OTTAWA, Canada - August 23, 2005 - Galazar Networks® Inc. announced the expansion of its broad portfolio of multi-service access solutions with the introduction of CompactNode™ and MicroNode™. These SONET/SDH networking solutions are ideally suited for carrier grade access and aggregation networks demanding Ethernet services and advanced SONET/SDH networking.

Network equipment providers have been seeking highly integrated solutions that effectively meet the complete needs of compact Micro-MSPPs. CompactNode and MicroNode were developed in collaboration with leading Network Equipment Providers and premier technology partners to meet those needs. The result is two of the most effective solutions available for implementing Network Elements within next generation Ethernet Transport networks.

"With these product announcements, Galazar is establishing a new model for customer needs fulfillment," said Richard Deboer, CEO, Galazar Networks Inc. "Our technology partners were crucial in delivering the feature integration and mixed signal performance necessary for the target applications. We're looking forward to continuing success through similar collaborations."

MicroNode includes all of the elements necessary for implementing an OC-3/STM-1 Network Element with Ethernet and PDH clients including; direct hot-pluggable SFP interfaces, full HO/LO cross-connect, full HO/LO GFP/VCAT/LCAS capability, tri-mode Ethernet MACs with rate control, Stratum-3 CSU, DS1/E1 interfaces, and a Telecom Bus for PDH expansion.

CompactNode extends these capabilities to enable an OC-12/STM-4 Network Element with the same client interfaces plus a protected OC-3/STM-1 tributary interface. The hot-pluggable SFP interfaces also support multi-rate operation (155Mbps and 622Mbps).

These rich feature sets are fully integrated into Galazar's network proven device management software, allowing rapid development of robust Network Elements. Galazar's device management software supports advanced hardware abstraction capabilities, commonly used network equipment features, and extensive troubleshooting tools and is deployed in over twenty service provider networks worldwide. Close interworking with several Tier 1 network equipment providers has contributed to the features and quality embodied within Galazar's complete solutions.

AVAILABILITY
CompactNode and MicroNode are in production and shipping in volume.

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.

MEDIA AND ANALYSTS: Corporate and Product fact sheets and pictures available by request.

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