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Press Release

May 12, 2005 - Wave7 Optics and Road 9, Inc. Initiate 7000-Subscriber FTTP Project For Loreto Bay Community in Baja California Sur, Mexico

Atlanta / Denver – May 12, 2005 – Wave7 Optics and Road 9 Inc. today announced the initiation of a triple-play fiber-to-the-premises (FTTP) infrastructure that will ultimately connect 5000 homes and 2000 hotel rooms in The Villages of Loreto Bay, a $2.2 billion development near the Mexican town of Loreto on the Baja peninsula, between the Sierra de la Gigantas and the Sea of Cortés. Road 9, who specialize in turnkey, Ethernet-based systems, selected Wave7’s “Last Mile Link” (LML) platform to distribute high-speed Internet services, RF video programming and VoIP-based telephone services to the residents and tenants of Loreto Bay.

“Our delivery of all video, voice and high speed internet services to Loreto Bay will strengthen their sales and service offerings to prospective home buyers,” said Jim King, CEO of Road 9. “We will be there every bit of the way to sell this superior communications solution, made possible by Wave7’s optical broadband solution.”

“Green fields projects especially need low ‘first in’ costs and ‘pay as you grow’ capabilities, both of which are strong points of the Last Mile Link system,” said Tom Tighe, CEO of Wave7 Optics. “Furthermore, the Last Mile Link has proven interoperability with virtually every set-top box, softswitch, headend, middleware and other equipment, making it an even more logical choice.”

Taking advantage of Wave7’s industry-leading PON system deployment flexibility and technical capabilities, Road 9’s next-generation fiber-optic system is scalable (several hundred to several thousand subscribers) and extensible (new features and services) and will more than meet the needs of Loreto Bay for the foreseeable future. The standards-based and modular design of the LML makes it easier to implement upgrades and performance enhancements at minimal cost and with no impact to existing services (“on the fly” with no service downtime).

RedIP Mexico, S.A. de C.V. (www.redipmexico.com), a certified Wave7 Optics integrator based in Mexico City, is managing the systems integration aspects of the project.

About Road 9
Road 9 (www.road9.net) designs, builds and operates private Fiber-to-the-Home (FTTH) systems in Master Planned Communities and municipalities. Road 9 offers a hand-picked team of communications industry veterans, and a host of services built on "future-proof" technology. Road 9’s business model enables the distribution of high-speed Internet services , interactive IP-based TV, High Definition Television (HDTV), true Video on Demand (with pause/rewind/fast forward functionalities), enhanced IP telephony, remote security cameras and alarm monitoring, and other market-defined services.

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.

About Loreto Bay Company
The Villages of Loreto Bay offer courtyard homes, luxury condominiums, custom beachfront and golf course homes and Beach Club villas in walkable villages. Prices start in the mid $200,000s. The $3 billion, 8,000-acre project will be built in phases over 12 to 15 years. Plans call for a mixed-used development featuring 6,000 homes, boutique resort hotels, a golf club, beach club and spas, service and retail businesses, as well as cultural and recreational facilities. Five thousand acres will be maintained as a natural preserve for hiking, cycling and organic farming.

The Loreto Bay Company is partnering with FONATUR, Mexico’s tourism development agency, to develop The Villages of Loreto Bay. Located approximately 700 miles south of San Diego, Loreto Bay has been identified by FONATUR as one of five prime tourism destinations in Mexico. The others are Cancun, Los Cabos, Ixtapa-Zihuatenejo and Huatulco. For more information, call +1 480.443.8350 or visit the Web site at www.LoretoBay.com.


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