June 11, 2007

Allen, Texas – (June 11, 2007) – Xtera Communications announces the introduction of Nu-Wave ES, its latest high-performance all-Raman optical line system, designed to significantly lower the start-up cost of highly scaleable optical networks and redefine the pay-as-you-grow paradigm.

The unparalleled performance of all-Raman amplification allows service providers to simultaneously achieve significantly more distance and capacity when compared to EDFA based networks. This type of all-Raman performance simplifies the delivery of high-capacity next generation IP and video services opening up new markets for business, computing, media, and entertainment applications.

In fact, "all-Raman performance" has been deployed to overcome the challenging demands of a 4,000 km multi-terabit post-production video network. The technology enabled an extraordinarily high percentage of OADM nodes across the network, providing easy access to high-quality bandwidth for compressed and uncompressed video applications. It has also been used to demonstrate next generation IP-over-DWDM service delivery using 40 Gb/s routers. The demonstration occurred on field deployed fiber over a record breaking distance of 3,040 km. It shows that service providers can maximize current fiber infrastructure to deliver existing and emerging services.

"Recent developments in Raman amplification has allowed Xtera to develop the world's first ultra-scaleable line system to significantly reduce the start-up cost of a high-performance next generation network," said Herve Fevrier, COO, Xtera Communications. The technology is used within Xtera's latest all-Raman optical line system, Nu-Wave ES, to minimize start-up costs without compromising the ultimate capacity of the network.

Xtera CEO Jon Hopper commented, "While we are very pleased with the overall progress of Xtera having reached profitability in fiscal year 2006 and completed successful deployments throughout Europe, The Middle East, Asia, South America and North America; we recognized the need to offer a highly scaleable system that not only substantially lowers the day one costs of our customers, but also lowers our cost of goods sold by over 70%, opening much larger segments of the market to Xtera."

Up to now, the pay-as-you-grow strategies for DWDM systems have been limited to the terminals. Nu-Wave ES extends the concept to include the optical line system. The Nu-Wave ES optical line system can be deployed at a cost-saving capacity of 30 wavelengths and can grow to an ultimate capacity of 150 (10 Gb/s or 40 Gb/s) wavelengths. Nu-Wave ES can be deployed in a highly scaleable multi-degree node configuration to enable service resiliency and bandwidth efficiency to enable even more network level savings. With Nu-Wave ES, service providers in both growing and emerging broadband markets can afford to deploy highly scaleable next-generation networks.

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 maximising network capacity, reach and value.

For more information, please visit www.xtera.com