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Press Release

May 31, 2005 - Valley Telecom Group, a Leading Telecom Company in SE Arizona and SW New Mexico, Chooses Wave7 Optics for New FTTP Network

Atlanta – May 31, 2005 – Wave7 Optics Inc., the world’s leading supplier of IP video and point-to-multipoint Ethernet PON FTTP (fiber-to-the-premises) systems for residential and business services, today announced that the Valley Telecom Group of Willcox, Arizona has selected Wave7’s “Last Mile Link” (LML) fiber-to-the-premises (FTTP) network equipment to deliver a high-quality triple play of IP-based voice, television and data services to residential and business customers in Willcox and Safford, Arizona. Valley currently has 10,000 access lines in its service region.

Funded in part by a Rural Utilities Service (RUS, a service of the U.S. Department of Agriculture) loan, network construction will begin in mid-2005 and “pass” more than 7000 homes and businesses in the two communities by the conclusion of the expected nine-month project. Valley is “overbuilding” existing Qwest copper-based facilities to expand their broadband offerings in this region. Subscribers to Valley’s new FTTP network will enjoy more than 100 channels of television, including pay-per-view, four telephone lines and a symmetrical upstream/downstream Internet connection for real “high-speed” surfing, interactive gaming and more.

Valley is also providing FTTP service to Playas, New Mexico, the site of a former smelting operation that became a “ghost town” after the smelter closed. New Mexico Tech University subsequently purchased the town property and will use it to model disaster simulations as part of the University’s contract with the U.S. Department of Homeland Security. The FTTP network will provide the high-speed data connections and other communications capabilities required to conduct the simulation exercises.

“We liked the economics and deployment flexibility of the Last Mile Link system, such as having hardened PON ONTs that can stand up in the field to our harsh summers,” said Joe Webb, COO of Valley Telecom. “FTTP also makes sense on a number of levels, such as system durability and lower maintenance costs, but especially when it comes to quality of service. For instance, the IP video service provided by the Last Mile Link is truly impressive and I know our customers are going to love it.”

Visitors to both Supercomm (www.supercomm2005.com), next week in Chicago, and Cable-Tec Expo (http://expo.scte.org), June 15 – 17 in San Antonio, can “test drive” the LML system at the Wave7 Optics booth at each exhibition – 14058 at Supercomm and 121 at Cable-Tec.

About Valley TeleCom Group

Valley Telecom Group is proud to deliver state of the art communications with local service and a local commitment to rural AZ and NM. Valley Telecom Group is comprised of Valley Telephone Cooperative Inc., subsidiary Copper Valley Telephone, and business divisions Valley Connections and Valley TeleCom. Valley Telephone Cooperative is an Incumbent Local Exchange Provider that provides voice and data services to 4800 customers in rural markets in Arizona and New Mexico. Valley TeleCom Group also represents a regional fiber network offering IP, Dark Fiber, and long-haul services. Telephone Cooperative Inc. was formed in 1962 and is headquartered in Willcox, AZ. Find out more about Valley TeleCom group on the Web at http://www2.vtc.net/.

About Wave7 Optics

Wave7 Optics 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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