ZyXEL Wins Another Chunghwa Telecom VDSL2 Equipment Tender for 480,000 Lines

Hsinchu, Taiwan, September 17, 2008 -- ZyXEL Communications (TSE: 2391), the world's leading broadband access solutions provider, today announced its success in Chunghwa Telecom"s latest 480,000-line VDSL2 access equipment tender. This is the largest single procurement contract from CHT for such systems so far, and it comprises the latest addition to the company"s 1.1 million lines of VDSL2 equipment from ZyXEL.

In recent years, CHT has invested aggressively in the "Next Generation Access Network" to meet its target of over 1 million users by the end of this year, and the company also wishes to expand the user base of its popular MOD (Movie on Demand) service to surpass the 1 million mark as well. ZyXEL has previously secured both a 200,000-line and an 89,000-line tender this year, in addition to the 340,000-line VDSL2 contract in 2007. In the latest 480,000-line tender with a value of NT$1.2 billion, ZyXEL stands out again from the competition with the superior quality and technical expertise it possesses that has also won the trust of CHT.
"The continuing cooperative relationship with CHT signifies that ZyXEL is both trustworthy and revolutionary in terms of our technical capability," says Dr. Yuh-Long Chen, ZyXEL"s President. "We at ZyXEL are always ready to work with CHT. We"ll be glad to contribute our experience and expertise to maintain this productive, mutually-beneficial relationship."

In order to assist CHT build the VDSL2 infrastructure with ease, ZyXEL provides VDSL2 equipments at both the central office and customer premises with specially enhanced performance, QoS (Quality of Service), security and bandwidth management for CHT to offer high-quality Triple-Play (data, voice and video) services such as Web surfing, MOD and other media deliveries.

As a renowned "green" enterprise, ZyXEL not only commits itself to reduce both energy consumption and carbon emissions, but also helps its customers to be more caring of the environment and society. The VDSL2 equipments offered to CHT meet all international environmental standards while conserving power through highly effective hardware and firmware designs. Aside from helping CHT to become a "green" enterprise, these power-efficient products also reduce cost of long-term operations.

About ZyXEL Communications
ZyXEL Communications Corp., founded in 1989 and headquartered in Taiwan, is the leading provider of complete broadband access solutions for service providers, and business and home users. The company was recently named Taiwan"s first "green enterprise," and is the second highest ranked "green" company in Asia (2007 CG watch, Asian Corporate Governance Association).

As one of the early modem makers, 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 including DSL customer premise equipment, central office equipment, Internet security appliances, switches, WLAN equipment, network-attached storage and centralized network management systems.

The company has 3200 employees and distributors in 70 countries, reaching more than 150 regional markets. The ZyXEL Communications Corp. includes 29 subsidiaries and sales offices and 3 research and development centers worldwide. For more information, visit the company"s website: http://www.zyxel.com.

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