April 7, 2008

Xtera’s end-to-end next generation communication solutions are greatlyenhanced with ROADM & packet optical networking technology from Meriton

Dallas, Texas; London, UK; and Ottawa, Canada – (April 7, 2008) – Xtera Communications today announced the acquisition of Meriton Networks. With the addition of Meriton’s award-winning Metro Optical Networking portfolio, which addresses both the Packet Optical Edge/Metro and Metro/Regional ROADM market, Xtera offers network operators a new solution partner for end-to-end next generation optical networking solutions.Xtera Communications is a privately-held company that supplies Optical, IP performance and service solutions to terrestrial and sub-sea global service providers with development, sales and support offices around the world.

Xtera has been strategically extending both its product portfolio and global reach to complement its existing core business with a number of previously announced acquisitions. The acquisition of Meriton is the latest move in the company’s announced growth strategy of strengthening its global position in the converged IP and optical communication market and provides the company with:

•    A carrier class metro transport portfolio that delivers both cross-connect and ROADM switching, together with sub-wavelength grooming capabilities

•    Proven R&D expertise in innovative Packet Optical Networking/Carrier Ethernet Transport and ROADM technology

•    A global Tier 1 and Tier 2 service provider customer base

•    Increased global footprint in the areas of R&D, sales and support

“As with our previous acquisitions, Meriton brings advanced technologies, additional customers, and geographical diversity, along with improved economies of scale, across our business,” said Xtera CEO Jon Hopper. “With this acquisition, Xtera Communications has moved significantly closer toward our goal of being a leading provider of converged Ethernet/IP and Optical Transport solutions.”

"Optical networking is showing significant growth in all markets across the globe," said Michael Howard, Principal Analyst at Infonetics. "The continuing traffic demands for increased capacity are driving the need for new platforms that converge packet and optical layers to reduce cost and complexity in next generation transport networks. Xtera's acquisition of Meriton Networks creates a wide product portfolio that provides reach from the metro access edge through the ultra long haul."

About Xtera Communications

Xtera Communications specializes in network infrastructure that delivers the highest capacity, reach and density. Our long-haul, Submarine, Metro and WAN technologies together with our deployment expertise drive customer success and long term value.

Xtera offers an extensive portfolio of Optical Transport solutions for long-haul, regional, metropolitan and sub-sea networks, and WAN Traffic Management solutions for both enterprise and telecom companies.

With deployments in four continents, Xtera’s Optical Transport portfolio helps service providers worldwide reach new markets via new deployments, and extends the life of their existing network assets with cost-effective upgrades. Xtera‘s innovative Traffic Management solutions offer customers the best price/performance in network optimization.

Xtera delivers compelling advantage to its customers by maximizing network capacity, reach and value.

For more information, please visit www.xtera.com