Hubei CATV Deploys Riverstone Routers to Deliver Competitive Business Services

Hubei CATV Deploys Riverstone Routers to Deliver Competitive Business Services

Cable Provider Expands Service Portfolio, Customer Base

BEIJING, July 7 /PRNewswire-FirstCall/ -- Carrier Ethernet pioneer Riverstone Networks, today announced that Hubei CATV, the incumbent cable operator of the province, has selected Riverstone's MPLS-based Ethernet routers to provide the infrastructure for its new VPN service offerings. Hubei CATV will begin offering E-LINE and E-LAN services to enterprises in eight cities as part of its strategy to grow its revenues and customer base by expanding from residential cable and Internet access services into the business services market.

The choice of an MPLS-based Ethernet infrastructure will provide Hubei CATV with the opportunity to price the new data services without compromising their margins. In addition, using a combination of Riverstone's RS and ES access routers, Hubei CATV will be able to match the appropriate level of network functionality to the requirements of each locale, thereby maximizing its investment dollars.

"To successfully penetrate the business services market, we need to be able to attract customers with competitive pricing while still providing them with the high bandwidth and reliability they need for their mission critical traffic," said Wending Xiong, Chief Engineer, Hubei CATV, Huang Shi Branch. "The Riverstone solution combines the reliability, scalability and QoS of MPLS with the inherent cost advantages of Ethernet."

As competition heats up between China's regional service providers, cable operators are increasingly entering the business services market -- previously the stronghold of the incumbent telephone and data providers -- to gain market share and grow their businesses. By using MPLS-based Ethernet, these providers can also strengthen their network infrastructures to better handle the growing requirement for more dynamic bandwidth to support tomorrow's business and residential services.

"Across the country, cable operators are seeing their traditional business become commoditized as the incumbent telephone providers begin asserting their strength by moving further into the residential Internet access and video services market," said Yong Shu, General Manager, Asia Pacific Region, Riverstone Networks. "Riverstone's carrier Ethernet routers allow cable operators to successfully compete in the business services arena, moving into a world of integrated voice, video and data services to both business and residential users."

Riverstone Networks, Inc. is a leading provider of carrier-class solutions for next generation metro Ethernet networks. Riverstone's metro routers and provisioning solutions deliver the ease of use, cost effectiveness, and flexibility that carriers require in meeting their customers' networking requirements in support of voice, video, and data services. Riverstone uniquely permits carriers to offer homogeneous services across existing revenue-generating networks and new Ethernet deployments.

Except for the historical information contained herein, the matters set forth in this press release, including without limitation statements regarding Hubei CATV's ability to deploy an Ethernet-based network, charge competitively priced services, and sustain margins are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements speak only as of the date hereof and are subject to risks and uncertainties that may cause actual results to differ materially. These risks and uncertainties include the proper performance of Riverstone equipment in Hubei CATV's network and changes in the competitive landscape in which Hubei CATV operates along with those risks and uncertainties detailed from time to time in Riverstone Networks' SEC reports, including the reports on Form 10-Q and Form 8-K filed on September 2, 2004. The company assumes no obligation to update or revise these forward-looking statements.

Riverstone Contact: Agency Contact: Amy Huitt Huang Hui Riverstone Networks Ruder Finn Asia 408-878-6918 86-10-646-27321, ext 611 ahuitt@riverstonenet.comhuangh@ruderfinnasia.com

Source: Riverstone Networks, Inc.

CONTACT: Amy Huitt of Riverstone Networks, +1-408-878-6918, or ahuitt@riverstonenet.com; or Huang Hui of Ruder Finn Asia, +86-10-646-27321, ext 611, or huangh@ruderfinnasia.com, for Riverstone Networks

Web site: http://www.riverstonenet.com/

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