Xtera Wins Subsea Deal

ALLEN, Texas -- Xtera Communications announced today that it is providing equipment and services for a multi-million dollar upgrade to the ARCOS-1 cable of Columbus Networks, Ltd.

The current ARCOS-1 Submarine Cable System, which is 94% owned by Columbus Networks, connects twenty-four (24) terminus locations throughout the Caribbean. The company offers advanced, high-speed capacity and IP services to telecom carriers, TV cable companies, Internet Service Providers and network integrators. Columbus Networks has contracted Xtera Communications to provide optical networking equipment to bolster the capacity and functionality of the network and the company´s ability to offer existing and emerging next-generation services. Xtera Communications will deploy its Nu-Wave XLS, all-Raman DWDM system, on 22 unrepeatered segments of the existing 8,600 km submarine cable connecting the United States with 19 countries in Central America and the Caribbean. Currently, the Nu-Wave XLS optical design capacity enables up to 300 Gbit/s on any given ARCOS-1 dark fiber pair. The system provides an ultimate capacity of 600 Gbit/s per fiber pair. These 22 ARCOS-1 sub-sea segments have 10 dark fiber pairs still available for future use. A mixture support of STM-16, STM-64 and native Ethernet IP transport will enable a multitude of next-generation services for information, communication and entertainment applications. Xtera will also provide engineering, test and commissioning services from its Professional Services organization.

"Xtera´s all-Raman technology provides the performance we require to support the high-quality bandwidth requested by our customers. It also provides a compact, low maintenance solution with high availability, high service flexibility, low configuration complexity and optimum on-going costs," said Paul Scott, Vice-President and COO, Columbus Networks. "We continue to experience huge demands for bandwidth and advanced applications in the Pan Caribbean-Americas region. This new Xtera platform, combined with the new sub-sea extensions we are constructing, positions us to meet the needs of our customers well into the future," added Mr. Scott.

Xtera Communications Inc. (Nasdaq: XCOM)