ZyXEL Carrier Ethernet Has Successfully Won a Contract from Chunghwa Telecom for Four Consecutive Years

Hsinchu, Taiwan, February 26, 2008 --ZyXEL Communications (TSE: 2391), the world's leading end-to-end network solution provider, today announced that it has once again won another tender from Chunghwa Telecom (CHT), Taiwan's largest incumbent telecom operator, for Carrier  Ethernet switch deployment. For this large scale tender, ZyXEL will supply CHT for its NGN (Next Generation Access Network) construction for MoD (Multimedia on Demand) service deployment.
To meet the deployment needs of the NGN project, CHT plans to invest 1.8 billion US dollars on this project and 6 billion US dollars for the whole network deployment in the next six years. According to the terms of the contract, ZyXEL will provide CHT with Carrier Ethernet switches to deploy and build CHT's FTTB (fiber-to-the-building) network. This supports CHT's aims to form an integrated broadband service platform to offer residents, communities, and businesses with high-speed Internet access and Multimedia on Demand (MoD). Already long-term partners, CHT has issued high praises for ZyXEL's switches, which boast excellent reliability and performance. ZyXEL Ethernet switches have been earmarked by CHT for four years.

"It's been a source of encouragement and an honor for us to win the CHT Carrier Ethernet Switch tender again," said Dr. Yuh-Long Chen, ZyXEL's President. "ZyXEL has invested heavily in the development of central office equipment to fulfill different network topology demands from service providers. Given our considerable experience in the global market, we are confident in our capability to provide CHT with top-quality products and technology again."

Designed for Telco/ISP businesses, ZyXEL's comprehensive central equipment include Carrier Ethernet, WiMAX, xDSL and PON network solutions, meeting the highest Telco environment standards for IP multicasting, carrier-class QoS, network security and system stability. ZyXEL equipment offers a mark of differentiation from the market for even the most demanding of customers. ZyXEL's new "Metro series" Ethernet switches are particularly designed for Telco/ISP to deploy carrier class QoS, scalability, reliability and service management.

About ZyXEL Communications
ZyXEL Communications Corp. (TSE: 2391), headquartered in Hsinchu, Taiwan, is the world's leading end-to-end network solution provider and was recently ranked as Taiwan's First "Green Enterprise," and the second best "Green" Company in Asia (2007 CG watch, Asian Corporate Governance Association). ZyXEL's comprehensive Internet Protocol-based (IP) networking solutions include access multiplexers, 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.