Pannaway's Comprehensive SCN(TM) Network Systems Approach Enables Valley Telephone Cooperative to Deploy All-IP Transport, 2.4 GPON and ADSL2+ System

PORTSMOUTH, NH--(Marketwire - October 25, 2007) - Pannaway Technologies, Inc., designers and developers of converged IP broadband access systems for telecommunications companies, announced today that Valley Telephone Cooperative, Inc. (VTCI), based in Raymondville, Texas, is leveraging its award-winning Service Convergence Network (SCN™) IP access system, which includes the recently acquired Inteleflex™ broadband loop carrier (BLC), to extend its high performance copper and fiber-based network throughout the southern regions of Texas. Since making the investment in the Inteleflex chassis and carrier grade equipment from Pannaway, VTCI has successfully migrated the majority of its ATM and TDM network to one that includes ADSL2+, 2.4 GPON, Gigabit Ethernet and IP at the core.

"Due to the innovation of the Pannaway products, we've successfully migrated our ATM core to a next-generation network that is based on IP," said Richard Cavin, Network Manager for Valley Telephone Cooperative, Inc. "We're proud of the fact that we are the first to deliver DSL Broadband service to 100 percent of our subscribers, and also the first in South Texas to offer Fiber-to-the-Home (FTTH). Without the high performance and scalability -- both of which are direct results of our new Pannaway network -- these milestones would not have been possible."

VTCI's network consists of Pannaway's Broadband Aggregators (BAR™) at the transport layer which deliver Gigabit Ethernet and can easily scale to 10 Gigabits; Pannaway's Broadband Access Switches (BAS™); Residential Gateway NIDs (RGN™) and the IP connected Inteleflex BLC, which delivers ADSL2+ and 2.4 GPON based Fiber-to-the-Home.

VTCI currently offers a full range of telecommunications services in 17 exchanges which cover approximately 7,300 square miles and touch 19 counties in South Texas. The telco selected Pannaway's SCN and the Inteleflex chassis to position itself as the leader in IP-based, high-speed broadband services in the region. Cavin explained, "We're very pleased that the Inteleflex chassis is now part of Pannaway's SCN architecture. Additionally, we've seen the company's product roadmap and we're confident in their ability to drive new IP integration and to extend the management capabilities of BAM (Broadband Access Manager) to include Inteleflex."

"New emerging applications such as HDTV and VoD are driving the need for additional bandwidth for our telco customers," said Mark Carpenter, President of Pannaway. "We are fully committed to providing complete and flexible solutions that empower our telco customers to easily migrate their networks at their own pace from ATM and TDM to an all IP solution, thereby unleashing a highly scalable and flexible broadband services network that will take them far into the future."

About Pannaway Technologies

Pannaway delivers customer-proven broadband access and transport solutions that enable wireless and wireline telecommunications service providers to offer new advanced services to their subscribers. Based on industry-standard IP (Internet Protocol) technologies, Pannaway's multi award-winning Service Convergence Network (SCN™) architecture enables providers to reduce expenses, increase revenue and compete more effectively through the delivery of converged services.

For more information, please visit www.pannaway.com

Contact Information: Contacts: Kevin Brown Pannaway Technologies 603-766-5142 kbrown@pannaway.com Dale Allaire BridgeView Marketing 603-766-3681 dale@bridgeviewmarketing.com