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Oki Partners with Calient Networks on Commercial Implementation of Photonic Switching

DiamondWave Tokyo, Japan and San Jose, California - November 6, 2001 -- Oki Electric Industry Co., Ltd. (TSE: 6703) and Calient Networks, a leading developer of intelligent, all-photonic switching systems, have announced the first contract sale of Calient's DiamondWave™ photonic switch. Oki will be Calient's primary OEM sales channel in the Japanese marketplace, and has already secured orders of several nodes for evaluation systems from two major Japanese carriers, Japan Telecom Co., Ltd. and KDDI Corporation.

Oki Electric becomes the first original equipment manufacturer in Asia to provide new optical networks using Calient's photonic switching system. The system enables service providers to achieve order-of-magnitude space, power and cost savings through its innovative MEMS (Micro-ElectroMechanical-System) hardware design. It also accelerates service provisioning and delivery of new wavelength services through the use of Generalized Multi-protocol Label Switching (GMPLS) software.


"This partnership combines Calient's cutting-edge product and Oki's strength in the construction, maintenance and service of optical networks," said Yoshikatsu Shiraishi, senior vice president of Oki Electric. "Calient's all-photonic architecture and use of advanced protocols help us improve carriers' cost-effectiveness as well as automating service delivery and enhancing the flexibility to offer new services."

Calient Networks and Oki Electric have worked together for one year, preparing for product integration, relationship-building and carrier trials in Japan. Oki aims to sell the DiamondWave switch extensively into major carrier optical backbones, targeting sales of nearly $400 million by 2005.

"It is essential for us to have a highly-respected and engaged partner like Oki Electric to successfully serve the demanding Japanese service provider market," emphasized Mike Matthys, Calient's vice president of international operations. "The Oki field force has deep experience in advanced optical applications, and a rigorous commitment to quality. Japanese carriers are placing a strong vote of confidence in our architecture, and in this era of economic conservatism, they are finding sufficient cost savings to enable deployment of dramatically newer, more powerful technologies."

About Calient Networks
Calient Networks is a leading developer of intelligent, all-photonic switching systems and software that help service providers scale their networks for explosive bandwidth demands and deliver new wavelength services. Calient's architecture and DiamondWave™ switching system provide a seamless, 'opto-electronic-to-photonic' migration path that is non-disruptive to legacy operations, and near-term opportunity for carriers to offer revenue-generating optical services from their photonic infrastructure. Founded in March 1999, the company is headquartered in San Jose, California. For additional information about Calient, visit www.calient.net.

About Oki
Founded more than a century ago in 1881, Oki Electric Industry Co., Ltd. is Japan's first telecommunications manufacturer headquartered in Tokyo, Japan. With more than 25,000 employees worldwide, Oki Electric provides customers with top-notch products and technologies for telecommunication systems, information systems and electronic devices through its corporate slogan "Oki, Network Solutions for Global Society."

Background of Demand in Japanese Market

Japan currently has over 30 million Internet users, and the increasing popularity and expansion of Internet use and other network services is generating a growing need for broadband transmission.

The DiamondWave™ is an industry-leading photonic switch including GMPLS functionality to implement next-generation all-optical networks. The optical switching module, the core of the device, is comprised of micro mirrors based on 3-dimensional MEMS technology. Its compact size (accommodating 1024 ports in a single rack), low loss (less than 3.5 dB) and non-blocking functionality meet the rigorous requirements of the Japanese carrier market.

Because the switch employs OOO technology (all-optical, transparent crossconnection of optical signals without conversion to electrical signals), it is fully bit-rate and protocol independent. Signals from various devices can be handled at one single optical interface. No expensive hardware swapping is needed for the addition of protocols, changes in speed or capacity in the future. OOO operation also ensures that power consumption is below 2W per port, thus cutting energy use to 1/10th the level of advanced OEO technologies.

The DiamondWave photonic switching system is the first commercially available switch fabric to include GMPLS functionality. This enables carriers to implement a single control plane across all network elements for standardized network discovery, connection signaling, inventory and management information-sharing. The system can be combined with routers supporting GMPLS and WDM equipment, to build a network optimized for carrier services. Network operator workload is significantly reduced because resources such as wavelength channels and bandwidth availability can be changed dynamically and instantly, responding directly to current network loads and failure status.

GMPLS also enables carriers to quickly and cost-effectively implement new services, such as wavelength leasing or time-based leasing of lines.

Glossary

· WDM (Wavelength Division Multiplexing)
A technology that separates different data streams into optical signals of different wavelengths and multiplexes them on one fiber cable.

· GMPLS (Generalized Multi-protocol Label Switching)
A protocol currently in the process of standardization at the IETF (Internet Engineering Task Force), used to exchange information and to route non-packet paths (lambdas, timeslots, fibers) for traffic engineering, provisioning and restoration purposes.

· MEMS (Micro-ElectroMechanical-Systems)
Micro-sized electromechanical systems (mirrors) based on nanotechnology.

* Calient Networks, the Calient Networks logo, and DiamondWave are trademarks of Calient Networks, Inc.



Press Contact:
Oki Electric Industry Co., Ltd.
Public Relations Division
Phone: +81-3-3580-8950

Information in the press releases is current on the date of the press announcement, but is subject to change without prior notice.

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