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Mahi Networks and Covaro Networks form Alliance to Enable Profitable Ethernet over SONET Services
Two Companies Demonstrate Intelligent Ethernet Solutions at SUPERCOMM 2004

CHICAGO, June 22, 2004 - The challenge of delivering Ethernet services profitably over SONET finally has been overcome. Mahi Networks, a leading supplier of multi-service optical transport and switching solutions, and Covaro Networks Inc., which enables carriers to deliver intelligent Ethernet services profitably and ubiquitously, announced today that they have formed a Strategic Performance Alliance to promote intelligent interoperable solutions for Ethernet over SONET. The two companies will demonstrate these solutions at SUPERCOMM 2004 in Mahi’s booth, No. 24442– South Hall.  Covaro Networks will have additional Ethernet service demonstrations in its booth, No. 20911 – South Hall.

“We’re excited to be joining Covaro Networks to promote and deploy enhanced data services over SONET networks,” said Mahi Networks Vice President of Marketing Ron Longo. “Mahi’s Mi7TM and Covaro’s Etherjack® systems provide a very compelling end-to-end solution that is going to change the way carriers deploy Ethernet services. No more proprietary book-ended solutions or overlay networks. Mahi has long been a proponent of multi-vendor interoperability at the SONET layer, and we are happy to be working with Covaro to extend this level of cooperation and interoperability to the packet layer.”

“By aligning with a leading optical switching company like Mahi Networks, we have the opportunity to further demonstrate our claims of enabling intelligent Ethernet services to be delivered over any facility – in this case, SONET,” said Covaro Networks Vice President of Marketing Fred Ellefson. “Mahi’s approach – enabling carriers to deploy Ethernet profitably – lines up with our own approach, and our technologies complement each other quite well. Alliances like this one between our two companies are hastening the arrival of the day when carriers around the world are able to reap real rewards from the delivery of Ethernet services.”

The Mahi Mi7 Multi-Service Core Aggregation System serves as an aggregation device for SONET rings transporting Ethernet over SONET and delivers differentiated mass-market data services over a carrier’s embedded SONET infrastructure without the need for a separate expensive data overlay network. The Mi7’s unique dual-mode TDM/Packet architecture provides a full-suite of packet processing, traffic management and statistical multiplexing across every DS3 TDM, SONET and GbE interface, enabling carriers to deliver new services at compelling low price-points with minimal manual intervention, and without the need for discrete, expensive, and cumbersome layer 2 switching equipment at every hub location.

Covaro’s CC-16000, seated at the edge of a carrier’s network, provides a wide range of services to small, medium and large businesses. These services include 10/100/1000BT Ethernet, GbE, 100FX, Ethernet Metallic eXtensions (EMX), DS1, DS3 and OC-3/12 (STM-1/4). With extended temperature, flexible mounting and cabling options, the CC-16000 can reach customers from central office locations, co-located equipment spaces, outside cabinets and basement-located equipment in multi-tenant offices. The CC-16000 includes eVision, Covaro’s element management system, which provides local and remote operations, administration, maintenance and provisioning capabilities.

About Covaro Networks
Covaro Networks enables service providers to create new revenue streams by offering intelligent Ethernet services over copper, fiber and leased DS3s/DS1s. Using Covaro’s unique Etherjack® Products and Technology, carriers can offer intelligent services ubiquitously, providing consistent service level agreements, regardless of delivery rate, facility type or transport technology. In addition, the patent-pending Etherjack® Technology improves operational efficiencies by allowing carriers to provision, monitor, fault locate and manage Ethernet services with familiar operations methodologies. Covaro Networks is headquartered in Richardson, Texas, in the Telecom Corridor®, and maintains additional development staff in Ottawa, Canada. For additional information, visit www.covaro.com.

About Mahi Networks
Mahi Networks, Inc. develops and markets multi-service metro transport and switching platforms that enhance the business models of service providers worldwide. Mahi's Mi7 and Vx7 products, integrated intelligent control plane, advanced network management platforms, and easy to use network planning tools provide industry-leading packet and TDM integration with fully automated optical services. Mahi couples its innovative technology with flexible applications that enable service providers to efficiently manage the transition to a simpler, lower cost, and converged infrastructure, thereby enabling accelerated service fulfillment and significantly greater value creation for service providers stockholders. Mahi Networks, Mi7, Vx7 and the Mahi Networks logo are either registered trademarks or trademarks of Mahi Networks, Inc. in the United States and\or other countries. The names of actual companies and products mentioned herein may be the trademarks of their respective owners. For additional information please visit or website at www.mahinetworks.com.