ZyXEL Showcases its Next Generation Multi-service Product to Enable Service Providers to Profit through Differentiation at BBWFE 2009

Hsinchu, Taiwan, August 31, 2009-- ZyXEL Communications (TSE: 2391), a world leader in broadband access solutions, today announces it's participation in the Broadband World Forum Europe (BBWFE) 2009 exhibition. BBWFE, the one of Europe's premier conference and exhibition events for the telecommunications industry will be taking place in CNIT La Défense, Paris, France from Sept. 7 until 9 this year.

As the event focuses on convergence and interoperability of carrier networks, ZyXEL (on booth 626) will introduce a wide range of demonstrations and solutions to show how it helps telco operators and service providers to deliver more comprehensive services and enhanced user experiences.

With the theme of "Innovative Service Enabler- Profit through Differentiation", ZyXEL will present its end-to-end solutions for the different network topologies including AON, PON, xDSL, WiMAX and 3G Femto. ZyXEL will also present the new concept of Multi-service Application with the hottest ZyXEL Multi-service gateway, the MSG-1000. The ZyXEL Multi-service gateway supports ZyXEL's digital home products including the Wireless N Router, Powerline, Storage, Digital Media Adapter, and VoIP allowing ZyXEL's full end-to-end solution to be showcased.

"In this year's BBWFE show, ZyXEL would like to highlight a key point to visitors that as a complete service-aware IP network solutions provider we are well-position to help operators offer subscriber-oriented services to their customers." said Dr. Yuh-Long Chen, ZyXEL's president. "With our wide-ranging access network solutions, our customers will deliver a differentiated market approach to meet the needs of their end users, to provide a more enjoyable and profitable customer relationship and increased sales and profits."

ZyXEL's innovative products to increase telcos and service providers' profit include:

ZyXEL Multi-Service Gateway - MSG-1000
ZyXEL MSG-1000 is a highly integrated Service Gateway for FTTH application that responds to user demands for integrated internet and voice over IP service devices. Recognized as a finalist of the InfoVision Awards of BBWFE 2009 for its new design concept, the future-proof FTTx CPE designed for next generation network to fit different stage of broadband access for different service providers and end-users requirements.

ZyXEL Environmental-Hardened Remote VDSL2 DSLAM -VES-1616
Advanced internet applications like as IPTV and Triply-play have increased in most major markets worldwide. Telcos and ISPs need to respond to this change in the market and invest in equipment with next-generation technologies to fulfill the high bandwidth request. ZyXEL's VES-1616 is a VDSL2 DSLAM segmented for the "Last Mile" of high bandwidth demand leveraging fiber optic and VDSL networks. By easily mounted to the wall of building or pole and designed to be resilient to temperature changes, this product helps operators to optimize deployment and maintenance cost. This product delivers the best solution to end-users and broadens the market as a revenue-driven tool.

About ZyXEL Communications
ZyXEL Communications Corp., founded in 1989 and headquartered in Taiwan, is the leading provider of complete broadband access solutions. 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 of Telco, SME/Enterprise, and Digital Home for a wide range of deployment scenarios. Telco solutions include Wired and Wireless Access Network Equipments, Networking Customer Premises Equipments, and Carrier Switches. SME and Enterprise solutions include Unified Security Gateway, LAN Switches, WLAN, and IP Telephony. Digital Home solutions include Network Connectivity Devices and Multimedia Solutions.

The company has 3200 employees and distributors in 70 countries, reaching more than 150 regional markets. The ZyXEL Communications Corp. includes 32 subsidiaries and sales offices and two research and development centers worldwide. For more information, visit the company's Website, http://www.zyxel.com.