Once Again, ZyXEL Has Successfully Won a Contract from Chunghwa Telecom to Provide Fiber Metro Area Network Equipments

ZyXEL Will Provide Carrier-Grade Gigabit Ethernet Switches to Taiwan's Largest Incumbent Telco for Fiber Metro Area Network Deployment

Hsinchu, Taiwan, April 2, 2007 --ZyXEL Communications (TSE: 2391), the world's leading broadband access solutions provider, today announced that it has won yet another tender from Chunghua Telecom (CHT), Taiwan's largest incumbent telecom operator, for Gigabit Ethernet switch deployment on March 30. Alcatel-Lucent and ZyXEL have joint force to successfully win this large scale tender in which ZyXEL will supply Gigabit Ethernet switches that allow CHT to construct a Fiber Metro Area Network (MAN) covering northern, central and southern regions in Taiwan.

"It's truly a pleasure as well as an honor for us to win the CHT Gigabit Ethernet Switch tender again,"said Dr. Yuh-Long Chen, ZyXEL's President. "As the fruit of ZyXEL's continuous innovation in the carrier-class switch market for years, our switches have been preferred by CHT for their excellent reliability and performance. We are also gaining new grounds aggressively on FTTH/FTTB switch procurement projects from Telco operators in new emerging markets such as regions in Eastern Europe. To satisfy growing needs, ZyXEL has devoted considerable investments in the development of carrier-class Ethernet equipments; and I believe that by way of the successful domestic and overseas reference sites, we are more equipped to duplicate the success into other countries, and therefore to enhance ZyXEL's brand reputation as well as competitive advantage in the global market."

The equipment CHT acquires in this contract will be deployed to build the new-generation MAN, and form an integrated broadband service platform to offer residents, communities, and businesses with high-speed Internet access, lease lines, Multimedia on Demand (MOD), and VoIP services.

For this tender, CHT has strict requirements equipment for specification and performance. In addition to outstanding data throughput, CHT also requires IP multicasting, carrier-class QoS, network security and system stability to meet the highest Telco environment standards. As a long-term valued partner for ZyXEL, CHT has high praises for ZyXEL's switches which boast excellent reliability and performance. After several rounds of specification review and passing strict benchmark testing, ZyXEL was selected by CHT for both its competitive pricing and out-standing product excellence.  

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.