Power & Telephone Supply Company to Distribute Coaxsys’ TVNET to Telco Customers

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Coaxsys Expands Distribution to Meet Increased Demand

Coaxsys Incorporated, makers of the #1 deployed IPTV network, today announced that it has reached an agreement with Power & Telephone Supply Company to act as the first distribution partner for its TVnet network. Power & Tel will offer the IPTV 7000, currently used by more than twenty U.S. telcos, to its network of over 300 customers.

Coaxsys’ IPTV 7000, which utilizes TVnet technology, instantly transforms a home’s existing coaxial cable infrastructure into a high-speed, IPTV-ready digital entertainment network. The network enables telcos to offer IPTV to its customers without having to rewire homes with Cat-5 Ethernet cable. Its low cost and simple plug-and-play installation enable telcos to utilize preexisting wires, dramatically reduce installation time, and deploy IPTV more quickly. This not only allows them to meet customers’ demand for reliability and simplicity, but it also saves the telco a considerable amount of money on installation.

Power & Telephone Supply Company is an independent distributor of material for the Telecommunications and Cable TV industries. Headquartered in Memphis, Tennessee, Power & Tel has nine domestic and seven international offices and warehouses. Power & Tel does not manufacture or offer its own product lines; instead, its focus is on identifying and offering the best products and solutions to its customers. As a full-line stocking distributor and material management provider to the worldwide communications market, Power & Tel has been actively involved in the search for a networking solution for telcos’ IPTV deployments.

“Our customers demand the best products, and they rely on us to conduct considerable due diligence to ensure that the products we offer are reliable and functional,” said Jim Drain, VP Telephone Group for Power & Tel. “A number of our telco customers have deployed IPTV already, and countless more will be doing so in the near future. Coaxsys’ TVnet works, is reliable, is cost-effective, and has a large installed base with U.S. telcos. We are pleased to have been selected as Coaxsys’ first distribution partner, and we are excited to offer our customers the opportunity to deploy IPTV without having to rewire their customers’ homes.”

Coaxsys VP of Sales, Gregory Boe, was quick to praise his Company’s new distributor. “Over the past several months we have asked our telco customers to recommend a distributor they consider trustworthy. Without exception, they have praised Power & Tel’s commitment to quality and customer service.” Boe continued, “We are excited about the new customers to which we will be exposed, but more importantly, we are pleased to have Power & Tel represent our products. We believe that the partnership is an excellent fit that will benefit our collective customer base. Both companies hold the same high standard for customer service and excellence.”

Coaxsys’ TVnet adapters are the only available IPTV alternative to rewiring homes with Cat-5 Ethernet. Once connected to the video or broadband source, TVnet transforms the entire home’s coaxial cable into a series of network-enabled coax jacks. TVnet adapters can then be connected to any network-enabled device in order to provide Internet access, share peripherals, or stream high quality, digital audio and video (including multi-channel and HDTV).

TVnet delivers up to 104 Mbps transfer rate and supports distances up to 250 feet. TVnet is also compatible with TV splitters and supports Ethernet unicast, multicast, and broadcast.

About Coaxsys

Coaxsys, Inc., manufactures groundbreaking, high-speed networking and distribution solutions utilizing standard coaxial cable. The company’s new line of TVnet products enables telcos, cable operators, and satellite providers to deliver and distribute voice, data, and video throughout the home. TVnet transforms coax receptacles into a high performance multimedia network, creating new applications for digital communications and entertainment - without having to hardwire Cat 5 cable throughout the home. Coaxsys also licenses its TVnet technology to partners, such as set-top box and modem companies, that wish to make their products TVnet-Ready.

Established in 2002, Coaxsys is headquartered in Los Gatos, California. For more information on Coaxsys, visit http://www.coaxsys.com

About Power & Telephone Supply Company (Power & Tel):

Power & Telephone Supply Co. is a full-line stocking distributor and material management provider to the worldwide communications market. Their recognized high-level of service is traced to experienced sales, technical and warehousing staffs; a state-of-the-art inventory management and customer service system; industry established best practices such as ISO 9001:2000; and mature relationships with manufacturing partners. Serving customers since 1963, Power & Tel is headquartered in Memphis, TN and has more than 300 employees globally. The company operates over half a million square feet of distribution space worldwide and in 2004 shipped material to over 60 countries. Power & Tel's mission is to be your most cost-effective way to have the right material at the right place at the right time… every time. For more information call 877-PNT-TEAM or visit http://www.ptsupply.com.

Coaxsys:

Ted Archer

Director of Marketing

408-395-5556

tarcher@coaxsys.com

Media/analysts contact:

Joseph Kilmer

FutureWorks, Inc.

408-428-0895 Ext. 113

joe@future-works.com

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Coaxsys
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