Actiontec Ships 4 Millionth Broadband Gateway

Volume Has Doubled in 12 Months, Fueled by New Customers, Retail Program & Fiber Product

SUNNYVALE, CA (October 9, 2006) — Actiontec Electronics shipped its four millionth residential broadband connectivity product this month, doubling cumulative shipments of its broadband gateways, modems and routers in a single year. The jump reflects ongoing expansion of Actiontec’s Telco business with Tier 1 service providers as well as new Tier 2 customers, new retail fulfillment programs that Actiontec is running for several service providers, an increase in online sales of Actiontec-branded products to consumers, and introduction of the market’s first fiber-enabled broadband router in support of telcos’ triple play initiatives.

“We have recognized the need for carrier-grade consumer connectivity solutions for almost a decade now, and have been at the forefront of developing solutions for dial-up, DSL, and now fiber-based broadband connectivity. Our strong market presence is directly the result of to our strategic vision, the ability of our engineering staff to innovate, and our ability to efficiently develop diverse distribution channels,” said Dean Chang, Actiontec President and CEO. “With the emergence of IPTV and our status as the first vendor with a triple-play gateway enabling the delivery and in-house distribution of multiple simultaneous high-definition video streams, we are also continuing our history of delivering value to millions of broadband consumers world-wide. ” Last year, Actiontec announced availability of the first triple-play broadband router equipped with built-in support for the Multimedia over Coax Alliance (MoCA) networking standard that is emerging 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), making it possible 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 earlier this year 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. Actiontec has also returned to the brick-and-mortar retail channel through brand licensing agreements with several service providers. Under this arrangement, Actiontec supplies telcobranded DSL equipment for consumers who sign up for high-speed DSL service in retail stores. Actiontec negotiates the retail relationships and manages the fulfillment process, based on its own long-term affiliations with leading mass market retailers such as Best Buy, CompUSA, Circuit City and Radio Shack.

These agreements extend existing relationships under which Actiontec supplies DSL customer premises equipment through a service provider's internal channels. They also reinforce telcos’ strategy to compete with cable companies for broadband subscribers in retail outlets. 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; and the VoSKY family of Skype-certified products that allow consumers to make Internet calls anywhere and anytime, sold through online and retail channels. 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 http://www.actiontec.com.

PRESS CONTACT:
Lauren Tascan
S&S Public Relations, inc.
514-932-1174
lauren@sspr.com

COMPANY CONTACT:
Lesley Kirchman
Actiontec Electronics, Inc.
408-548-4739
ljkirchman@actiontec.com