Sunrise Lands Video Test Deal

SAN JOSE, Calif. -- Sunrise Telecom® Incorporated (Nasdaq: SRTI - News), the leader in testing and monitoring solutions for voice, video, data services and next-generation digital multi-media, today announced that it has been selected as the sole supplier for video test solutions to support FTTx deployments at one of the world's largest North American-based telecommunications service providers. Sunrise Telecom's CM750 Installation and Service Verification Meter was selected for its intuitive user interface and automated analog and digital SLM (signal level meter) test capabilities. It will support an aggressive plan for video services rollout as part of the provider's triple play initiatives in numerous metropolitan markets across the country.

"This win clearly underscores the success of our initiatives in the emerging area of FTTx services testing, and demonstrates the confidence market leaders have in our equipment," said Paul Chang, president and CEO of Sunrise Telecom. "The combination of our broad installed base and our feature-rich testing and monitoring solutions positions Sunrise Telecom as a logical choice for other top North American service providers deploying FTTx networks."

The CM750 family of handheld test sets addresses the verification and troubleshooting of triple-play services and new customer turn-up, unlike other solutions which target the network construction stage of the FTTx roll-out. Since service providers must equip large teams of field technicians with tools to deliver high-quality, uninterrupted services to their customers, and because ASPs are higher, the post-deployment phase typically is associated with a substantially larger revenue potential for test suppliers.

"We have already begun receiving initial purchase orders against this win and expect a strong ramp in unit shipments in early to mid-2006, reflecting the FTTx deployment plans of our customer," said Rick Kent, Sunrise Telecom chief financial officer. "We anticipate this deal will have a moderate revenue impact in the second half of 2005, with a substantial increase in orders next year. We will provide more color on this win during our second quarter earnings call."

Sunrise Telecom Inc.