Xtera Communications announced today that it is providing equipment and services for a multi-million dollar upgrade to the ARCOS-1 cable of Columbus Networks, Ltd.

The current ARCOS-1 Submarine Cable System, which is 94% owned by Columbus Networks, connects twenty-four (24) terminus locations throughout the Caribbean. The company offers advanced, high-speed capacity and IP services to telecom carriers, TV cable companies, Internet Service Providers and network integrators. Columbus Networks has contracted Xtera Communications to provide optical networking equipment to bolster the capacity and functionality of the network and the company's ability to offer existing and emerging next-generation services. Xtera Communications will deploy its Nu-Wave XLS, all-Raman DWDM system, on 22 unrepeatered segments of the existing 8,600 km submarine cable connecting the United States with 19 countries in Central America and the Caribbean. Currently, the Nu-Wave XLS optical design capacity enables up to 300 Gbit/s on any given ARCOS-1 dark fiber pair. The system provides an ultimate capacity of 600 Gbit/s per fiber pair. These 22 ARCOS-1 sub-sea segments have 10 dark fiber pairs still available for future use. A mixture support of STM-16, STM-64 and native Ethernet IP transport will enable a multitude of next-generation services for information, communication and entertainment applications. Xtera will also provide engineering, test and commissioning services from its Professional Services organization.

"Xtera's all-Raman technology provides the performance we require to support the high-quality bandwidth requested by our customers. It also provides a compact, low maintenance solution with high availability, high service flexibility, low configuration complexity and optimum on-going costs," said Paul Scott, Vice-President and COO, Columbus Networks. "We continue to experience huge demands for bandwidth and advanced applications in the Pan Caribbean-Americas region. This new Xtera platform, combined with the new sub-sea extensions we are constructing, positions us to meet the needs of our customers well into the future," added Mr. Scott.

"ARCOS-1 is a strategic submarine cable for connectivity between the U.S., the Americas and the Caribbean. Xtera is proud to provide the products and services that will play a key role in the introduction of new inter- and intra-regional advanced services," said Herve Fevrier, COO, Xtera Communications.

About Columbus Networks

Columbus Networks is a wholly owned subsidiary of Bridgetown, Barbados-based Columbus International Inc. Columbus Networks is a 94% owner and principal operator of the Americas Region Caribbean Optical-ring System (ARCOS). Columbus Networks is a telecommunications service provider that offers broadband and IP capacity services to telecom carriers, TV cable companies, Internet Service Providers and network integrators. With more than 11,000 km of active undersea fiber optic network, the company's ARCOS network combined with it's new undersea link to Trinidad that was recently placed into service and its affiliate company's sub-sea networks in Bahamas (Caribbean Crossing) and Jamaica (Fibralink), positions the company as the leading undersea broadband fiber-optic cable network provider connecting the U.S., Mexico, Central America and the Caribbean.

About Xtera Communications

Xtera Communications supplies innovative optical transport solutions enabling high-bandwidth service providers to offer profitable converged broadband services. Using patented all-Raman technologies, Xtera delivers the industry's only actual Wide Reach(TM) DWDM transport solution with the headroom to deliver abundant high-quality video, data and advanced voice services. Xtera's Wide Reach solution benefits regional, long haul, ultra-long haul and unrepeatered submarine applications. Recent news releases and further information are on Xtera Communications' Web site at: http://www.xtera.com/.