INFINERA SELECTED BY THE CARPHONE WAREHOUSE FOR UK-WIDE.

NETWORK

The Carphone Warehouse (LSE:CPW), Europe's leading mobile phone retailer and one of the UK's leading Internet service providers, has selected Infinera (Nasdaq:INFN) for its national backbone network in the United Kingdom. Infinera's Digital Optical Network will allow The Carphone Warehouse to deliver the capacity and services needed by its rapidly growing customer base of residential and business broadband users, as well as supporting the company's strategic objective of becoming the UK's leading alternate fixed line provider.

Service, Speed and Flexibility

The Carphone Warehouse decided last year to build its own nationwide backbone network to carry data and voice traffic for its growing customer base. The Carphone Warehouse has selected Infinera as the optical platform for the network because of many key features including flexibility, speed, and cost-effectiveness.

"The Carphone Warehouse has one of the most aggressive growth plans of any service provider in the world today," said Neil McArthur, CEO of The Carphone Warehouse Networks. "We chose Infinera for our national backbone because it allows us to achieve far better economics and scale. More importantly it gives us control of our own destiny when it comes to rolling out high-capacity, high-quality services when and where our customers need them."

The Infinera Digital Optical Network enables The Carphone Warehouse to deliver any service to any point on its network without the need for expensive and time-consuming optical fine-tuning. Infinera's interchangeable tributary modules provide the flexibility to add new services or quickly change the services provisioned on existing line-side capacity. Infinera networks offer industry-leading speed of service delivery due to the digital architecture and the software intelligence in the Infinera IQ(tm) network operating system. Speed of installation and speed of adding new services are critical success factors for The Carphone Warehouse, which is supporting a rapidly-growing customer base, and a customer base which is rapidly embracing new applications such as the delivery of television programming in new and more consumer-friendly forms.

"Broadband is a Right"

Founded in London in 1989, The Carphone Warehouse is the world's largest independent retailer of mobile phones, with 2337 retail stores in 11 countries, including 786 in the UK. The Carphone Warehouse's revenue for the six months to September 2007 was 2.14 billion pounds sterling ($4.43 billion). After launching residential landline telephone service in the UK in 2003, The Carphone Warehouse shook up the industry in April 2006 when it launched free TalkTalk broadband, which offered British residential households broadband Internet service, unlimited nationwide voice service and unlimited international landline calls to 28 countries, all for 20.99 pounds ($43.45) per month. "Broadband is a right, not a privilege," said The Carphone Warehouse CEO Charles Dunstone at the launch. Last year, The Carphone Warehouse acquired AOL's UK customer base for residential broadband. Last month, The Carphone Warehouse reported it had 2.5 million broadband subscribers, making it Britain's third-largest Internet service provider.

Army of Engineers Not Required

The Infinera network also enables The Carphone Warehouse to reap the benefits of a cost-effective nationwide network with optical capacity in 100 Gigabit/second (Gb/s) increments. The Infinera DTN delivers 100 Gb/s of optical capacity on every line card, compared to just 10 Gb/s or 40 Gb/s from competitor optical systems. In addition, the simplicity of installation and operation of Infinera's digital networks means that an Infinera network can be operated by a significantly smaller engineering staff than required by traditional DWDM networks.

For The Carphone Warehouse Networks' Head of Transmission Paul Jackson, the ability to deploy the Infinera network without hiring a large team of optical transmission specialists was a key advantage. "An Infinera Digital Optical Network can be planned, installed and operated with speed and simplicity comparable to an IP network," said Mr. Jackson. "We considered conventional optical gear from other vendors, but the operating costs alone would have been a show-stopper. Infinera's digital architecture allows us to deliver the capacity we need without creating additional layers of complexity in our network. The embedded GMPLS software intelligence also allows us to extend our existing MPLS capabilities across the optical core -- and that's still at the PowerPoint stage for most other optical vendors."

"We're delighted that The Carphone Warehouse has selected Infinera for its national backbone," said Infinera CEO Jagdeep Singh. "The Carphone Warehouse is an ambitious company with aggressive growth plans, and willing to think out of the box to solve problems and deliver new services to its customers, and these are characteristics that we can identify with very strongly."

The Infinera DTN is a Digital ROADM for long-haul and metro core networks, combining high-capacity DWDM transport, integrated digital bandwidth management, and GMPLS-powered service intelligence in a single platform.

About Infinera

Infinera provides Digital Optical Networking systems to telecommunications carriers worldwide. Infinera's systems are unique in their use of a breakthrough semiconductor technology: the Photonic Integrated Circuit (PIC). Infinera's systems and PIC technology are designed to provide optical networks with simpler engineering and operations, faster time-to-service, and more flexible networking.

For more information, visit www.infinera.com or call 408/572-5213.