NetCologne Implements High-performance Networks with ZyXEL VDSL2 Technology

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March 01, 2007

Hsinchu, March 1, 2007 -- ZyXEL Communications Corp (TSE: 2391), the world's leading broadband access solutions provider, today announced that the German regional telecommunication company, NetCologne, is expanding its high-performance fibreglass network and has chosen ZyXEL as its technology partner. The new "CityNetCologne" network being built by this regional carrier in Cologne will offer its customers Internet connections with connection speeds of up to 100 Mbit/s. NetCologne's fibreglass network will reach right into customers' locations and will achieve total independence from the so called "last mile", further purveying a high level of flexibility which NetCologne customers will profit from not only in the form of price/performance but also in service quality.

ZyXEL is to supply NetCologne with a complete hardware solution which includes mini DSLAMs and end-user clients. NetCologne has chosen to form a partnership with ZyXEL based on ZyXEL's long-standing experience with the VDSL2 technology. ZyXEL's hardware solution is extremely flexible and can be easily expanded to meet customers' growing demands. Due to the high speed requirement for the networks NetCologne is implementing, fast delivery is also a crucial issue which ZyXEL can fulfil. Optimal coordination and technical liaison on products are further criteria for NetCologne's choice of partner.

Werner Hanf, managing director of NetCologne states: "CityNetCologne is a network which is unique in Germany. Today, comparable networks can only be found in a small number of European cities and in Asia. So it's a pleasure that we could realise this strategic cooperation with a company from Asia. ZyXEL supplies us with technology that up to now has not been available in Germany."

Michael Kramer, ZyXEL Deutschland GmbH's managing director, comments on the cooperation: "This is ZyXEL's first VDSL project of this kind in Germany. It presents us with an outstanding opportunity to implement our global technology know-how. Our strength in this technology put us in a position that allows us to execute the specific demands of NetCologne in an extremely short period of time."

The new network has certainly pleased customers demanding more bandwidth for downloads, VoIP and IP-TV applications. In 2007, NetCologne plans to bring CityNetCologne to 9,000 more buildings.

About ZyXEL Communications
ZyXEL Communications Corp. (TSE: 2391), headquartered in Hsinchu, Taiwan, is the world's largest residential gateway provider (In-Stat, 2006). ZyXEL's comprehensive Internet Protocol-based (IP) networking solutions include access multiplexors, customer premise equipment, Internet security and Wireless LAN equipment, enabling high-performance network services for SOHO, small to mid-sized businesses and service providers. ZyXEL works closely with worldwide network equipment vendors, telecommunications companies, ISPs, and other major businesses. For more information, visit the company's website at http://www.zyxel.com.