October 24, 2007

Allen, Texas – (October 24, 2007) – Xtera Communications announced today that it has acquired AscenVision Technologies.

AscenVision is a developer of IP Networking solutions. The company was headquartered in San Jose, Ca. with R&D facilities based in Taipei, Taiwan as well as Beijing and TianJin, China and will now become the IP Networking Division of Xtera Communications. AscenVision provides traffic management solutions that more effectively utilize available bandwidth, significantly improving the availability, reliability and manageability of these networks.

Xtera Communications is a privately held network equipment and services company, and a leading provider of optical networks for terrestrial and subsea applications. Over the last year Xtera has succeeded in expanding its customer base and product portfolio in both existing and new markets. The AscenVision acquisition continues this strategic growth, extending Xtera's product portfolio beyond the optical layer.

"Our mission is cost-effective bandwidth delivery, whether you are dealing with wavelengths or packets, or both. This acquisition enables us to extend our reach within our current customer base, broaden our market to include enterprise customers, and strengthen our presence in greater China maximizing both our future R&D efforts across product lines and our sales and support efforts in the region. We are very excited about this addition to Xtera," said Jon Hopper, Xtera Communications CEO.

"Xtera's global reach will accelerate the expansion of our IP enterprise networking market share," said former AscenVision CEO Chinming Kuo, who now serves as Senior Vice-President and GM of Xtera's newly formed IP Networking Division. "That's where we start. However, the communications industry is becoming more and more IP-centric, and in that context we will be exploring ways to complement or strengthen Xtera's other product offerings as well. It's an exciting opportunity."

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