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Press Release -- June 15th, 2011
Source: Calix Networks
Tags: Equipment, Ethernet

WK&T Selects Calix for Largest Wireline BIP Broadband Stimulus Project

Calix exceeds $1 billion in aggregate project value for Broadband Stimulus awards

PETALUMA, CA—June 15, 2011—Calix, Inc. (NYSE:CALX, news, filings) today announced that Broadband Stimulus award winner West Kentucky and Tennessee Telecommunications Cooperative (WK&T) has selected the Calix B6 Ethernet Service Access Nodes (ESANs) and the 700GE family of optical network terminals (ONTs) for its Fiber Forward initiative across western Kentucky and Tennessee. The ambitious WK&T project will provide this rural region with an advanced broadband infrastructure capable of delivering service speeds of up to one gigabit per second (Gbps) to its subscribers. Upon completion, this deployment will be one of the nation's largest Active Ethernet deployments, bringing advanced IPTV services, extremely fast data services, and high-quality voice services to 21,000 homes and 99 critical community institutions such as schools, libraries and public buildings across a nine-county service area. The aggregate value of the award is $124 million, making it one of the largest "last mile" Broadband Stimulus awards and the largest single award focused on wireline services. WK&T's award consists of a $62 million grant and a $62 million loan to be used for plant engineering, materials, labor, and other costs, including access equipment. With today's announcement, aggregate Calix vendor selections by Broadband Stimulus winners for "last mile" and "middle middle mile" awards have now reached fifty five different projects representing over $1 billion in Stimulus-related grants, loans, and private investment, of which access equipment is a portion.

"Our rural region and its subscribers will now enjoy the benefits of a world class fiber network infrastructure," said Trevor Bonnstetter, CEO of WK&T. "We are looking at this project as a strategic investment in the future of our communities, stimulating economic development and providing the residents and businesses in our service area the foundation for long-term economic growth. The combination of Calix's broad residential and business ONT portfolio, our existing investment in the B6 ESANs, and comprehensive network management via the Calix Management System (CMS) provides us with an ideal solution, and gives us confidence that we will be delivering new opportunity to the deserving subscribers of our region."

WK&T will deploy the B6 ESANs with Calix's industry-leading ONT portfolio, including the Calix 716GE and 760GX families of ONTs, to deliver affordable, reliable and extremely fast broadband access across its targeted service area. The project is estimated to create 160 new jobs in the region over the next three years, and significant anticipated long-term economic stimulus.

"We would like to congratulate WK&T, and the rural residents of west Kentucky and west Tennessee, for their Stimulus award and the enormous opportunity that this powerful network will provide," said John Colvin, vice president of field operations at Calix. "By putting in place one of the nation's most advanced communications infrastructures, WK&T will lay the foundation for future prosperity by encouraging broader broadband use among residents, and putting the region on the map as an area wired for the global communications requirements of tomorrow. It is an honor to have been chosen to support and enable this important initiative, and we look forward to working closely with WK&T to make this ambitious project a success."

"Projects like WK&T's are proving to be transformative to the regions that they serve," said Carl Russo, president and CEO of Calix. "The Broadband Stimulus program is not only providing new economic opportunities and improving the quality of life in the 'unserved' and 'underserved' communities it targets, but it is playing a major role in the strategic imperative of improving our country's global competitiveness. Calix is honored to be a key enabler of this program, having to date been chosen as the access solutions partner to in aggregate over $1 billion in Broadband Stimulus project awards which will bring advanced broadband infrastructure to nearly 2.3 million homes, businesses, and community institutions."

About Calix

Calix (NYSE: CALX) is a global leader in access innovation. Its Unified Access portfolio of broadband communications access systems and software enable communications service providers worldwide to be the broadband provider of choice to their subscribers. For more information, visit the Calix website at www.calix.com.

This press release may contain forward-looking statements that are based upon management's current expectations and are inherently uncertain. Forward-looking statements are based upon information available to us as of the date of this release and we assume no obligation to revise or update any such forward-looking statement to reflect any event or circumstance after the date of this release, except as required by law. Actual results and the timing of events could differ materially from current expectations, based on risks and uncertainties affecting the Company's business. The reader is cautioned not to unduly rely on the forward-looking statements contained in this press release. Additional information on potential factors that could affect Calix's results and other risks and uncertainties are detailed in its report on Form 10-Q for the fiscal quarter ended March 26, 2011, filed with the SEC on April 29, 2011, available at http://www.sec.gov.

Press Inquiries:
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415-992-4400
calix@lewispr.com

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