Hsinchu, Taiwan, September 23, 2008-- ZyXEL Communications (TSE: 2391), a world leader in broadband access solutions, has been named Carrier Ethernet Switch tender by Chunghwa Telecom (CHT). This follows the company's similar success in February. ZyXEL has been the primary Carrier Ethernet Switch vendor to support CHT's goal providing one million subscribers on both Next Generation Access Network (NGN) and multimedia-on-demand (MOD) services for four consecutive years. "This demonstrates ZyXEL's capability of Ethernet deployment technology from access to aggregation network," Dr. Yuh-Long Chen, ZyXEL's president said.

As value-added broadband applications such as triple-play (data, voice and video) and MOD become more prevalent, CHT, the largest incumbent telecom operator in Taiwan and one of the most advanced FTTx carriers worldwide, has aggressively invested in its FTTx network and MOD service to meet the goal of one million subscribers on NGN and MOD services by the end of this year. As the primary vendor for CHT's FTTx infrastructure in the access and aggregation network, ZyXEL has built a long-term partnership with CHT based on exceptional reliability and performance.

ZyXEL Carrier Ethernet technology aims to meet the demands of CHT customers with better connection quality and speed. With no compromise on performance, ZyXEL's Carrier Ethernet Switches provide new low energy consumption and low heat dissipation designs to help CHT to extend the product lifecycle, while lowering operating costs and addressing environment concerns.

In the latest tender, CHT employed, for the first time, the most-favored-bid method in Carrier Ethernet switch procurements. During the evaluation stage, ZyXEL products were well regarded in criteria such as specifications and sample tests. "Our products stood out from the competition," Dr. Yuh-Long Chen said, "and this underscores ZyXEL's technical advantage as a trustworthy business partner."

"Being successful in CHT's Carrier Ethernet switch tenders is a boost to ZyXEL's competitive advantage in Telco markets," Dr. Yuh-Long Chen, ZyXEL's president, said. "Our long-lasting development efforts and investment in Carrier Ethernet technology are now bearing fruit. Through recent sales achievements, we are confident that ZyXEL has demonstrated its capability as a viable player on the carrier network market."

About ZyXEL's Carrier Ethernet
ZyXEL Carrier Ethernet switches, including the MES/MGS series, are designed to give Telco operators a flexible and cost effective solution in metro networks.
As a member of the Metro Ethernet Forum (MEF), we believe that with the guarantee of MEF, the carrier class QoS, scalability, reliability and exclusive service management design of ZyXEL Carrier Ethernet products will help our customers deliver more differentiated Carrier Ethernet services.

About ZyXEL Communications
ZyXEL Communications Corp., founded in 1989 and headquartered in Taiwan, is the leading provider of complete broadband access solutions for service providers, and business and home users. The company was recently named Taiwan's first "green enterprise," and is the second highest ranked "green" company in Asia (2007 CG watch, Asian Corporate Governance Association).

As one of the early modem manufacturers, ZyXEL has undergone many transformations in the fast-paced networking industry. Today, ZyXEL is one of the few companies in the world capable of offering complete networking solutions including DSL customer premise equipment, central office equipment, Internet security appliances, switches, WLAN equipment, network-attached storage and centralized network management systems.

The company has 3200 employees and distributors in 70 countries, reaching more than 150 regional markets. The ZyXEL Communications Corp. includes 29 subsidiaries and sales offices and three research and development centers worldwide. For more information, visit the company's Website, http://www.zyxel.com.