Actelis Networks Raises $22 Million to Support Corporate Expansion; Adams Street Partners Leads Prestigious Contingent of Tier-One Firms Investing in Actelis' Corporate Development Initiatives Designed to Strengthen Its Market Leadership Position

Fremont, CA - Actelis Networks®, the Global Leader of Carrier Ethernet over Copper solutions, today announced it has secured an additional $22 Million in private capital in a round led by Adams Street Partners along with all of Actelis' existing investors including ATA Ventures, Global Catalyst Partners, Dupont Capital, The Carlyle Group, Innovacom Venture Capital, Vertex, Walden International New Enterprise Associates, and Independent Venture Fund. Additionally, Thomas C. Dolson, the telecommunications investment partner for Adams Street Partners, will join the Actelis Board of Directors.

"Actelis Networks' solution uniquely combines the industry's most innovative transmission technology for bonded copper loops with full-featured Carrier Ethernet switching capabilities," said Mr. Tom Dolson, Partner Adams Street Partners. "Service provider customers continue to praise the company along with experts within the industry. Actelis only strengthens its position as the global leader of the Carrier Ethernet over Copper market with this infusion of capital to support continued corporate development and expansion."

Recent reports by Infonetics Research state that the Ethernet Access services market will grow to become an $8 billion annual market as carriers continue accelerating Ethernet services deployments worldwide.

"2007 will continue to be a breakout year for the leaders of the Ethernet Access market," said Michael Howard, co-founder and principal analyst at Infonetics Research. "Based upon our knowledge of contract activity last year, we expect that Actelis Networks will continue to be one of the worldwide market share leaders in this category again this year."

"The projects that we've recently announced with major customers around the world, demonstrate our leadership position in the rapidly growing global Carrier Ethernet over Copper market," said Tuvia Barlev, CEO of Actelis Networks. "The backing of our investment partners enables the expansion of our corporate infrastructure to support the continued growth of the market. It will also enable us to sustain our market leadership by expanding our manufacturing, customer support and sales capacity worldwide."

Actelis Networks became the global leader of Carrier Ethernet over Copper by providing service providers with the industry's most advanced solutions for extending Metro Ethernet networks over existing copper infrastructure. The Actelis Networks technology enables carriers to reach 100 percent of their subscriber base with a high performance and reliable connection and meet the demand for next generation Ethernet services.

About Actelis Networks
Actelis Networks® is the global leader of Carrier Ethernet over Copper™. Its telecommunications products allow service providers to extend the reach of their Carrier Ethernet network using the existing copper infrastructure to reach the majority of their subscribers. The company's award winning products combine the industry's most innovative EFMplus™ transmission technology for bonded copper with a robust set of standards-based Carrier Ethernet switching capabilities. Actelis' patented EFMplus technology employs advanced digital signal processing techniques and link level dynamic spectral management (DSM) to create reliable, high performance Ethernet connections without interfering with legacy services already deployed in the network. Actelis' Carrier Ethernet switching capabilities are certified compliant with Metro Ethernet Forum MEF 9 and MEF 14 specifications. As the industry leader, Actelis' solutions are deployed in more than 30 countries, on 6 continents around the world. Actelis Networks is a privately held company headquartered in Silicon Valley, California. www.actelis.com.

Actelis Networks, Carrier Ethernet over Copper and EFMplus are registered trademarks of Actelis Networks, Inc.

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