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Passave Surpasses Sales of 500,000 Ports of EPON Silicon for Fiber-To-The-Home

EPON reaches volume deployments with the expected ratification of the new IEEE802.3ah standard

Santa Clara, CA – May 17, 2004 – Passave Inc., the leading provider of semiconductors for fiber-to-the-home (FTTH) systems, announced today that the company has surpassed sales of 500,000 FTTH ports of its standards-compliant Ethernet passive optical networking (EPON) silicon.

Demand for EPON semiconductors is surging, as leading Asian carriers are quick to adopt the new IEEE802.3ah EPON standard. Broadband access in FTTH deployments is now available at bandwidths of up to 1000 times those of DSL and cable modems.

“A new era of fiber broadband access is commencing,” said Michael Howard, principal analyst and co-founder of Infonetics Research, an international market research and consulting firm. “Passave is fueling the growing wave of Ethernet standards-based fiber-to-the-home deployments, which started in Japan and is likely to re-shape broadband access worldwide.”

“Already in its growth stage in Japan, FTTH is expected to experience strong growth worldwide over the next few years,” said Steve Rago, Principal Analyst for Networking and Optical Communications with iSuppli (El Segundo, CA), a leading communications research firm. “A key enabler to the success of FTTH deployment will be the availability of cost-effective, standards-compliant silicon designed exclusively for FTTH applications, such as that offered by Passave.”

Passave has established strong customer relationships with leading equipment vendors in Japan, Korea, China, Taiwan, North America and Europe. The first company to fully provide complete, standards-compliant EPON silicon, Passave is currently shipping its second-generation, field-proven devices for both customer premise equipment (CPE) and central office (CO) systems.

The Passave PAS5001-N OLT and PAS6001-N ONU devices are the only mature EPON solutions to provide high-efficiency and programmable dynamic bandwidth allocation (DBA), tailored to quality-of-service (QoS) requirements of specific applications and carriers. As a result, operators can optimize their networks for popular revenue-generating access applications.

“The market for IEEE802.3ah equipment is at the beginning of a massive growth cycle. Moving ahead with mass deployments, carriers increasingly are relying on our field-proven, second-generation silicon,” said Ariel Maislos, President of Passave. “Our recent sales to leading OEMs worldwide validate Passave position as a leading player in the EPON ecosystem and a provider of world-class support and innovation to its customers.”

About Passave
Passave Inc. is a fabless system-on-chip vendor offering integrated solutions for broadband fiber access. Passave delivers mature, standard-compliant and interoperable solutions for Ethernet passive optical networks (EPONs) that expedite the OEM design process and dramatically reduce product cost. Leveraging Ethernet and IP technologies, Passave offers complete chipsets for fiber-to-the-home (FTTH) systems. The Passave unique approach enables operators to generate significant revenues from popular broadband access applications. Founded in 2001, Passave has received strategic backing from leading venture capital firms and private investors. For more information about Passave, visit