TXP Revenues Up 70%

Revenue increase of 70% in the three months ended June 30, 2007 compared to the three months ended June 30, 2006;

Increased customer base to 117 as of June 30, 2007 from 89 as of June 30, 2006;

Signed re-seller agreements with two leading Original Equipment Manufacturers (OEMs) of telecommunications infrastructure for distribution of TXP's Optical Network Terminal (ONT) units;

Signed distribution agreement with Eastern Telecommunications to sell ONT products and outside plant cabinet retrofit solutions;

Launched 7200G family of mini-size Power-over-Ethernet (PoE) based Gigabit Passive Optical Network (GPON) ONTs;

Completed detailed triple play interop testing with 10 leading Optical Line Terminal (OLT) equipment vendors;

Obtained ISO 9001:2000 certification for TXP-Texas Prototypes and TXP-Retrofit Solutions groups; and

Hired two key sales executives.