Teknovus and ZyXEL`s 10G-EPON Selected by Taiwan`s Chunghwa Telecom

Represents Industry`s First Open Bid for 10G-EPON FTTx Solutions
PETALUMA, Calif.--(Business Wire)--
Teknovus, the leading provider of Gigabit Ethernet Optical Network (G-EPON)
chipsets for deployment of triple-play services in residential and business
broadband access networks and ZyXEL, the leader in broadband access solutions,
announced that Chunghwa Telecom (CHT) has selected Teknovus and ZyXEL`s 10G-EPON
solution for testing by CHT`s Lab. CHT began FTTx deployments in 2007 based on
Teknovus` EPON chips, and is the first carrier worldwide to complete a formal
evaluation and selection process for the next generation in PON solutions -
10G-EPON.

Today, CHT supports more than 1.1 million FTTx subscribers, representing 28% of
all broadband subscribers. The carrier has plans to reach 3.5 million FTTx
subscribers by 2011. CHT continues to add subscribers to its IPTV service
"Multimedia-on-Demand," with almost 700,000 subscribers at the end of April
2009.

Teknovus was selected along with equipment vendor ZyXEL Communications. ZyXEL is
a major provider of FTTx communications equipment around the globe, including
sales to CHT and other carriers in Southeast Asia, North America and Europe.
ZyXEL will provide 10G-EPON systems along with 1G-EPON systems, to demonstrate
the ease of bandwidth upgrades on a Teknovus-based EPON FTTx network.

"CHT is a leader in deploying next generation FTTx networks, enabling advanced
triple-play residential services," stated Ping Chin Lee, VP of ZyXEL COE Product
Business Unit. "Teknovus is the leading 10G-EPON silicon solution provider and
with the scalability and flexibility of ZyXEL`s EPON systems, we meet carriers`
requirements for FTTx networks. With ZyXEL/Teknovus 1G/2G/10G EPON systems, CHT
can preserve its existing FTTx infrastructure while enhancing its residential
service models, expanding support for business services, and providing valuable
3G/4G cellular backhaul transport over a homogeneous network."

CHT began evaluation of next-generation FTTx options in early 2009. Key
selection criteria included 1G/2.5G/10G coexistence, advanced traffic
management, guaranteed end-to-end QoS (Quality of Service) for all subscriber
types (single-family units, MDUs, small businesses, large enterprises), and low
power consumption. Teknovus and ZyXEL`s 10G-EPON solution met all of CHT`s
requirements and will be delivered in July, 2009.

About Teknovus

Teknovus is the leading developer and supplier of access chips and embedded
software for the FTTx market, supporting EPON (Ethernet Passive Optical
Networking) at 1G, 2.5G and 10G speeds. Teknovus products are deployed by more
than 35 service providers around the world, enabling the delivery of advanced
triple-play services, including IPTV, via optical fiber networks. Teknovus
products support the full FTTx network, covering the Central Office (OLT) and
the Customer Premises (ONU). Teknovus is headquartered in Petaluma, California
with sales, design and support centers in Tokyo, Seoul, Beijing, Shanghai, Hong
Kong, San Jose and Boston. To learn more about Teknovus, visit www.teknovus.com.

Teknovus and Turbo-EPON are trademarks of Teknovus.Other names and brands may be
claimed as the property of others.

About ZyXEL Communications

ZyXEL Communications Corp., founded in 1989 and headquartered in Taiwan, is the
leading provider of complete broadband access solutions. As one of the early
modem manufacturers, ZyXEL has undergone many transformations in the fast-paced
networking industry. Today, ZyXEL is one of the few companies in the world
capable of offering complete networking solutions of Telco, SME/Enterprise, and
Digital Home for a wide range of deployment scenarios. Telco solutions include
Wired and Wireless Access Network Equipments, Networking Customer Premises
Equipments, and Carrier Switches. SME and Enterprise solutions include Unified
Security Gateway, LAN Switches, WLAN, and IP Telephony. Digital Home solutions
include Network Connectivity Devices and Multimedia Solutions.

The company has 3200 employees and distributors in 70 countries, reaching more
than 150 regional markets. The ZyXEL Communications Corp. includes 32
subsidiaries and sales offices and two research and development centers
worldwide. For more information, visit the company's Website,
http://www.zyxel.com.

Teknovus
Julie Kunstler, 650-862-7046
julie.kunstler@teknovus.com

Copyright Business Wire 2009