Press Release

November 07, 2006 - Wave7 Optics Municipal Customer, DiamondNet of Sallisaw, Okla., Records Subscriber Milestone

FTTP System Featuring 225 Video and Digital Music Channels Now Serves 1000+ "Subs"

DALLAS – November 7, 2006 – Wave7 Optics Inc., a leading supplier of fiber-to-the-home or -premises (FTTH/FTTP) equipment for residential and business services, today announced here at the TelcoTV conference that one of their municipal network customers, DiamondNet of Sallisaw, Okla., recently surpassed the "1000 subscriber" milestone. This figure represents a 25% penetration rate in this community of approximately 4100 homes and businesses and illustrates rapid growth since the completion of network construction in May 2005.

Based on the Wave7 Optics Last Mile Link™ (LML) platform, DiamondNet offers a "triple play" package of services that features 225 video and digital music channels, video-on-demand services, high-definition signals, reliable "POTS" and VOIP telephone services and Internet speeds of up to 10 Mbps.

"We are very pleased with the growth of DiamondNet and the trust that our community has placed in the project and its services," said Keith Skelton, Sallisaw Assistant City Manager. "To reach 1,000 customers is truly an accomplishment for the staff of DiamondNet, our city commissioners and city management. The DiamondNet staff and Wave7 have worked hard in the last eighteen months to get the system where it is today. The Last Mile Link has met or exceeded our expectations in all areas of operations. As a result, we have brought the most advanced telecommunications services to our community and we feel the best is yet to come."

After completing a detailed feasibility study in 2003, the Sallisaw Municipal Authority (SMA) began the implementation program to provide leading-edge broadband services to each residence and business in the community through a phased network construction program that was completed in May of 2005. The SMA created DiamondNet to deliver fiber-based video and Internet services to the community. Phone services are provided via a partnership arrangement with Newroads Telecom, a Competitive Local Exchange Carrier located in Ft. Smith, Ark.

"With this investment, the city commission has ensured the Sallisaw community will have these types of services for many years to come," said Bill Baker, Sallisaw City Manager. "The system is a first for municipalities in Oklahoma and it shows the vision our community has and their desire to have efficient and reliable services of this nature."

"DiamondNet is certainly one of our showcase projects and we congratulate them on their initiative and this achievement," said Emmanuel Vella, Chief Marketing Officer of Wave7 Optics. "The high level of cooperation and motivation shared by all parties concerned makes this a great municipal network success story."

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 IP and Ethernet or ATM standards, for "triple play" voice, video and data services. The company's patented Last Mile Link and Trident7 systems are rapidly gaining market share around the world with service providers in the IOC, CLEC, cable MSO, municipal, utility and real estate development categories.

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