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Press Release

January 31, 2005 - Santel Communications Cooperative, a Leading Telecom Company in South Dakota, Chooses Wave7 Optics for Sancom's New FTTP Network

Atlanta - January 31, 2005 - Wave7 Optics Inc., the world's leading supplier of IP video and point-to-multipoint Ethernet FTTP (fiber-to-the-premises) systems for residential and business services, today announced that Sancom of Mitchell, S.D. has selected Wave7's "Last Mile Link" fiber-to-the-premises (FTTP) network equipment to deliver a high-quality triple play of IP-based voice, video and data services to residential and business customers in Mitchell, S.D., home of the famous Corn Palace.

Santel operates as an independent operating company in Woonsocket, S.D. and its Sancom, Inc. subsidiary, Mitchell Telecom, operates as a CLEC in that community.

Funded in part by a Rural Utilities Service (RUS, a service of the U.S. Department of Agriculture) loan, network construction in Mitchell has begun and is expected to conclude in 4Q 2005. The new network will "pass" most of Mitchell's population of approximately 15,000. Mitchell Telecom is "overbuilding" existing Qwest copper-based facilities to provide optical broadband services. The new network will feature a service offering including more than 100 channels of television, including pay-per-view, four telephone lines and symmetrical Internet connections ranging from 64kbs to 10 Mbs for true "high-speed" surfing, interactive gaming and more.

"We considered DSL and even broadband wireless options for this community, but decided that FTTP made better sense in terms of capital depreciation and 'future proofing' the network in order to handle services yet to come," said Don Robertson, Operations Manager of Mitchell Telecom. "Furthermore, Wave7's clear leadership in IP video and their flexible deployment options, which permit us to deploy in a PON or hybrid active and passive network, really place them ahead of the pack."

“More and more communications companies such as Santel are opting for the ‘plug and play’ convenience, in the central office and in the field, that comes from basing the Last Mile Link on Ethernet and IP standards,” said Tom Tighe, CEO of Wave7 Optics. “We look forward to working with Sancom in the coming months, to help them achieve their goal of delivering broadband choice – and the most advanced network technology – to the residents of Mitchell.”

About Wave7 Optics

Wave7 Optics (www.wave7optics.com) has established itself as an industry leader in optical broadband access systems with an expanding FTTP product portfolio featuring a variety of architectural options, based on Ethernet and IP or ATM standards, for "triple play" voice, video and data services. The company's patented Last Mile Link system is rapidly gaining market share around the world with service providers in the IOC, CLEC, MSO, municipal, real estate development and utility categories.


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