Vecima, Cisco Enter CMTS Deal

VICTORIA, British Columbia -- Vecima Networks Inc. (TSX:VCM), a leading Last Mile Solution(R) provider for broadband wired and wireless networks, today announces the signing of an agreement to supply a next generation upconverter module for use in the Cisco(R) family of Cable Modem Termination System (CMTS) products.

Cisco selected Vecima based upon the strength of their long standing relationship, Vecima's core competencies in digital signal processing techniques, high quality and cost effective RF circuit designs and significant embedded software expertise, as well as Vecima's extensive experience with high quality volume manufacturing processes.

"For over a decade, the partnership between Cisco and Vecima has succeeded in delivering the dominant CMTS product to the global marketplace. The signing of this new agreement is a testament to the strength of this ongoing relationship. We believe this arrangement optimally positions Vecima to be a leading supplier of DOCSIS based products, up to and including DOCSIS 3.0," said Dr. Surinder Kumar, Vecima's Chairman and CEO.

The state of the art technology being supplied to Cisco under this arrangement has been developed over the last several years, and is foundational to Vecima's forthcoming DOCSIS 3.0 family of products. This leading edge DOCSIS 3.0 technology is being demonstrated to Cisco.

Vecima Networks Inc. (Toronto: VCM)

Cisco Systems Inc. (Nasdaq: CSCO)