Xtera Communications Acquires Meriton Networks

Xtera's End-to-End Next Generation Communication Solutions Reach Into Metro With ROADM & Packet Optical Networking Technology From Meriton

DALLAS, TX and LONDON and OTTAWA -- (MARKET WIRE) -- 04/06/08 -- Xtera Communications today announced the acquisition of Meriton Networks. With the addition of Meriton's award-winning Metro Optical Networking portfolio, which addresses both the Packet Optical Edge/Metro and Metro/Regional ROADM market, Xtera now offers network operators a new solution partner for end-to-end next generation optical networking solutions.

Xtera Communications is a privately held company that supplies Optical, IP performance and service solutions to terrestrial and sub-sea global service providers with development, sales and support offices around the world.

Xtera has been strategically extending both its product portfolio and global reach to complement its existing core business with a number of previously announced acquisitions. The acquisition of Meriton is the latest move in the company's announced growth strategy of strengthening its global position in the converged IP and optical communication market and provides the company with:

-- A carrier class metro transport portfolio that delivers both cross- connect and ROADM switching, together with sub-wavelength grooming capabilities -- Proven R&D expertise in innovative Packet Optical Networking/Carrier Ethernet Transport and ROADM technology -- A global Tier 1 and Tier 2 service provider customer base -- Increased global footprint in the areas of R&D, sales and support

Xtera is now uniquely positioned to help network operators meet the explosive growth in Ethernet and IP traffic. The resulting portfolio greatly enhances the company's ability to provide an agile end-to-end optical network while allowing service providers to realize the promise of lower operating costs and increased management efficiencies.

"As with our previous acquisitions, Meriton brings advanced technologies, additional customers, and geographical diversity, along with improved economies of scale, across our business," said Xtera CEO Jon Hopper. "With this acquisition, Xtera Communications has moved significantly closer toward our goal of being a leading provider of converged Ethernet/IP and Optical Transport solutions."

"Optical networking is showing significant growth in all markets across the globe," said Michael Howard, Principal Analyst at Infonetics. "The continuing traffic demands for increased capacity are driving the need for new platforms that converge packet and optical layers to reduce cost and complexity in next generation transport networks. Xtera's acquisition of Meriton Networks creates a wide product portfolio that provides reach from the metro access edge through the ultra long haul."

About Xtera Communications

Xtera Communications provides network solutions enabling communications companies to profitably deliver high-bandwidth tailored services at the lowest sustainable cost per bit. Xtera delivers value by combining sound business practice with compelling advantages in capacity, reach, simplicity and service. Further information is available online at www.xtera.com.

Contact: Xtera Communications Daryl Chaires +1.972.649.5187 mobile: +1.972-877-0875 dchaires@xtera.com

Ken Davison +1.613.270.9279 mobile: +1.613.884.5411 Ken.davison@meriton.com

Peter Boland mobile: +44(0) 7765 220 832 pboland@xtera.com

Xtera North America Kathleen Keith Keith Communications +1 707.529.4507 kkeith@redshift.com

Xtera Europe Andy Williams Cohesive Communications +44 (0) 1291 626200 mobile: +44 (0) 7785 370 507 andyw@cohesive.uk.com

2008-04-06 20:03:13 0328806 MARKETWIRE