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Hargray Communications Deploys Xtend Networks T1 Solution for Cell Backhaul, Commercial Services

Hargray Communications Deploys Xtend Networks T1 Solution for Cell Backhaul, Commercial Services

ATLANTA and HILTON HEAD, S.C., Oct. 10 /PRNewswire-FirstCall/ -- Xtend Networks, a Vyyo company that provides advanced broadband solutions for the cable TV industry, and Hargray Communications, a cable system operator serving South Carolina markets, today announced the commercial deployment by Hargray of Xtend's solution for the delivery of symmetrical T1 (1.544 megabits per second) services over hybrid fiber-coaxial (HFC) networks.

Hargray, a provider of voice, video, data and wireless services, is using Xtend's T1 solution in its Beaufort and Bluffton, SC systems to backhaul its own cellular traffic from towers to the cable headend, over its existing coaxial cable plant. The Xtend solution enables Hargray to eliminate costs for leasing T1 services from third-party telecommunications providers, and creates a new revenue opportunity through the sale of T1 services to other cellular communications providers.

In addition, Hargray and Xtend Networks are working to develop other telco grade applications designed to help Hargray capitalize on serving the small to medium business (SMB) market.

"The cost savings we receive to backhaul our own cell sites, and the potential for additional revenue by leveraging our HFC networks to provide T1 service are very attractive to us," said Ed Heuck, vice president of technology for Hargray Communications. "Xtend's significant performance advantage in our trials of various solutions and its ability to enable us to deploy T1 services without delays or plant upgrades were key factors in our selection process."

"As a provider of carrier-class communications services for more than 52 years, Hargray places great emphasis on high-quality, highly reliable service," said Avner Kol, general manager, T1 Products for Xtend Networks. "Hargray chose our solution because it achieves the jitter and delay minimums necessary for voice quality services and provides new business opportunities at minimal cost. We look forward to working with Hargray to develop new applications for commercial customers."

The sale of T1 circuits to mobile carriers for the transport of mobile voice traffic between cellular towers and switching offices represents a $20 billion opportunity for cable over the next five years, according to GeoResults, an Atlanta-based consulting firm. Xtend's carrier class T1/E1 technology combines the company's XMTSTM family of products, headend modular systems servicing up to 48 T1 links, and the company's V3xx family of T1 modems to provide a low jitter, low latency solution that utilizes existing infrastructure and Xtend's T1 Network Management System.

To enable cable to capitalize on the growing cellular backhaul market, Xtend provides a complete value chain for the transport of mobile communications traffic from cellular towers to central switching locations. The cellular backhaul value chain capitalizes on relationships with GeoResults, Inc. for market data, MasTec, Inc. and Gibson Technical Services (GTS) for equipment installation, and Paradigm Telecom for contracts with cellular carriers.

About Hargray Communications

Founded in 1949, Hargray is an independent operating company that provides voice, video, data, wireless, high-speed Internet and directory publishing services to the residents and businesses of southeastern SC and GA. Hargray serves cities within a 100-mile radius of Hilton Head, SC, including Hilton Head Island, Beaufort, Bluffton, Savannah, Statesboro and others. The company is the country's 22 largest independent operating company. Hargray is headquartered in Hilton Head, SC. Additional information can be found at http://www.hargray.com/.

About Xtend Networks(TM) (A Vyyo(R) company)

Xtend Networks(TM) (http://www.xtendnetworks.com/) provides cost-efficient, innovative solutions that have been designed to expand up to two times the usable downstream bandwidth and increase up to tenfold the upstream bandwidth of typical hybrid fiber-coaxial (HFC) network architectures. Xtend's RF technology works with existing infrastructure to significantly increase upstream and downstream capacity, enabling cable system operators to economically deploy DOCSIS(R)-based symmetrical commercial services, HDTV and other bandwidth intensive services. Xtend Networks is part of Vyyo Inc.'s portfolio of broadband end-to-end solutions used by cable and wireless operators worldwide. For more information about Vyyo Inc., please visit http://www.vyyo.com/.

Safe Harbor Statement

Statements made in this press release relating to the future, including those related to the opportunities created for our customers given our ability to provide T1 services and to dramatically increase upstream and downstream bandwidth, are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties, as well as assumptions that, if they do not fully materialize or prove incorrect, could cause our business and results of operations to differ materially from those expressed or implied by such forward-looking statements. Risks that may cause these forward-looking statements to be inaccurate include among others: whether we will be able to move from development stage to deployment and establish commercial relationships with cable system operators; whether the cable industry will be willing and able to substantially increase the available bandwidth on their networks and do so using our alternative technology solution; the current limited visibility available in the telecommunications and broadband access equipment markets; the competitive pricing environment and slower than expected development of broadband wireless opportunities; the willingness and ability of operators to adopt our new technology and apply it in a manner that meets customer demands; whether cable system operators will successfully test and then deploy Xtend solutions to provide cellular backhaul and other services; Xtend's ability to produce and distribute its broadband products in the quantities, and with the quality control, desired by the market; and other risks set forth in Vyyo's annual report on Form 10-K for the year ended December 31, 2004, Vyyo's quarterly reports on Form 10-Q and other reports filed by Vyyo with the Securities and Exchange Commission from time to time. Vyyo assumes no duty to update these statements.

NOTE: All trademarks mentioned herein are the property of their respective owners.

DOCSIS is a trademark of Cable Television Laboratories, Inc.

Xtend Networks

CONTACT: Paul Schneider of Paul Schneider Public Relations, Inc.,
+1-215-702-9784, or mobile, +1-215-817-4384, or [email protected], for Xtend
Networks; or investors, Walt Ungerer, VP, Corporate Communications of
Vyyo Inc., +1-650-319-4029, or [email protected]

Web site: http://www.hargray.com/

Web site: http://www.vyyo.com/

Web site: http://www.xtendnetworks.com/

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