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Passave`s PAS6201 Gigabit EPON Optical Networking Unit Qualifies For Deployment in Korea

System Vendor Tellion Passes Benchmark Testing with KT (Korea Telecom) for FTTH Gateway System Powered by Passave ONU.

SANTA CLARA, Calif., June 29, 2005; Passave, the leading provider of semiconductors for Fiber-to-the-Home (FTTH), and Tellion, a leading developer of networking systems for access networks, today announced that the EP 3120 OLT (optical line terminal) and EP 3204 residential-gateway ONU (optical networking unit) have successfully passed benchmark testing by KT (Korea Telecom) and are qualified for deployment in Korea. The OLT and ONU devices are designed around the gigabit EPON chipset from Passave.

The joint Tellion-Passave offering answers the need by carriers for high-performance, low-cost access equipment. Tellion`s EP 3204 4-port residential gateway ONU is designed around the Passave PAS6201, the world`s most integrated ONU/gateway device, driving FTTH to price-competitiveness with DSL.

The Passave PAS6201 device in the customer-premises-based EP 3204 incorporates an ARM9 CPU that offers comprehensive networking functionality, making it unique among EPON devices in providing full residential-gateway services. In the central office, the EP 3120 incorporates a Passave PAS5001, the most advanced FTTH central-office EPON device available. The PAS5001 integrates Passave`s advanced, programmable DBA (dynamic bandwidth allocation) engine, which runs multiple DBA algorithms, including an algorithm developed by KT.

“Our four-port residential gateway offers carriers the advanced capabilities of the world`s most highly integrated ONU chip, the Passave PAS6201, along with demonstrated leading broadband performance – while offering an unprecedented reduction in the bill of materials with respect to the cost of other ONU solutions,” said Kim Jae Guen, CEO and president of Tellion.

“At Passave we have a vision of gigabit FTTH transforming communications throughout the world, as is currently happening in the Japan,” said Ariel Maislos, president of Passave. “Having shipped more than a million ONU devices to Japan, we are pleased to see our third-generation ONU system-on-chip (SoC) qualify for deployment in Korea. The Korean market has shown rapid adoption of broadband, and is likely to become a role model for acceptance and adoption of FTTH as well.”

The PAS6201-based EP 3204 and PAS5001-based EP 3120 offer an ideal platform for delivery of “triple play” IP services – data, video and voice on a single network. “Triple play is the new metric in broadband performance today,” added Maislos. “FTTH effectively achieves the promise of triple play, supplanting copper-based DSL as the broadband technology of choice.”

About Tellion
Today, seamless interconnection, packet-oriented convergence and multi-layer integration of networks attract attention and provide new business opportunities in the telecom equipment market. Emerging optical access markets drive telecom players to enforce innovation. Tellion`s core competence matches with these trends in the optical networks industry. The emerging optical access market will provide Tellion with new business opportunities. Challenging to the access networks in near future, competition dynamics will make our critical success story. The bold and energetic venture spirit of taking such opportunities is our company philosophy. For more information, visit www.tellion.com.

About Passave, Inc.
Passave is a provider of system-on-a-chip solutions for broadband fiber access. Passave has shipped over one million ONU devices and over two million OLT ports, making it by far the most widely accepted FTTH solution to date. Passave silicon offers complete, standard-compliant support of Quality-of-Service for advanced services such as “triple play” – data, video, and voice on a single network. Leveraging IP technologies, Passave offers its growing base of 30 OEM customers the lowest-cost bill of materials (BOM), the highest performance, and the shortest time-to-market. At the same time, Passave`s open-source software platforms and flexible hardware enable its customers to differentiate their products by developing their own features. Founded in 2001, Passave has received strategic backing from leading venture capital firms and private investors. For more information about Passave, visit www.passave.com.