New AFC 48 Retrofit Kit from Pannaway Provides Telcos with a Smooth Upgrade Path to Next-generation Broadband Services

Telcos can Extend Life of Deployed AFC 48 Cabinets and Reduce CAPEX and OPEX Associated with New Cabinet Deployments by 60%

Portsmouth, NH - March 20, 2006 - Pannaway Technologies, Inc., designers, developers and providers of next-generation, converged broadband systems to telecommunications companies, today announced the availability of its SCN-RetroCAB™ (Service Convergence Network), a highly-affordable Triple Play retrofit kit for deployed AFC 48 cabinets. This new retrofit kit enables telcos to install high-performance, IP-Ethernet-based Triple Play broadband networks into their existing AFC 48 cabinets at a 60% cost reduction when compared to new "rip and replace" cabinet deployments. This claim is based on the cost associated with decommissioning an AFC 48 cabinet; site preparation for the new cabinet; cost of the new cabinet including rectifiers, batteries, line protection, category 5E cabling, and labor costs for the new installation.

Using a pre-packaged kit, Pannaway's multi award-winning IP Ethernet access products are installed into existing AFC 48 cabinets enabling telcos to deliver ADSL2+ and/or POTS services to up to 48 subscribers. Once upgraded, the system provides significantly enhanced network flexibility and performance while preserving the telco's initial cabinet investment. Pannaway's flexible line of IP-BLC (broadband loop carrier), IP-DLC (digital loop carrier) and IP-OLT (optical line termination) products interoperate seamlessly to deliver a solution that is engineered for future growth. Newly upgraded AFC 48 cabinets will deliver a wide variety of new features including Primary Line VoIP^SM with guaranteed Lifeline calling and E 911 services, all digital IP TV with Ring Trip avoidance technology and backhaul transport that scales from 1 to 10Gps.

"This innovative retrofit kit from Pannaway will provide us with new found flexibility while significantly reducing our outside plant costs as we roll out new IP Ethernet services", said Michael Walton, General Manager of Coleman County Telephone Cooperative. "We now have the option of delivering high-performance voice, video and data or a combination of the three to our most rural subscribers and we can do so at a fraction of the cost of a deploying a brand new cabinet."

Pannaway's SCN-RetroCAB for AFC 48 cabinets includes:

• High output -48VDC rectifier/battery charger unit
• Duplex AC GFCI convenience outlet
• Multi-position AC load center with circuit breakers
• Cabinet alarm module
• Protection block
• CAT5 cabling
• Mounting brackets

In addition to its SCN-RetroCAB announcement, the company is introducing the Pannaway X-CAB™, a line powered enclosure that supports up to 96 port-selectable ADSL2+/POTS/IP TV or POTS only (VoIP-enabled) combo subscribers. X-CAB's flexible mounting options and line powered capability simplifies the process and cost associated with shortening loop lengths. This innovative design significantly increases bandwidth capacity for improved performance of broadband information, communication and entertainment services.

"Rural telcos are searching for the most cost-effective technologies and outside plant options that will allow them to reach all of their subscribers with new, high-margin broadband triple play services", said Jeff Heynen, Directing Analyst, Broadband and IPTV, at Infonetics Research. "Pannaway's AFC 48 Retrofit Kit combined with the new X-CAB gives telcos immediate, simplified, and cost-effective access to these new services while intelligently leveraging existing OSP investments."

Pannaway's customer-proven access solutions are optimized for outside plant deployments allowing existing cabinet installations to remain in place while telcos seamlessly transition to high-bandwidth IP-Ethernet services. With its maneuverable compact design, technology flexibility and low power requirements, the Pannaway X-CAB is ideal for telcos looking to cost-effectively deploy advanced broadband services to rural communities with low line-count requirements.

"Telcos are searching for innovative and economical ways to stretch their network bandwidth capacity to meet requirements for new-generation IP services", said Kevin Brown, Vice President of Marketing at Pannaway. "Our SCN-RetroCAB will accommodate this need while our X-CAB provides a simple, low-cost way to extend the service life of existing remote cabinet installations."

Pannaway's SCN-RetroCAB™ for AFC 48 cabinets is generally available today and its X-CAB™ will be available in Q3, 2006. Contact Pannaway for additional information.

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.