ZyXEL Won Chunghwa Telecom's First VDSL2 Equipment Tender for 340-thousand Lines

Hsinchu, Taiwan, October 9, 2007 -- ZyXEL Communications (TSE: 2391), the world's leading broadband access solutions provider, announced that the company has won Taiwan's largest incumbent telecom operator, Chunghwa Telecom (CHT) VDSL2 equipment tender for the "Next Generation Access Network". This project, comprising 340-thousand lines, is not only CHT's first procurement of VDSL2 equipments, but also the largest and most complex one for a single tender in the world, in terms of deployment scale and product specifications.
CHT qualified four local and international equipment manufacturers to participate in this tender; but only the vendor with the best product, specification, service and support, as well as hands-on experience constructing other major projects meets CHT's stringent demands. Endorsed by the judge panel assigned by CHT through months of rigorous reviews and testing, ZyXEL finally surpassed three other competitors in the tender with its excellent network technologies and proven track records.

"Winning several CHT tenders in a row has been a recognition to ZyXEL's technical expertise and competitiveness;" says Dr. Yuh-Long Chen, President of ZyXEL, "ZyXEL will take full advantage of its experience obtained from major overseas VDSL projects to help CHT deploying an island-wide broadband network. We are confident that our professional competence and knowledge will lay a solid foundation for our relationship with CHT."

To meet the deployment needs of CHT's "Next Generation Access Network", ZyXEL will provide VDSL2 devices (IP DSLAM and CPE) for high-bandwidth and high-performance transmissions, as well as robust QoS (Quality of Service) support, network security and bandwidth management. These features will empower CHT to offer value-added triple-play (data, voice and video) services for users to engage high-quality Web surfing and interactive media services such as MOD.
About ZyXEL Communications

ZyXEL Communications Corp. (TSE: 2391), headquartered in Hsinchu, Taiwan, is the leading VDSL equipment vendor and the world's largest DSL router provider (In-Stat, 2006). ZyXEL's broad line of Internet Protocol-based (IP) networking solutions includes 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. Combined of 29 sales offices and 3 R&D centers worldwide, ZyXEL currently has 3000 employees and distributors in 70 countries reaching over 150 regional markets. For more information, visit the company's website at http://www.zyxel.com.