Colt Deploys Actelis’ Carrier Ethernet Over Copper Boosting First Mile
Access Up To 40 Mbps Symmetrical Service

Actelis Patented EFMplus Technology Will Enable COLT to Offer Advanced Data and Converged Services over Copper to more European businesses; successfully introduced in Belgium

FREMONT, CA, September 28, 2006 - Actelis Networks®, the leading provider of Carrier Ethernet over Copper™ networking solutions, today announced its successful participation in the Metro Ethernet Interoperability Demonstration overseen by Deutsche Telecom subsidiary T-Systems and EANTC, an independent test laboratory in Germany. Actelis brought its innovative Carrier Ethernet over Copper solution based upon its patented EFMplus™ technology. The EANTC demo, which is dominated by optical networking equipment, documents the interoperability of the Actelis Carrier Ethernet switches with those provided by the other 20 participating companies. Even more importantly the demo highlights the ability of the Actelis gear to provide high performance, low latency, reliable Ethernet over Copper to support the triple play of voice, video along with data access.

"The Actelis Carrier Ethernet over Copper equipment represents an important piece of the Metro Ethernet solution'" said Carsten Rossenhoevel, Managing Director of EANTC. "Copper access enables operators to extend the reach of Ethernet services over existing infrastructure. Actelis Networks' continuing participation in the EANTC demo shows that their technology is completely interoperable with fiber based systems and delivers high performance and reliable Ethernet service over both fiber and copper media."

Service providers and enterprises have spent billions installing fiber optic cabling to extend the reach of Ethernet services, yet the vast majority of small and medium size businesses (almost 90% of the customer base) still do not have access to fiber and have access only to copper facilities. Installing fiber to reach these customers is extremely costly and time consuming, putting Ethernet out of reach of most subscriber. The MEF interoperability demo provides an important validation of Ethernet in the First Mile technology, the de-facto standard for Carrier Ethernet access.

In the demo, Actelis' equipment was configured with both EFM copper and fiber to deliver Ethernet services to both copper and fiber based subscribers. This capability provides a future proof solution enabling 10-45 Mb Ethernet service over copper and the capability to expand to 100 Mb or 1Gb over fiber without changing the Ethernet Access Device at the customer premises.

Actelis' products are based upon advances in copper telecommunication technology from the IEEE 802.3ah Ethernet in the First Mile standard along with Carrier Ethernet switching specifications developed by the MEF. "The combination of these two recent Ethernet technologies by Actelis in our EFMplus based Carrier Ethernet over Copper product line make it feasible and economically attractive to deliver Ethernet services over voice-grade copper infrastructure," said Craig Easley, AVP of Actelis Networks. "Actelis' portfolio of innovative products are being used throughout the world to deliver high performance, highly reliable Carrier Ethernet services over the existing copper plant to support a variety of next generation applications for both business and residential subscribers."

About COLT
COLT is a leading European provider of business communications. COLT specialises in providing data, voice and managed services to midsize and major businesses and wholesale customers. It has more than 50,000 customers across all industry sectors. COLT owns and operates a 13-country, 20,000km network that includes metropolitan area networks in 32 major European cities with direct fibre connections into 10,000 buildings and 14 COLT data centres.

COLT Telecom Group S.A. is listed on the London Stock Exchange (COLT). Information about COLT and its services can be found at www.colt.net.