Sonus to Buy Zynetix

WESTFORD, Mass. -- Sonus Networks, Inc. (Nasdaq: SONS), a leading supplier of service provider Voice over IP (VoIP) infrastructure solutions, today announced a definitive agreement to acquire privately-held Zynetix Ltd, designers of innovative Global System for Mobile Communications (GSM) infrastructure solutions. Zynetix's newly developed and highly flexible IP-based GSM solutions, which have been designed for the most demanding applications in commercial and government wireless networks, are based on 3rd Generation Partnership Project (3GPP) architecture and incorporate all elements required to provision GSM service. The software- based solutions leverage the ubiquity of GSM handsets to provide enhanced services to end users. Sonus will integrate the Zynetix technology with its products to create leading solutions that address the end-to-end IP wireless access needs of GSM and 3G network operators worldwide. Unlike traditional Soft-Mobile Switching Centers (MSCs), which use IP only in the core of the network, the key benefit of Zynetix technology is that it leverages existing pico- and femtocell base station technology to extend IP into the broadband access networks. Mobile operators are embracing next generation solutions that leverage IP from the core of mobile networks all the way to customer premises to deliver rich multimedia services and greater cost efficiency, while paving the way towards IMS. Integrating Zynetix technology with Sonus' IMS portfolio is a critical step in the development of Sonus' wireless portfolio of 3G and GSM next generation solutions that address the demand for carrier-class, end-to-end IP based networks.

GSM is the most popular standard for mobile phones in the world with over 2 billion subscribers across more than 212 territories. The ubiquity of the GSM standard enables international roaming between mobile phone operators allowing subscribers to use their mobile phones in many parts of the world. As mobile subscribers continue to increase, mobile operators oversubscribe the bandwidth needed to accommodate local and national calls, leading to inefficiencies and cost. The Zynetix solutions allow local (short-distance) calls to be cost-effectively routed between mobile networks or the public standard telephone network (PSTN).

The acquisition demonstrates Sonus' commitment to the accelerating wireless IP-Voice market, which is a key part of Sonus' long-term growth strategy. Sonus wireless solutions provide global network operators with compelling cost savings and industry leading reliability as well as the ability to deliver advanced applications. Zynetix's solutions complement the capabilities of Sonus' wireless portfolio and extend Sonus' position in emerging wireless picocell and femtocell architectures. By integrating Zynetix's GSM software-based Mobile Switching Center (MSC) solutions with Sonus' industry leading IP-based wireless voice core infrastructure, the Company can develop end-to-end wireless solutions that leverage in-building or localized access to GSM networks with seamless connectivity to a broadband network and provide complete broadband-cellular convergence solutions. These solutions will address opportunities in both second generation (2G) and third generation (3G) markets.

"Wireless operators continue to rapidly expand their subscriber base, and those operators are under increasing pressure to streamline the operations of their networks, while rolling out new enhanced services that create additional revenue opportunities," said Hassan Ahmed, chairman and CEO, Sonus Networks. "By integrating Zynetix's solutions into Sonus' proven wireless portfolio, Sonus will accelerate the industry's migration to IP-Voice communications. Zynetix provides Sonus with a new and unique technology solution to expand its presence in the high-growth wireless market."

Sonus Networks Inc. (Nasdaq: SONS)