PacketFront Buys 42Networks

STOCKHOLM -- PacketFront, the pioneer of open access broadband networking, has acquired the Swedish company 42Networks, a provider of leading edge technology for voice over IP (VoIP). The acquisition reinforces PacketFront's position as a leader in end-to-end solutions for fiber-to-the-home (FTTH) networks. The acquisition will also enable PacketFront's customers to implement a leading VoIP solution as part of the company's suite of services, and will further invigorate its innovation and fuel future integration with related products.

42Networks develops and distributes cutting edge products and systems for VoIP (Voice over Internet Protocol) incorporated among other products in the DRG (Digital Residential Gateway) system. The DRG series, which allows operators and service providers to deliver multiple broadband services with enhanced security and high quality IP-telephony to residential and enterprise customers, has been on the market since 1999, and is now in its fifth generation. It was first developed within Ericsson Business Innovation and 42Networks was subsequently established after a management buy-out from Ericsson. Today, the company has 50 employees, with an annual turnover of 42MSEK in 2005 and an expected annual turnover of approximately 65MSEK in 2006.

"We are very excited to acquire 42Networks," said Martin Thunman, CEO of PacketFront. "We have been partners since 2003 and have always been very impressed with the quality of their products. Operators keen to offer a telephony service equal to the traditional analogue PTT network are very quality focused, and 42Networks' technology is among the best on the market.The combination of the cutting-edge VoIP technology and a similar company culture, makes this an excellent match."

PacketFront AB