October 22, 2005

Allen, Texas - (Oct 22, 2007) – Xtera, an innovator of optical transport solutions, announced that FLAG Telecom, a leading provider of international wholesale network transport and communications services, is purchasing additional Nu-Wave multi-reach DWDM equipment to respond to a 500-percent increase in customer demand for bandwidth-intensive applications, including video, data, and advanced voice services.

Xtera's Nu-Wave multi-reach DWDM system was installed in FLAG's FA-1 backhaul system last year to support anticipated capacity growth, network simplification and demand for high-quality bandwidth required by today's growing broadband applications. Current purchases include add-on devices that provide easy access to the capacity supplied by Xtera's Nu-Wave DWDM.

"FLAG Telecom has a sterling reputation for quality and flexibility which is the driving force behind their substantial quarter-over-quarter growth," said Jon Hopper, CEO of Xtera. "Our 18-month relationship with FLAG Telecom has enhanced their ability to service customers with superior bandwidth for converging applications."

Xtera's unique DWDM technology not only provides three times the capacity of other DWDM systems on the market, but also uses low-loss OADMs to simplify the network while simultaneously increasing its flexibility -- a capability that is paramount in responding to both planned and spontaneous surges in orders.

"We are very pleased to continue our relationship with Xtera," said Peter Boland, SVP of Engineering and Network Planning, FLAG Telecom. "Our initial requirement was to increase capacity and minimize wavelength turn-up time. With the implementation of Xtera's Nu-Wave equipment, all back-to-back terminals in the previous FA-1 backhaul system were replaced with more flexible optical add/drop multiplexers. The result is that 50 percent fewer network elements have to be serviced to fulfill end-to-end FA-1 backhaul orders."
About FLAG Telecom FLAG Telecom, a Reliance Infocomm company, has an established customer base of more than 180 leading operators, including all of the top ten international carriers. FLAG owns and manages an extensive optical fibre network spanning four continents and connecting key business markets in Asia, Europe, the Middle East and the USA. FLAG also owns and operates a low latency global MPLS based IP network, which connects most of the world's principal international Internet exchanges. FLAG offers a focused range of global products, including global bandwidth, IP, Internet, Ethernet and Co-location services. Recent news releases and further information are on FLAG Telecom's website at: www.flagtelecom.com. 

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