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Calix Completes Acquisition of Optical Solutions

February 21, 2006
Acquisition Significantly Expands Calix Access Product Portfolio, Makes Calix the Largest Telecom Equipment Supplier Focused Solely on Access

FEBRUARY 21, 2006, PETALUMA, CA—Calix today announced the completion of the acquisition of GPON market leader Optical Solutions. The operations of Optical Solutions have been fully integrated into those of Calix, which will maintain a development center in Minneapolis. Complementing the market-leading Calix C-Series multiservice access product family, Optical Solutions products will be marketed as the F-Series gigabit passive optical network (GPON) access systems. The F-Series products, along with a revolutionary new family of optical network terminals (ONTs) also announced today, significantly enhance the ability of service providers to rapidly deploy field-proven, high-value broadband services over either copper or fiber media.

[Note: For more information on the new Calix 700-Series GPON ONTs, see today's release entitled "Calix Unveils Industry's First 'Install Once, Never Go Back' GPON ONT."]

With the acquisition of Optical Solutions, Calix now has approximately 340 North American customers that have deployed more than 8,000 central office, remote terminal, and remote node systems supporting in excess of two million active subscriber interfaces. Representing over 23 million access lines, the Calix customer base includes 75 IPTV networks with approximately 100,000 active video subscribers and 180 FTTP customers with more than 90,000 subscribers in over 300 communities.

According to Calix president and CEO Carl Russo, "These two companies have come together quickly and seamlessly, allowing us to focus our attention on satisfying our customers' objectives. Our customers are focused on delivering a rich set of IP-based information, communication, and entertainment services over access networks built to be operated at the lowest possible cost."

A recent survey of US IOCs and ILECs conducted by Baird US Equity Research found that the combination of Calix and Optical Solutions ranks number one in buyer preference for DSLAMs, broadband loop carriers (BLCs), and FTTP equipment. In the increasingly important fiber access category, fully 58 percent of the service providers surveyed named the combination of Calix and Optical Solutions as their preferred supplier.

About Calix
Calix is the largest telecom equipment supplier focused solely on access solutions for broadband service delivery. Service providers deploy Calix access systems to enable a rich set of information, communication, and entertainment services and to expand their revenue base beyond connectivity. Calix access innovation helps service providers transform their networks from circuit to packet, from narrowband to broadband, and to drive fiber deeper into the network. Calix has deployed its solutions in hundreds of service provider networks throughout North America and has shipped more than two million ports. For more information, visit the Calix website at www.calix.com.

This press release may contain forward-looking statements that are based upon management's current expectations and involve risks and uncertainties. Forward-looking statements are based upon information available to us as of the date of this press release and we assume no obligation to revise or update any such forward-looking statement to reflect any event or circumstance after the date of this release. Actual results and the timing of events could differ materially from current expectations. Factors that could cause or contribute to differences include, without limitation, any difficulties encountered in combining the two companies, any difficulties encountered in product deployment, and any changes in customer and consumer needs and preferences.

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