Amedia CEO Issues Update

EATONTOWN, N.J. -- In a letter to Company stockholders, Frank Galuppo, President and Chief Executive Officer of Amedia Networks, Inc. (OTCBB:AANI - News), a provider of switched Ethernet ultra-broadband solutions for the Triple Play Access Market, provided an update related to the Company's operations and growth strategy:

Galuppo noted that progress has been continuing at an encouraging pace, and that the leadership team "has been diligently laboring to achieve the business objectives that we have set for ourselves." He noted the three customer agreements for the Company's QoStream(TM) products in China, Brazil, and Mongolia.

Continuing to address the Company's progress, Galuppo added, "We have expanded our partnership program through new relationships in the US, as well as in China and Korea. Several of these collaborative arrangements have been facilitated by the talented team that we recruited this quarter to support our international business development. Our product line has also grown - both through the addition of a new product - the HG-V100 - as well as through the addition of features and capabilities to our existing QoStream products." Reviewing additional accomplishments, Galuppo reviewed the recent expansion of its US headquarters space by 25% to provide for a top tier customer technical support center.

In discussing the recent introduction of the HG-V100 product, Galuppo commented on the ongoing demand for equipment to support the copper-based infrastructure that still dominates much of the telephone companies' connections to homes and businesses. Referring to existing DSL equipment, he noted, "As that equipment is upgraded to the latest innovation in DSL services - VDSL2, we anticipate that a very promising market for a Home Gateway that can connect to these networks should develop. We believe our HG-V100, which we expect will become commercially available in December 2005, will be the first such product commercially available in the market with the range of capabilities and features that telephone companies have been actively demanding to support their ultra-broadband deployments. Immediate response to our announcement has been almost universally positive. This product is a testimony to the ability of our team to rapidly recognize and seize the opportunities that present themselves in this formative market."

Concluding his letter to the shareholders, Galuppo wrote, "Like you, I see the future and the opportunity this market holds. In-Stat/MDR, a leading market research firm, for example, estimates that worldwide shipments of Home Gateways will grow at 30% per year, reaching 18 million units by 2008. RVA, a leading expert on Fiber-to-the-Home deployments, estimates that $15B will be spent in 2009 on FTTH projects in just North America. But that is then, and this is now. I firmly believe that the market is just unfolding and defining itself. Now is the time when we need to execute on building a firm foundation to allow us to participate in this growth."

Amedia Networks Inc.