ZYXEL WINS POWERLINE DEVICES CONTRACT FROM CHUNGHWA TELECOM.

ZyXEL Communications, Anaheim, Calif. the world's leading broadband access solutions provider, has won the procurement tender of Chunghwa Telecom's Digital Home project. Chunghwa Telecom (CHT) serves over 12.7 million fixed lines throughout Taiwan and connects 4.3 million broadband access customers. ZyXEL has been a frequent winner of CHT's Central Office and Customer Premise Equipment (CPE) tenders including a recent 480,000 port VDSL2 tender. ZyXEL has again proven its competence in the home market as a result of to its superior technology and product quality. The success with CHT's tender indicates the effectiveness of ZyXEL's comprehensive end-to-end solutions in generating more profits for service providers and providing additional value beneficial in a difficult economy.

Chunghwa Telecom's MOD (Media-on-Demand) service shows increasing popularity in Taiwan with the company expecting to reach 1.2 to 1.4 million users early this year -- surpassing its first million customers in 2008. Every MOD customer receives a set-top box required for service. With this latest tender CHT will also provide ZyXEL Powerline network kits. ZyXEL's Powerline network kits enable users to link their Internet connection to convenient locations anywhere within the home to watch MOD programs at their leisure.

In addition to home power lines, the ZyXEL equipment included in this tender also delivers data through coax cables providing multiple ways for extending the network connection from home broadband routers. "The worldwide demand for Powerline communications is rising and we expect this technology to play a dominant role in the no-new-wire networking arena," said Dr. Yuh-Long Chen, ZyXEL's president. "The Powerline solution is fast, easy-to-use and will add a fat pipe for streaming multimedia video into homes. With the successful Powerline deployment in CHT's MOD project, we are confident that the cooperative model and experience obtained will benefit other worldwide digital home-related projects."

Availability

ZyXEL offers a complete line of HomePlug AV Powerline products including the award winning ADSL2+ gateway, adapters, WiFi extenders (AP), media adapters and power strip. All Powerline products are available commercially. Please call ZyXEL at 1-800-255-4101 or visit http://www.us.zyxel.com for more information about our full range of networking products.

About ZyXEL Communications

ZyXEL offers reliable, end-to-end, fully-converged solutions for delivering broadband access, services and applications from the central office into the home. Our desire to build exactly what the carrier wants, our talent to deliver it, and our commitment to lifecycle support makes ZyXEL a valued and dependable business partner. With North American headquarters in Anaheim, California, ZyXEL's affordable, high-performance products include MSANs, xDSL DSLAMs and CPEs, cable access, broadband-sharing, WiMAX, VoIP and connected home solutions for a wide range of deployment scenarios. ZyXEL customers are supported by a trusted and reliable team that enables them to work without interruption.

ZyXEL's largest customers include: Sprint, Verizon, Time Warner, Charter, EarthLink, Chunghwa Telecom, Deutsche Telekom, France Telecom, Telefonica Brazil, Telia and many others. North American distributors include Embarq Logistics.

For more information, visit the company's website at http://www.us.zyxel.com or call 714/540-1030.

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