TOKYO, Japan and OTTAWA, Canada - January 17, 2005 - Galazar Networks® Inc. and Bussan Microelectronics Corp. today announced the signing of a strategic agreement to expand sales, marketing, customer support and logistics for Galazar's leading next generation SDH/SONET product line targeted at Japanese communications equipment vendors.

With many of the world's leading equipment vendors and carriers, Japan represents a strategic market for Galazar. The partnership with Bussan has resulted in a number of significant design wins that are already being deployed with global carriers. Galazar's Japanese partners and customers are designing carrier grade Ethernet over SONET/SDH communications equipment required for next generation broadband access services.

The strategic business agreement increases Galazar's commitment to expand the design win portfolio in Japan and provides additional support to our customers ramping to production volumes.

"A successful business relationship is built by partnering to help our end-customers source high quality technology, design, delivery and support of world class communications products that address the growing need for Ethernet over SONET/SDH services," said Yoichi Sakata, President of Bussan Microelectronics Corp. "The fact that our relationship began through the recommendation of mutual Japanese customers designing equipment using Galazar devices is a strong endorsement of the product line, the Japanese market place, and the dependable support we can jointly offer to our customers".

"We are honoured that Bussan Microelectronics, a subsidiary of Mitsui & Co., Ltd., one of the largest trading companies in the world has decided to partner with Galazar to deliver next generation SDH/SONET framers and mappers to Japan's leading communications equipment vendors," said Richard DeBoer, CEO of Galazar Networks. "The importance of strategic customer support and marketing efforts in Japan is critical to our customers ramping production deployment of Ethernet over SDH/SONET in the Japanese marketplace and in export markets outside Japan."

About Bussan Microelectronics Corp and Mitsui and Co., Ltd.
Bussan Microelectronics Corp., headquartered in Tokyo, Japan, is a subsidiary of Mitsui & Co., Ltd., one of the largest trading companies in the world. Bussan Microelectronics is a rapidly growing distributor of high technology semiconductor and computer products serving both industrial and commercial markets in Japan. The company's market focus is in the communications, automobile, personal computer and gaming industries. With strong relationships with leaders in the communications industry, Bussan Microelectronics is delivering Galazar's technology to manufacturers throughout Japan.

About Galazar Networks Inc.
Galazar Networks Inc. is a leading semiconductor vendor focused on framers for carrier grade Ethernet over SONET/SDH (EoS) and Multi-Service line cards. Our products support SONET/SDH, PDH (DS3/E3, DS1/E1), data (Ethernet, packet, private line) and SAN services (Fibre Channel, FICON, ESCON, Gigabit Ethernet). Galazar is a technology leader in Generic Framing Protocol (GFP), Virtual Concatenation (VCAT) of both High and Low Order paths, and Link Capacity Adjustment Scheme (LCAS). Galazar's products are ideal for Ethernet, SAN and Multi-Service CPE/CLE platforms as well as EoS, PoS and SAN line cards for ADMs, routers, MSTPs and Metro Core switches. For more information, visit www.galazar.com.

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