Actiontec Broadband Shipments Top 5 Million; 1 Million Sold Since October

Broad Line of IPTV-Capable Consumer Premises Equipment Fuels Rapid Growth

Mar 20, 2007, 01:00 ET from Actiontec Electronics, Inc.

    SUNNYVALE, Calif., March 20 /PRNewswire/ -- Actiontec Electronics today
 announced that it shipped its 5 millionth residential broadband
 connectivity product in February, marking an increase of 1 million units in
 just four months. Most of the surge was driven by the company's expanding
 line of IPTV-capable consumer premises equipment designed to support the
 rise of IP video, with products that make Actiontec the first vendor to
 support every WAN and LAN distribution standard including VDSL2, ADSL2+
 bonded, MoCA, HomePlug AV and HPNA3.
     Actiontec's business growth is also directly related to increasing
 penetration of residential broadband services in the U.S. A recent Parks
 Associates study reported that residential subscriptions to broadband
 Internet services surged 20% in 2006 to exceed 50 million U.S. households,
 with ongoing growth expected to turn more than half of U.S. households into
 broadband users by next year.
     "We sold 4 million residential gateways, modems and routers in our
 first decade in business, and then 1 million broadband gateways in the
 space of four months -- almost all of them directly to Tier 1 and Tier 2
 service providers. That demonstrates the reputation of our products in the
 marketplace as well as our ability to deliver CPE equipment that supports
 both the delivery and in-house distribution of pay TV services," said Dean
 Chang, Actiontec President and CEO. "We are clearly emerging as the CPE
 provider of choice for carriers' triple play initiatives."
     Last year, Actiontec introduced the first broadband router equipped
 with built-in support for the Multimedia over Coax Alliance (MoCA)
 networking standard that is being embraced as a leading alternative for
 delivering and/or distributing IPTV. The router's WAN MoCA support enables
 telcos with fiber networks to provide connectivity at speeds of up to 100
 megabits per second (Mbps) to meet the higher throughput demands of video
 content. The product's LAN MoCA connectivity solves the crucial "inside
 mile" problem associated with disseminating different content to different
 rooms in the house by distributing content over a home's existing coaxial
 cabling, eliminating the time and expense of stringing Ethernet cable.
     That router was adopted by Verizon to support the FiOS broadband and
 video services being delivered over its growing fiber-to-the-premises
 network. All new customers for the FiOS services now receive the Actiontec
 router as part of the installation.
     Earlier this year, Actiontec unveiled a series of ADSL+, ADSL2+ bonded
 and VDSL gateways to meet the needs of service providers of all sizes and
 infrastructures. The new products can manage traffic loads ranging from 24
 Mbps to 100 Mbps, support legacy telco delivery mechanisms as well as new
 fiber-to-the-curb/VDSL-to-the-house scenarios, and provide room-to-room
 content distribution with a choice of MoCA, HomePlug AV or HPNA3 networking
 in addition to Ethernet and WiFi connectivity.
     These features and others, including bandwidth prioritization and
 TR-069 remote management capabilities, enable efficient handling of both
 standard and HDTV programming.
     Other major Actiontec broadband connectivity products include the 54
 Mbps Wireless DSL Gateway, an all-in-one carrier-grade ADSL modem, router,
 wireless access point and firewall that was the world's first fully
 integrated instant home wireless networking solution; wireless-ready and
 wired-only DSL gateways; and single-user DSL modems. The company also sells
 home networking and Internet telephony products.
     About Actiontec Electronics, Inc.
     Actiontec Electronics develops products and services enabling consumers
 to leverage broadband Internet connectivity to simplify and enrich their
 lives. Covering the full spectrum of solutions for the digital life,
 Actiontec's products include broadband modems, home gateways, wireless
 networking devices, routers, VoIP adapters, and digital entertainment
 devices, sold through retail channels and broadband service providers.
 Founded in 1993, Actiontec is headquartered in Sunnyvale, CA, and maintains
 branch offices in Austin, TX; Colorado Springs, CO; Basingstoke, United
 Kingdom; Shanghai, China; and Taipei, Taiwan. For more information, call
 408-752-7700 or visit
     Lesley Kirchman
     Actiontec Electronics, Inc.

SOURCE Actiontec Electronics, Inc.