CHINA TELECOM OPERATING UNIT HUNAN TELECOM SELECTS SALIRA TO DELIVER BROADBAND SERVICES IN HUNAN PROVINCE

Systems Used to Deliver High-Speed Internet Services for China’s Fifth Inter-City Games

BEIJING – NOVEMBER 12, 2003 – Salira Optical Network Systems, a leading provider of optical access systems, announced today that Hunan Telecom (Changsha) selected the Salira 2000 Platform to deliver broadband services during the Fifth Inter-City Games of the Republic of China. The multi-venue athletic tournament was widely viewed as a prelude to the Olympic Games that China will host in Beijing in 2008. Hunan Telecom, the operating unit of China Telecom Group (CTG) in Hunan province, installed the data communications network for the tournament to allow participants and organizers to transmit results, distribute news reports and access the Internet in the main stadium.

“Salira’s products performed at the highest levels during this showcase event,” said Yong Li, Deputy Chief Engineer of Hunan Telecom’s Changsha Branch. “Salira has an advanced PON architecture that was well-suited to the situation, and the company will be an important part of our infrastructure improvements in Hunan province going forward.”

China’s Inter-City Games is an athletic event similar to the Olympics that is held every five years. Participants from cities across China compete in a variety of athletic events over the course of ten days. This year’s tournament attracted a record 3,000 athletes from 70 cities throughout China.

“Salira’s participation in the Fifth China Inter-City Tournament is an important milestone for the company,” said Wei Gao, President of Salira Shanghai Ltd. “We look forward to continuing our work with Hunan Telecom in Changsha City and beyond.”

The announcement was made as Salira demonstrated the Salira 2000 Platform at the PT Wireless & Networks Comm China 2003 event in Beijing (China International Exhibition Center, booth 8A36). At the show, Salira is demonstrating the advanced capabilities of the system including Native Mode TDM services, Gigabit Ethernet capacity for IP-based applications and integrated “triple play” broadband services. In addition, representatives are discussing how the Salira 2000 Platform enables service providers to achieve positive return on their investment in less than a year, including all associated Cap Ex and the cost of feeder and distribution fiber.

About Hunan Telecom
Hunan Telecom is the operating unit of China Telecom Group (NYSE: CHA) in Hunan Province. The company, which has more than 23,000 employees, offers a wide variety of telecommunication services including local and long-distance phone service, ISDN, ADSL, Frame Relay, DDN, high-speed Internet access and leased line service. In addition, Hunan Telecom offers telecom-related services including systems integration, consulting and technology development.

About Salira Optical Network Systems, Inc.
Headquartered in Santa Clara, California, Salira builds broadband systems that are used to deliver advanced voice, video and data services to business and residential customers. Salira’s systems give carriers the ability to offer traditional TDM services and advanced IP-based broadband services in one integrated, cost-effective system. Salira Shanghai, Ltd., a subsidiary of Salira, performs manufacturing, R&D and customer support functions, and has responsibility for marketing and sales in the Asia Pacific region.