ZyXEL Launches All-IP Set Top Box Range and New Global Telco Partnership

Hsinchu, May 15, 2008 -- ZyXEL Communications (TSE: 2391), world's leading broadband access solutions provider, has joined the Ericsson IPTV development and delivery ecosystem.

The agreement coincides with the launch of ZyXEL's advanced range of Internet Protocol (IP) Set Top Box entertainment devices. This unique suite promises to extend the benefits of communications convergence into the living rooms of millions of consumers – while creating opportunities for telcos to extend their broadband subscriber base, increase revenues and rapidly deliver returns on their IPTV investments.

The ZyXEL IP-STB (STB-1001S, STB-1001H or the STB1000 series), the entry-level to high definition product range completes the company's award winning portfolio of IP Audio Visual devices,  to deliver a comprehensive media centre for today's connected lifestyles.

"Today's global IP-STB partnership agreement with Ericsson marks a significant milestone for the two firms," said Dr. Herman Chen, Assistant VP of IPAV product division at ZyXEL. "As one of an elite group of vendors ZyXEL will benefit from Ericsson's global sales channel, while our IP-STB products and technical development capabilities will add significant value to the service providers' multimedia IPTV proposition."

Under the terms of the deal, Ericsson will work closely with ZyXEL's technical development team to ensure IPTV remains the cornerstone of its IMS (IP Multimedia Subsystem) platform. The service provider will also play a key role in extending the market for ZyXEL's new IPTV IP-STB range.

Applying as a member of the "Open IPTV Forum", the organization created by one of founders --Ericsson, ZyXEL will work more closely with Ericsson to accelerate the development of IPTV technology and helps to provide an "easy to use" experience for the end-users.

ZyXEL IP-STB Functionality

ZyXEL's IP-STB family offers access to IPTV and Video On Demand services, with MPEG4 and High Definition support delivering dramatic viewing enhancements to allow consumers to enjoy greater realism and more detail - especially on large displays - with less impact on bandwidth.

Featuring advanced decoding, ZyXEL enables service providers to increase bandwidth efficiency and offer two or more streams per household. This delivers higher service density, and offers an opportunity to grow revenues and achieve faster return on their IPTV investments.

In addition, advanced functionality, including Digital Video Broadcasting - Terrestrial (DVB-T) support to deliver additional video sources, and a built-in Personal Video Recorder (PVR) to allow users to record and watch content at their convenience, forms part of the ZyXEL STB roadmap.

In a further step towards a connected home entertainment environment, ZyXEL's STB range will be certified by the Digital Living Network Alliance (DLNA). This will allow users to share digital content across any compatible device in the home - for example, retrieving a movie from a PC to TV in another room.  

Significantly, ZyXEL employs Technical Report 069 (TR-069) remote management and upgrade capability. This allows telecom providers to benefit from significantly reduced support and maintenance costs, while delivering the most advanced functionality to consumers - without the inconvenience of having to wait for engineer to come out. This, together with straightforward installation for engineers or subscribers, makes the ZyXEL STB range ideal for the mass-market.

All ZyXEL's IP-STB products are compatible with a host of content protection and rights management solutions, and benefit from support by leading middleware providers as part of their integrated broadband TV solutions.

"Our vision is that of the set-top box becoming a centralized portal for all connected devices throughout the home," commented Dr. Chen. "Not only can it act as a gateway to a new generation of music and video entertainment content, but will create the platform from which to monitor and control a vast array of internet devices, everything from health care, communications, and white goods.

"With this clear vision, a strong product portfolio, we expect the ZyXEL IP-STB range to become the heart of digital living for millions of Telco customers across the globe in 2008."

ZyXEL's complete set of IP multimedia products, from its STB, Digital Media Adaptor and Wireless Projector Adaptor ranges, are now commercially available and can be ordered via ZyXEL's global sales network of system integrators and value-added resellers. To find a ZyXEL distributor nearest your location, visit http://www.zyxel.com/web/where_tobuy.php

About ZyXEL Communications
ZyXEL Communications Corp. (TSE: 2391), headquartered in Hsinchu, Taiwan, is the world's leading residential gateway 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.