in multiple west-coast markets. Hatteras Networks' HN4000 and HN400 products provide VPN as well as QoS capabilities for prioritized voice services for Telekenex. The Hatteras platforms extend the reach of native Ethernet services to businesses lacking direct access to fiber. Customers are connected over multiple copper pairs to Hatteras HN4000s which are then aggregated to Cisco 7600 Series Routers, delivering an advanced Ethernet offering for businesses served by either copper or fiber facilities.

"Industry-leading Carrier Ethernet solutions from Cisco, combined with Hatteras Networks' Ethernet edge solutions, give service providers an opportunity to increase revenue and lower expenses by delivering Mid-Band Ethernet services," said Vic Northrup, vice president of U.S. service provider sales for Cisco "This solution will help enable our customers and partners to close the Ethernet services gap between fiber-based Metro networks and the customer premise."

About Telekenex

Telekenex is a business-grade IP service provider with a robust private international network and innovative managed solutions, including Hosted VoIP, MPLS + Internet, Managed Ethernet and Data Center. For more information about Telekenex, visit: www.telekenex.com or email press@telekenex.com.

About Hatteras Networks

Hatteras Networks is redefining the way carriers think about Ethernet services. Hatteras Networks' Ethernet service edge solutions are leading Service Providers worldwide to a $15 billion expansion of the Metro Ethernet market, which had previously been limited to the fiber footprint. Historically, T1s and E1s have been the fundamental building block for voice and data business services. Now, Service Providers can cost-effectively offer up to 45 Mbps Mid-Band Ethernet services over existing copper facilities, enabling businesses to migrate from legacy Frame Relay, ATM and T1/E1 connections to transparent Ethernet services for voice and data business connectivity, infrastructure backhaul and mobile wireless backhaul solutions.

Already deployed on five continents, Hatteras Networks solutions are enabling a market expansion for carriers that are as significant for business services as "triple play" is for residential. For more information, visit www.hatterasnetworks.com.

Media Inquiries:

Richard M. Williams
Connect2 Communications (for Hatteras Networks)
919-554-3532
rmwilliams@connect2comm.com