MOSCOW -- DATATEL JSC, one of Russia's largest systems integrators, and Riverstone Networks (OTC: RSTN.PK), a leading provider of carrier Ethernet solutions, today announced the two companies have entered into an OEM agreement under which Datatel will sell Riverstone's RS 3000 and 8000 series carrier Ethernet routers to the Russian market under the Datatel brand.

Under the terms of the agreement, Datatel, Riverstone's first Russian OEM partner, will sell Riverstone's RS 3x00 Metro Access and RS 8x00 Metro Aggregation Routers under the Datatel brands of DT-3100 Metro Access and DT-8x00 Metro Aggregation Routers respectively. The MPLS-based DT-8000 and DT-8600 provide up to 448 ports of fast Ethernet in one compact chassis that can be used in the access or aggregation layers of the carrier's network as well as in the metropolitan core. The DT-3100 provides carriers with the MPLS/VPLS technology at the network access layer necessary for the delivery of "triple play" -- the combination of voice, video and data -- services.

"Over the past few years, Datatel proved itself as a valuable reseller providing us with such Russian customers as Comstar," said Oscar Rodriguez, Chief Executive Officer, Riverstone Networks. "This next step in our relationship, moving from a reseller to an OEM arrangement, is designed to help us further penetrate the Central and Eastern European market by giving DATATEL the power to adapt product marketing to better meet the mindset of its customers in Russia, Belarus, Estonia, Kazakhstan, and Lithuania among others."

"As part of the agreement, DATATEL's staff will become fully certified on the DT-8x00 and DT-3x00 to provide first-rate support to our customers, which primarily consist of government agencies and providers of corporate services," said Vladimir Ryabinin Director of the IT department of DATATEL. "In addition, the close technical cooperation between the companies will enable us to better serve our customers and to have the Riverstone operating system software certified for use by our Russian customers. This agreement will help us further extend our market in Russia, possibly as soon as 2006."

Riverstone Networks Inc.