Arthur Mutual Telephone Company Selects Pannaway's IP Access Solution to Deliver Converged Triple Play Broadband Services to Northwest Ohio

Next-generation Access Architecture to Allow Cost-Effective Delivery of High-Bandwidth Voice, Video and Data Services from Remote Terminals

Portsmouth, NH - January 16, 2006 - Pannaway Technologies, Inc., designers and developers of RUS listed, converged broadband voice, video and data platforms, today announced that Arthur Mutual Telephone Company has selected its multi award-winning IP packet-based, Service Convergence Network (SCN™) access solution to deliver converged Triple Play voice, video and data services to northwest Ohio residents in Defiance, Paulding and Putnam Counties. Arthur Mutual is part of Com Net, an Ohiobased consortium that recently announced a network solutions provider relationship with Pannaway. Com Net is made up of 21 independent local exchange carriers (ILEC) and one electrical cooperative, and provides operation support services to its shareholder and non-shareholder clients providing local telecommunications services.

Arthur Mutual will leverage Pannaway's customer-proven and lab tested IP packet access solution to seamlessly migrate its existing AFC DLCs to a next-generation, IP BLC system capable of supporting emerging Triple Play applications and advanced features. Arthur Mutual has selected Pannaway's 48-port Broadband Access Switch (BAS™) for the delivery of simultaneous ADSL2+ Internet, Primary Line VoIP with Lifeline/E911 calling and broadcast quality IP TV services. Additionally, the Ohio-based ILEC has selected Pannaway's industry elite Broadband Access Manager (BAM™) which is a sophisticated but extremely affordable broadband element management system (EMS) that enables telcos like Arthur Mutual to reduce the installation complexity and operational expenses (OPEX) associated with rolling out and maintaining voice, video, and data services.

"Providing flexible, high quality communications services to our loyal subscribers is absolutely paramount", said Janet Sholl, General Manager at Arthur Mutual. "We looked at several providers before deciding that Pannaway was the right partner for our company. Pannaway's commitment to affordable, next-generation IP access technology and its dedicated level of service and support will enable us to provide our customers with cutting-edge services that rival those offered by the larger cable and telecom providers in the region."

Arthur Mutual's new high-performance IP packet network will provide its subscribers with affordable bundled packages that include a variety of special service features, such as crystal clear digital picture quality and On-screen Caller ID, available only from a truly integrated communications and entertainment services provider.

"Our unique relationship with Com Net allows us to work with great companies like Arthur Mutual to provide the highest level of service and support which they in turn can pass onto their customers", said Joseph Russillo, Regional Sales Vice President at Pannaway. "Arthur Mutual is making great strides in Northwest Ohio at becoming a logical alternative to the more established telecom and cable providers and we're honored that our technology and support will play a big role in their continued success."

About Pannaway Technologies
Pannaway provides telco-grade, converged voice, video and data solutions to telecom service providers and emerging Triple Play services companies. Pannaway's multiaward winning, RUS listed and patent-pending IP technologies enable telecom providers worldwide to deliver profitable broadband services to homes and businesses at a fraction of their historical costs. Pannaway also delivers the industry's first end-to-end telco-grade VoIP solution with integrated Primary Line service for lifeline POTS support. The privately held company is headquartered in Portsmouth, New Hampshire, and has been building solutions and service/support programs to fit the specific needs of rural telcos since 2002.

For more information, please visit www.pannaway.com.