ZyXEL Wins Chunghwa Telecom Powerline Devices Procurement Tender

Hsinchu, Taiwan, December 25, 2008 --ZyXEL Communications (TSE: 2391), the world's leading broadband access solutions provider, has won the procurement tender of Chunghwa Telecom's Digital Home project. In addition to being a frequent winner of CHT's CO tenders, ZyXEL has also proven to be competent in the home market, thanks to its superior technology and product quality. The success of CHT's tender indicates ZyXEL's comprehensive end-to-end solutions are bound to generate more profits for service providers.

As CHT's MOD (Media-on-Demand) service becomes more popular in Taiwan, the company expects to reach 1.2 to 1.4 million users early next year in accordance with the 50% growth rate of the global market. In addition to set-top boxes for MOD, CHT will also provide Powerline network kits that enable users to take advantage of Internet connections to watch MOD programs everywhere at home.

ZyXEL's Powerline devices use the existing power grid in the house to become an instant network infrastructure that significantly simplifies the indoor deployment process. With no need for additional wiring or change to home decoration, the devices can be simply connected to an existing power outlet and powered on to transmit network signals and relay the information to regular Ethernet cables connected to devices such as computers, wireless access points, Web cams, set-top boxes and game consoles. The exceptional 200Mbps throughput and data encryption are ideal for high-quality video streaming, high-speed networking and crystal-clear VoIP applications.

In addition to home power grids, the ZyXEL equipment included in this tender can also deliver data through cables to provide easier ways for extending the network connection from home broadband routers. The combination of the capability and CHT's IP set-top boxes will ensure users to enjoy more versatile and convenient digital home entertainments.

"The worldwide demand for powerline communications is rising and we expect this technology to play a dominant role in the no-new-wire networking arena." Dr. Yuh-Long Chen, ZyXEL's president said. "The powerline solution is fast, easy-to-use and will add a fat pipe for streaming multimedia video into homes. With the successful powerline deployment in CHT's MOD project, we are confident that the cooperative model and experience obtained will benefit other worldwide digital home-related projects."

To find a local ZyXEL distributor, or for more information about ZyXEL's products, visit http://www.zyxel.com/web/where_tobuy.php

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 manufacturers, 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 three research and development centers worldwide. For more information, visit the company's Website, http://www.zyxel.com.