SALIRA ANNOUNCES GENERAL AVAILABILITY OF SALIRA 2000 PLATFORM RELEASE 2.2

China Unicom Selects Release 2.2 to Deliver Broadband Services to Five Cities in the Province of Guangdong

SANTA CLARA – February 11, 2004 – Salira Optical Network Systems, a leading provider of optical access systems, today announced general availability of Release 2.2 of the Salira 2000 Platform. Release 2.2 includes additional network interfaces, two new customer premises devices and a web-based management system. Salira also announced that China Unicom (NYSE: CHU) selected Release 2.2 of the Salira 2000 Platform to deliver broadband services in the province of Guangdong. Guangdong China Unicom will use the Salira 2000 Platform to deliver advanced IP-based applications such as high-speed Internet access and IP Video to business and residential customers in five cities including Foshan, Shunde, Nanhai, Shansui and Gaoming.

“The Salira 2000 Platform will enable us to deliver high-bandwidth services to our customers in an efficient and cost-effective manner,” said Li Qizhang, General Manager of Internet and Services, Guangdong China Unicom Foshan Branch. “We look forward to working with Salira as we enhance our service offerings in Guangdong province.”

Release 2.2 greatly expands the flexibility of Salira’s category-leading Ethernet Passive Optical Network (EPON) access system by supporting a wide variety of customer deployments and end-user applications. STM-1/OC-3 and T1/E1 network interfaces have been added to the platform to complement existing DS-3 and Gigabit Ethernet interfaces. The platform also adds two new Optical Network Units (ONUs) that reside at customer locations. The Salira 2330 ONU supports two T1/E1 ports and one Fast Ethernet port for single user FTTP deployments, while the Salira 2310 ONU is a field-deployable DSLAM that supports 24 ports of VDSL. Finally, WebSAM is a web-based version of Salira’s best-in-class network management system known as SAM (Salira Access Management).

“We welcome the opportunity to work with China Unicom to deliver advanced IP services in their Guangdong network,” said Ross Lau, Salira’s CEO. “The new capabilities in Release 2.2 of the Salira 2000 Platform will help us build on the successful relationships we’ve developed with China Unicom and other leading carriers in the Asia-Pacific region.”

The new network interfaces enhance the platform’s ability to extend the useful life of legacy equipment. By adding STM-1/OC-3 and T1/E1 interfaces, Salira enables carriers to match network services to actual customer demand profiles. Similarly, the new ONUs enable carriers to better serve customers by providing equipment that meets the specific needs of different customers. The Salira 2330 ONU is designed to provide FTTP service in single customer buildings, or in multi-tenant buildings in which customers demand a single-user device. The Salira 2310 VDSL ONU can be used to extend the reach of traditional DSL service, and it can be used to deliver broadcast video over DSL.

“Carriers in Asia are leading the drive to deploy IP-based systems, but the incumbent carriers still have significant investments in legacy infrastructure,” noted Wei Gao, Salira’s CTO and president of Salira Shanghai, Ltd. “Release 2.2 gives carriers added flexibility to deliver traditional TDM services even as they transition to future-oriented IP services, and the new ONUs in the product line will greatly enhance the ability of carriers to provide more flexible and cost-effective telecom services to small and medium-sized businesses.”

WebSAM, the platform’s newest management system, enables network administrators to access Salira equipment using standard browser software. This innovation provides secure access to equipment from any Internet connection for when personnel are away from the Network Operations Center (NOC). In addition, WebSAM is a cost-effective network management and element management system for small-scale starter deployments. WebSAM joins the client-based SAM system and the Command Line Interface (CLI) system in Salira’s full line of network management systems.

SALIRA ANNOUNCES GENERAL AVAILABILITY OF SALIRA 2000 PLATFORM RELEASE 2.2 The Salira 2000 Platform enables cost-effective transport for a variety of value-added services like leased line access and VLAN. The hybrid TDM + IP system extends the useful life of traditional equipment, while enabling a graceful migration to an IP-centric network architecture. Salira’s systems are used to deliver existing applications like PBX voice services, and emerging applications like IP video and high-speed Internet access. The Salira 2000 Platform also supports wireless backhaul and ring extension.

About China Unicom Ltd.
China Unicom Limited (NYSE: CHU) is a provider of integrated telecom services in China offering a range of services, including cellular telecommunication, international and domestic long distance, data communication, Internet and paging. China Unicom built the first nationwide CDMA network in China, the first nationwide integrated network platform supporting voice, data, Internet and video services, and the first nationwide commercial video conference system and video telephony system based on IP technology. Guangdong China Unicom is the operating division of China Unicom in the province of Guangdong.

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.