May 23, 2005

HATTERAS NETWORKS AGGRESSIVELY EXPANDS MARKET REACH WITH LAUNCH OF WORLDWIDE CHANNEL PARTNER PROGRAM

Top system integrators and value added resellers partner with Hatteras Networks to deliver market-leading, carrier-grade 2BASE-TL Ethernet over copper platforms to market

Research Triangle Park, NC– May 23, 2005 – Hatteras Networks, the leading provider of high-bandwidth, last-mile Ethernet bonded copper access and service platforms, today announced the company's Channel Provider Program to extend its range and reach into IOC, CLEC, IXC and incumbent telecommunications carrier markets both in the U.S. and abroad. With a global network of channel partners signed to date including Goldfield Telecom, Perical Solutions, and Phillips Communications, Hatteras Networks is successfully capitalizing on the interest worldwide in standards-based, carrier-class platforms capable of delivering symmetrical, business-grade services over copper.

"Hatteras Networks provides the industry's only success-based Ethernet over copper service creation platform and that is immensely appealing to our target carrier customers," said Randy Mixon, president of Perical Solutions. "Hatteras' equipment gives us an immediate performance and technology advantage to offer both carrier and enterprise customers wishing to leverage the cost benefits and service flexibility presented by Ethernet-over-copper business services."

Hatteras Networks Channel Partner Program today spans three continents and includes active ongoing channel development in all regions. “With Hatteras Networks equipment as part of our portfolio, we can now offer our customers the ability to deploy metro-quality Ethernet services to all of their business customers,” said Darrel Seaba, president of Goldfield Telecom. “This represents a very compelling value proposition to all types of carriers from the smallest IOC to the largest incumbents.”

With Hatteras Networks Metro Ethernet Copper Access platforms, the company's Channel Provider Partners are offering a carrier-class solution designed to easily integrate into a carrier's back office systems. Hatteras Networks' solutions offer full Ethernet operations, administration and maintenance (OAM) functionality, which reduces deployment costs and enables carriers to manage new Ethernet services in the same manner as any other private line or private LAN service. Capable of delivering up to 45 Mbps of symmetrical Ethernet service over existing last-mile, voice-grade copper, Hatteras Networks' platforms give carriers the flexibility required to create a rich service portfolio that includes Ethernet private line, Transparent LAN services, Voice-over-IP, Internet Access flexibility from 1-45 Mbps, and virtual private networks (VPNs).

“Carriers are actively looking for innovative, standards-based solutions that can have an immediate and long-lasting impact on their access networks and Hatteras Networks' 2BASE-TL solution is ideally suited to meet this demand,” said Kevin Sheehan, president and CEO of Hatteras Networks. “Together with our channel partners, Hatteras Networks is reinvigorating last-mile business services with its success-based Ethernet services business model, ushering in a new class of high-performance, flexible Ethernet services to market.”

Hatteras Networks will demonstrate how carriers worldwide are deploying its awarding winning Ethernet over copper solutions at SUPERCOMM 2005 (booth #29049). Hatteras Networks will demonstrate how carriers can deliver point-to-point and multipoint 2BASE-TL bonded copper solutions, with voice, video and data over a single connection – all with unique service level agreements.

About Hatteras Networks

Hatteras Networks, a privately held company headquartered in Research Triangle Park, North Carolina, offers carrier solutions to deliver high-bandwidth business services to locations that are not served with fiber. Hatteras Networks enables carriers to fully deliver the requisite high-bandwidth, access infrastructure to support converged voice, video and data network services to business customers. Carriers can use Hatteras Networks' standards-based solutions to extend fiber-based Ethernet services over copper or upgrade private line customers to higher-performance services. Hatteras Networks' platform is built to operate in central offices (COs), controlled environmental vaults (CEVs), remote terminals (RTs) and on poles, allowing carriers to deliver Ethernet to nearly all business buildings on their copper and fiber infrastructure. For more information, visit www.hatterasnetworks.com .

Note to Editors: Hatteras Networks and Metro Ethernet Copper Access are trademarks of Hatteras Networks. All other trademarks are the property of their respective owners.

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Media Inquiries:
Richard M. Williams
Connect2 Communications
919-523-0621
rmwilliams@connect2comm.com