ZyXEL Sweeps Seven 2008 Taiwan Excellence Awards

WiMAX Router and IP Set-top Box also win silver awards

Hsinchu, Taiwan, June 16, 2008-- ZyXEL Communications (TSE: 2391), world's leading broadband access solutions provider, today announces its board-sweeping victory in the 2008 Taiwan Excellence Awards contest. This year, the company submitted seven products and they all became finalists: five are Excellent Awardees, while the MAX-206M2 Indoor WiMAX Router and STB-1010 Hybrid Set-top Box were presented Silver Awards.

Organized by Bureau of Foreign Trade of MOEA and executed by Taiwan External Trade Development Council (TAITRA), the Taiwan Excellence Award is a prestigious tribute to the outstanding quality and style coveted by industries, academia, designers and the like. The contestants were evaluated with criteria including R&D, design, quality and marketing performance; and the winning entries must be innovative enough to meet the four requirements and become eligible for consideration of the title.

As the 2008 judge panel emphasized more on the value of successful resource integration, its members gave ZyXEL extremely high scores during the evaluation stage. Standing out from the 601 entries this year, ZyXEL's MAX-206M2 WiMAX Indoor Router and STB-1010 Hybrid Set-top Box won the Silver Award of the year, while the ZyWALL USG2000 Unified Security Gateway, NSA-220 Pro Media Storage Appliance, NBG-460N 802.11n Wireless Gigabit Router, as well as the Unified Communications Solution (IP PBX X6004 and IP Phone V500) entitled as Taiwan Excellence of the Year. The honor not only manifests ZyXEL's ability to complete on innovation and quality, but also recognizes the sophisticated premium design of the ZyXEL range.

As a pioneer of new communication technologies, ZyXEL discovered the tremendous potential of WiMAX in as early as 2005 and strategically invested on the development of 802.16e mobile standard. As a result, ZyXEL is Taiwan's first to have the capability to develop and produce WiMAX products from base stations to customer premise equipments. In addition, ZyXEL has also become one of the major international suppliers of WiMAX devices. One of the awarded products, the MAX-206M2 Indoor WiMAX Router, is recognized not only for its cutting-edge WiMAX technology employed, but also for the stylish home-oriented exterior design.

In recent years, the "Triple Play" services incorporating voice, data and video delivery has been growing in a fast pace, while the prevalence of network infrastructure triggered the realization of digital television services and thus the competition among service operators. ZyXEL's STB-1010 Hybrid Set-top Box provides service operators a hardware and software development platform for versatile services such as digital video broadcasting, home networks, home electronics control, network video phone and karaoke, along with a combination of feature extensions including electronic commerce, online gaming and audio/video entertainments that enable service operators to offer media entertainments as well as a powerful "digital home" platform.

About ZyXEL Communications
ZyXEL Communications Corp. (TSE: 2391), headquartered in Hsinchu, Taiwan, is the world's leading residential gateway provider and was recently ranked as Taiwan's First "Green Enterprise," and the second best "Green" Company in Asia (2007 CG watch, Asian Corporate Governance Association). 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.