Press Release

May 27, 2003 - Fiber-to-the-Home Networks in Europe to Get a Boost from Alliance between Teleste and Wave7 Optics

Last Mile Link® System from Wave7 Provides the Industry’s Most-Advanced Optical Broadband Voice, Video and Data Services

ALPHARETTA, GA and TURKU, FINLAND – May 27, 2003: Wave7 Optics, Inc. and Teleste Corporation today announced the signing of an agreement that provides Teleste non-exclusive access to Wave7’s Last Mile Link® (LML) fiber-to-the-home and –business (FTTX) broadband access system products and technology for sales and marketing in Europe and certain countries outside of Europe. Teleste is the leading European supplier of network solutions to cable operators (MSOs) and also sells to systems integrators and national telephone companies (PTTs) worldwide.

“We are very impressed with the Last Mile Link’s economic and technological value proposition and think it will make FTTX a more viable option for homes and businesses in our market areas,” said Pekka Rissanen, Senior Vice President of Teleste Broadband Cable Networks. “Our access to Wave7’s Last Mile Link system reinforces Teleste’s position as a technology leader committed to improving the business of its customers by providing innovative network solutions.”

“Teleste’s complementary headend products and practice of providing the best products and local support to their customers make them an ideal partner to help us increase our worldwide sales,” said Tom Tighe, President and CEO of Wave7 Optics. “We view Europe as a strategically important region for broadband communications and we are pleased that Teleste has chosen to carry the Last Mile Link.”

The Wave7 Optics advanced IP (Internet protocol) and Ethernet standards-based optical architecture provides -- over a single fiber -- video (analog, digital and/or IP streaming), high-speed data (e.g., Internet service), “carrier-grade” telephony services (VoIP or circuit-based, including fax) and TDM synchronous circuits (including T1s or E1s). The system includes customer premise equipment optimized for businesses, single-family residences and multi-dwelling units and it supports a bi-directional data rate of 500 Mb/s per subscriber.

The LML’s “PON alternative” design overcomes the high fiber counts, limited distance range and high “central office” equipment costs of competing FTTX solutions – such as passive optical networks (PONs) – factors which have heretofore impeded deployment of FTTX solutions. Featuring industry-leading privacy and security encryption techniques and “quality of service” mechanisms, the LML access system can be deployed and expanded incrementally to match customer growth and thereby maximize the network operator’s ROI.

About Teleste

Teleste is an international technology group founded in 1954, which is specialized in broadband data communication systems and solutions. The group is divided into two Strategic Business Units: Broadband Cable Networks and Video Networks. Broadband Cable Networks serves cable operators and major part of the business activities are handled through direct customer contacts. The Video Networks unit supplies solutions for optical signal transmission and major part of its business is handled through system integrators.

Both business units are among the leading companies in their market areas and are globally recognized for their know-how and ability to produce technically cutting edge solutions year after year. In 2002 the group's net sales in continuing business was €66,8 million and the group employed approximately 500 persons. The company has 30 offices worldwide and more than 80 percent of Teleste's net sales are generated outside Finland. The company is listed on the main list of Helsinki Exchanges. Additional information about Teleste is available from: www.teleste.com. For more information please contact pekka.rissanen@teleste.com.

About Wave7 Optics

Wave7 Optics, Inc. is a market leader in the fiber-to-the-home and business (FTTX) optical access market. The Last Mile Link™ optical access system effectively overcomes traditional cost and implementation barriers to the bandwidth capacity bottleneck in the last mile of communications networks. Wave7 Optics’ innovative approach to optical access is a generation ahead of competitive PON technologies in both cost and capability. The Last Mile Link product suite provides solutions that specifically address residential, business and multi-tenant customers with a unifying architecture providing a complete triple play of voice, video, and data services.

For more information please contact emmanuel.vella@w7optics.com.

<Back>