PETALUMA, Calif. -- Corecess, Inc., a pioneer and major provider of IP broadband access solutions for the advanced services market, and Teknovus, the leading provider of semiconductors for broadband optical access networks, today announced that Korea Telecom (KT) has selected the Corecess S5 scalable IP multi-service access platform and Corecess 3800 series ONT powered by the Teknovus TK3700-series Ethernet Passive Optical Network (EPON) chipset for exclusive use in the mass deployment of KT’s Fiber-to-the-Home (FTTH) service. KT, Korea’s largest service provider, is using this equipment to build a nationwide broadband network for 2005 deployment that will deliver premium-grade triple-play services -- voice, data, and ultimately television -- to residential customers.

Mr. Yeong Bong Son, Executive Vice President of Corecess, stated, “Korea is leading the world in terms of broadband access penetration. To serve the world’s most demanding and sophisticated market, carriers like KT are introducing gigabit-speed fiber access-systems that offer a new and superior service set. We look forward to acting as KT’s partner as they begin building tomorrow’s broadband access network using Corecess solutions.”

Multi-service EPON is the natural choice for KT’s next-generation access network. To compete in the Korean market, a broadband platform must provide ultra-high-quality services, including copper-grade VoIP, advanced video services, and QoS-aware data services. At the same time, any new solution must compete on cost with other broadband platforms, such as DSL. Although a number of different system suppliers with a range of proposed solutions participated in the KT testing, after a thorough evaluation it was clear that the Corecess S5 FTTH platform and Corecess 3800 ONT using the Teknovus TK37xx-series EPON chipset best met the requirements and were ready for deployment in 2005.

Dr. Rex Naden, CEO of Teknovus, said, “There is no question that fiber-based broadband access is growing rapidly into a huge market for Asia and the rest of the word. It’s an extremely competitive market, but Teknovus has a strong advantage with the only EPON technology that enables triple-play services -- the key to future success for all service providers. We are honored that Corecess and KT have recognized the unique price/performance value of the Teknovus EPON chipset solution, and have selected us exclusively as partners.”

Corecess Inc.

Teknovus Inc.