ZyXEL and Sprint sign deal for WiMAX customer premise equipment

Award Winning 802.16e Solutions Support Sprint WiMAX Network Access

Shinchu, August 21, 2007 – ZyXEL Communications Inc., a leading provider of secure broadband networking, Internet connectivity and routing products, today announced that Sprint Nextel (NYSE: S) has selected ZyXEL WiMAX Customer Premise Equipment (CPE)  for use with their upcoming WiMAX mobile broadband network.  ZyXEL will join Sprint Nextel's WiMAX ecosystem partners in helping incorporate mobile WiMAX technology in a range of computing, portable multimedia, interactive and other business and consumer devices.

Recognized as a pioneer in DSL technology with the largest modem/router shipment in the world, ZyXEL introduced its WiMAX product line for the IEEE802.16e standard last year and was first to market with an all-in-one solution that combines WiMAX, Wi-Fi, VoIP and security in a single box.  ZyXEL's market leading CPE is currently in trial at over 40 different sites throughout the world including major deployments in Canada, Europe, Asia, Australia and South America.  ZyXEL has also been a major contributor for the M-Taiwan project, a nation-wide WiMAX deployment in Taiwan featuring its 2.5GHz micro-base stations, Element Management Systems (EMS) and ASN gateways for a total end-to-end solution.

Sprint is developing a large scale advanced wireless broadband network designed to mobilize the Internet, bring wireless innovation to devices and new multimedia mobile applications to customers. By wirelessly enabling the multitude of stand-alone consumer electronic devices that currently lack Internet access, Sprint will facilitate digital life amid a new era of user-generated content and Internet connectivity dependency. 

 "ZyXEL is an industry leader with proven solutions and a deep history in developing innovative broadband networking solutions,c said Barry West, Sprint Nextel chief technology officer and president of 4G mobile broadband.  "ZyXEL's award-winning WiMAX products are complimentary to our WiMAX ecosystem initiative. With the help of ZyXEL we are working to quickly make advanced mobile broadband services a reality for our customers."

ZyXEL's WiMAX product line includes the MAX-100 series PCMCIA card for mobile users and the MAX-200 series CPE, a plug-and-play router designed for home users, which will be used by Sprint.  Both of these products received the 2006 WiMAX World Award for Devices/Peripherals/Application Software.  The MAX-200S will enable Sprint to deliver last mile wireless broadband access to customers as an alternative to cable and DSL.  ZyXEL's product portfolio on the client/terminal devices also includes an Express Card, USB dongle, SOHO router, and both indoor and outdoor CPE for mobile WiMAX applications supporting 2.5GHz, 2.3GHz and 3.5GHz bands.  In addition, ZyXEL's comprehensive WiMAX product line also features the pico-cell and femto-cell base stations, which offer service providers a cost-efficient solution to enhance their 4G coverage with better indoor penetration while increasing network capacity and flexibility for wireless Internet service deployment

 "Sprint is a trusted partner and profoundly innovative company and we are pleased to be a technology partner for their WiMAX initiative," said Dr Shun-I Chu, chairman, ZyXEL Corporation.  "We share with Sprint a common goal to mobilize the Internet and we're looking forward to the successful launch of their service."

The agreement between Sprint Nextel and ZyXEL was formalized on Monday, August 13, 2007 in Reston, Virginia at a signing ceremony involving Barry West, Sprint Nextel's chief technology officer and president, 4G Mobile Broadband, Atish Gude, Sprint's senior vice president, Mobile Broadband, Bin Shen, Sprint's vice president, Product and Partnership Management, Dr. Shun-I Chu, ZyXEL Corporation's chairman, Howie Chu, ZyXEL USA's president and Munira Brooks, ZyXEL USA's senior vice president of sales, marketing and business development.

About Sprint Nextel
Sprint Nextel offers a comprehensive range of wireless and wireline communications services bringing the freedom of mobility to consumers, businesses and government users. Sprint Nextel is widely recognized for developing, engineering and deploying innovative technologies, including two robust wireless networks serving 54 million customers at the end of the second quarter 2007; industry-leading mobile data services; instant national and international walkie-talkie capabilities; and a global Tier 1 Internet backbone. For more information, visit www.sprint.com.

About ZyXEL Communications
ZyXEL Communications Corp. (TSE: 2391), headquartered in Hsinchu, Taiwan, is the world's largest residential gateway provider (In-Stat, 2006). 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.