ZyXEL Wins CHT's VDSL2 Equipment Tender for Five Consecutive Years

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March 22, 2010

Hsinchu, Taiwan, March 23, 2010 – ZyXEL Communications (TSE: 2391), as the world’s leading broadband access solutions provider, today announces another success in Chunghwa Telecom’s (CHT) 350,000-line VDSL2 equipment tender for high-speed FTTx deployments. Since 2005, ZyXEL has won similar contracts from CHT for five consecutive years to serve 2.5 million households in Taiwan.

As CHT’s FTTx service garners over 1.65 million customers, the company estimates that the user base of the service will surpass ADSL in the third quarter of 2010; currently the market share of FTTx service has reached 50-60% of all Internet users in Taiwan. With the successful launch of 20MBbps downstream FTTx services that attracted 3,000 customers in merely a month, CHT is planning to roll out the ultra-fast 50MBps FTTx service in the second half of the year to facilitate value-added applications such as information security, cloud computing, energy saving, as well as high-definition audio and video entertainments. In the development of Taiwan’s next-generation consumer Internet connectivity, ZyXEL plays an important role in assisting CHT to raise the bar by delivering high-speed services to every customer in Taiwan.

This tender marks the beginning of the fifth cooperation between CHT and ZyXEL on VDSL2 deployments, and it also depicts ZyXEL’s superior technical expertise and product quality recognized by CHT, Taiwan’s largest Internet service provider. Compared with the tender also won by ZyXEL last year, the number of lines which ZyXEL won in this tender has an amazing growth rate of 128%.

In the past decades, ZyXEL has committed itself in developing Taiwan’s network infrastructure as a leading networking product company. “We at ZyXEL are gaining the market momentum in Taiwan by participating in the construction of all major networks such as FTTx and even WiMAX,” Stressed Dr. Shun-IChu, CEO of ZyXEL. “With the experience working alongside world-class service providers, we are aiming at elevating the network quality while offering all kinds of emerging online applications to customers in Taiwan.”

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About ZyXEL Communications
ZyXEL Communications Corp., founded in 1989 and headquartered in Taiwan, is the leading provider of complete broadband access solutions. As one of the early modem manufacturers, ZyXEL has undergone many transformations in the fast-paced networking industry. Today, ZyXEL is one of the few companies in the world capable of offering complete networking solutions of Telco, SME/Enterprise, and Digital Home for a wide range of deployment scenarios. Telco solutions include Wired and Wireless Access Network Equipments, Networking Customer Premises Equipments, and Carrier Switches. SME and Enterprise solutionsinclude Unified Security Gateway, LAN Switches, WLAN, and IP Telephony. Digital Home solutions include Network Connectivity Devices and Multimedia Solutions.

The company has 3200 employees and distributors in 70 countries, reaching more than 150 regional markets. The ZyXEL Communications Corp. includes more than 30 subsidiaries and sales offices and two research and development centers worldwide. For more information, visit the company's Website, http://www.zyxel.com.