ADVA AG Optical Networking (OJ:ADV) New flexible remote node unifies carriers' access and backhaul networks, delivering higher bandwidth to more customers with fewer active sites and lower power consumption

Norcross, Georgia, USA and Martinsried/Munich, Germany. September 29, 2008. ADVA Optical Networking today announced the introduction of its Flexible Remote Node (FRN), an extension of the ADVA FSP 3000 that enables network operators to cost-effectively introduce WDM-PON (Wavelength Division Multiplexing Passive Optical Networks) into their network. The FRN is a key element of future-proof FTTx (Fiber-to-the-x) concepts, allowing carriers to deliver larger amounts of bandwidth at a significantly lower cost.

In today's times of fierce price competition, higher upstream demands and regulatory pressure for local loop unbundling, carriers are challenged to consolidate their metro networks and rethink their access strategies. To ensure long-term profitable service delivery, communications providers must drive toward a strategy of converged access and backhaul for residential and business services, fewer active components in the access network, the elimination of local exchanges, reduced power consumption and space utilization.

"There is true benefit to having WDM in both the access and backhaul segments of the network," stated Christoph Glingener, chief technology officer of ADVA Optical Networking. "There have been several false starts in the industry regarding FTTx (Fiber-to-the-x) deployments; many solutions have shown limited scalability, introduced network complexity and increased operational costs. Our new unified approach, employing a WDM-PON solution, will enable service providers of all kinds to extend the benefits of WDM into the access network, thereby eliminating active sites and reducing overall network costs."

Fully integrated into the successful ADVA FSP 3000 platform, the FRN is part of a scalable Optical+Ethernet transport solution that enables communications providers to serve their residential, business and wholesale customers from a unified access and backhaul network. When located at the curb, the FRN can be configured as a purely passive network element with environmentally hardened WDM filters that allow the setup of a point-to-multipoint WDM-PON structure. When located at a street cabinet, the FRN can include active equipment such as optical amplifiers and active Ethernet technology that enable reach extension and traffic aggregation.

The introduction of WDM into the FTTx environment is a forward-looking and innovative concept that challenges current EPON (Ethernet PON) and GPON (Gigabit PON) concepts. EPON and GPON solutions use protocol-based traffic separation, which creates security concerns for high-end users. Bandwidth scalability is limited and affected by the demands of neighboring customers. Loss-intensive splitting and the absence of optical amplification limit the reach of such solutions to roughly 20km.

In contrast, a WDM-PON approach uses wavelength-based traffic separation implemented with wavelength-selective filters. Bandwidth-per-cabinet, -building or -end user can be scaled nearly indefinitely, while the reach can be extended to 100km or more. The combination of secure traffic separation, scalable bandwidth and extended reach enables carriers to serve a wider customer base from fewer active sites. It eliminates the need for purpose-built platforms and allows a streamlined network operation with fewer operational staff.

In times where the cost of energy to run network equipment and to climate-control the facilities that house them is skyrocketing, the elimination of active equipment and reduction in number of active network sites is attractive. But service providers can become more independent of rising energy costs with the integrated access and backhaul network approach that the FSP 3000 enables. A cohesive Optical+Ethernet transport approach with WDM-PON extension can deliver residential, business and wireless applications from a single platform. It is an ideal solution for communications providers looking for a future-proof network architecture.

More information about ADVA Optical Networking's unified access and backhaul approach can be found at http://www.advaoptical.com/default.aspx?id=1003.

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ABOUT ADVA OPTICAL NETWORKING ADVA Optical Networking (FSE: ADV) is at the forefront of providing Optical+Ethernet solutions that advance next-generation networks for data, storage, voice and video services. Our company's strength comes from passionate and dedicated employees, all sharing a common vision: a fast, customized response to customers' ever-changing needs. Our innovative FSP products and strong customer focus provide carriers and enterprises the ability to scale their networks and deliver intelligent, competitive new services. ADVA Optical Networking's solutions have been deployed at more than 200 carriers and 10,000 enterprises around the world. For further information about ADVA Optical Networking: www.advaoptical.com.

PUBLISHED BY: ADVA AG Optical Networking, Martinsried/Munich and Meiningen, Germany ADVA Optical Networking North America, Inc., Norcross, Georgia, USA ADVA Optical Networking (Shenzhen) Ltd., Shenzhen, China www.advaoptical.com

FOR PRESS: Christine Keck t +1 201 258 8293 (U.S.) t +44 1904 699 358 (Europe) t +86 755 8621 7400 (Asia) public-relations@advaoptical.com

FOR INVESTORS: Wolfgang Guessgen t +1 201 258 8302 (U.S.) t +49 89 89 0665 940 (Europe) t +86 755 8621 7400 (Asia) investor-relations@advaoptical.com

ADVA AG Optical Networking

www.advaoptical.com

ISIN: DE0005103006

Stock Identifier: XFRA.ADV

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