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Continuous Computing Expands Business Model and Announces First Fully-Integrated Family of Systems for IPTV, Security, and Wireless Core Applications

FlexTCA Offers Unprecedented Levels of Trillium Software and ATCA Hardware Integration to Alleviate Today's Network Bandwidth Challenges and Meet Time-to-Market Demands for TEMs

SAN DIEGO - October 30, 2007 - Continuous Computing, global provider of integrated systems and services that enable telecom equipment manufacturers (TEMs) to rapidly deploy Next Generation Networks (NGN), today announced the company has advanced its business strategy to deliver highly integrated systems for the telecommunications market, expanding its focus to include Tier II and Tier III TEMs. As part of the strategy, the company also introduced FlexTCA, a new product family consisting of fully-integrated systems for creating IPTV, Security, and Wireless Core solutions. The announcement marks the company's strategic shift toward delivering an unprecedented level of integration of standards-based platform ingredients that enable TEMs to significantly decrease their time-to-market while increasing program return on investment (ROI) up to 50 percent over legacy alternatives.

Changing Telecom Industry Paradigm: The Call for More Integration
The telecom market is undergoing a seismic shift in the face of rapid adoption of bandwidth-intensive applications such as IPTV, high definition, peer-to-peer networking, and mobile video. As carriers upgrade legacy systems, TEMs are becoming increasingly aware that time-to-market is the most important factor in their product delivery criteria. To meet this challenge, the telecom industry is shifting from proprietary telecom infrastructure developed in-house to TEM software applications being hosted on carrier-class platforms supplied by a small community of systems suppliers such as Continuous Computing.

"The pricing pressures of the telecom market's changing landscape are leading TEMs to the realization that in-house development does not always deliver products in the timeframe and cost required by their customers," said Lee Doyle, group vice president of IDC. "With standards-based, pre-integrated systems, such as those being introduced by Continuous Computing, TEMs are not only able to minimize design and deployment time, but also have the ability to dedicate in-house resources to functions that create differentiating value, such as application development."

Continuous Computing estimates that customers can slash product delivery cycles in half by deploying application-ready systems such as FlexTCA. The majority of TEMs currently use a combination of in-house product development coupled with integration of commercial off-the-shelf (COTS) building blocks. This approach mandates large engineering organizations to manage inventory from multiple vendors, integrate technologies from different suppliers with independent roadmaps, verify product interoperability, confirm global standards compliance, and troubleshoot the myriad issues that inevitably arise during complex platform integration. By leveraging the fully-integrated, pre-tested system benefits of FlexTCA, TEMs can create and deploy new applications while achieving up to a 50 percent increase in total program ROI over legacy systems.

"In order to reduce time-to-market and improve execution quality, we find that working with suppliers such as Continuous Computing, who are able to offer very high levels of system integration, helps us deploy network infrastructure much more quickly and with reduced risk - which lets us focus on application differentiation," said Ron Watson, director, platform development at Alcatel-Lucent. "The fully-integrated system approach also provides a single supplier who can more efficiently resolve issues, should they arise."

Delivering What the Industry Is Demanding: FlexTCA Fully-Integrated Systems
Consisting of a complete assortment of best-in-class ingredients, Continuous Computing's fully-integrated FlexTCA systems feature an innovative, tightly-integrated bundle of the following:

Whereas alternative system offerings focus primarily on hardware functionality, leaving customers with the responsibility and burden of selecting and integrating software components from multiple vendors, Continuous Computing has assembled all of the necessary system ingredients into one pre-integrated FlexTCA package. No other vendor can offer the unique value combination of Trillium software pre-integrated with a complete suite of ATCA hardware to yield a total system solution.

Murray Cooke, chief business services strategist, British Telecom Group, agrees that ATCA systems are becoming a realized need as a result of fixed-mobile convergence (FMC) and IT / communications convergence. "Having a portfolio of pre-integrated, standardized, reusable system components is a key factor in our 21C platform strategy to drive down concept-to-market timescales for new services and customized solutions."

Among other benefits, FlexTCA systems will be differentiated by a Unified Management Interface (UMI) - a single point of access for managing all the system hardware, Trillium protocols, and Service Availability Forum (SAF)-compliant middleware. The UMI provides one consistent interface to monitor, manage, maintain, and upgrade the entire system, resulting in significant time and cost savings through streamlined field operations and troubleshooting transactions.

"Continuous Computing's new product family leverages our strong expertise and tenure in Trillium software and telecom hardware architecture to deliver fully-integrated systems which exceed the value of any other alternatives currently available on the market," said Mike Dagenais, chief executive officer of Continuous Computing. "This announcement firmly positions the company as a key provider of complete system solutions for TEMs looking to reduce their time-to-market, mitigate project risk, and increase market share."

Continuous Computing's complete system solutions will be optimized for IPTV, Security, and Wireless Core applications such as IPTV aggregation, edge aggregation, 3G/4G and WiMAX wireless gateways, traffic management, quality of service (QoS), legal intercept and network security, session border controllers, IMS border gateways, call state control function and more. These high-growth application areas consist of some of the most exciting and innovative developments in the increasingly competitive telecom services arena.

The first of the FlexTCA systems will begin shipping in Q1 2008.

About Continuous Computing
Continuous Computing provides integrated systems and services that enable telecom equipment manufacturers to rapidly deploy Next Generation Networks (NGN). Over 150 customers worldwide benefit from the company's unique blend of customized professional services, Trillium protocol software, AdvancedTCA and CompactPCI systems, and BladeCenter hardware. Continuous Computing helps customers reduce platform lifecycle costs, optimize data delivery, and accelerate deployments of NGN, 3G/4G Wireless, and IP Multimedia Subsystem (IMS) infrastructure. The company is ISO-9001 and CMMI certified and based in San Diego with development centers in China and India. For more information, visit www.ccpu.com.

Continuous Computing is a member of the Intel Embedded and Communications Alliance (www.intel.com/go/ica), Communications Platforms Trade Association (www.cp-ta.org), Femto Forum (www.femtoforum.org), IMS Forum (www.imsforum.org), Service Availability Forum (www.saforum.org), and the Blade.org ecosystem (www.blade.org).

Continuous Computing, the Continuous Computing logo, Create | Deploy | Converge, FlexTCA, Flex21, FlexChassis, FlexCompute, FlexCore, FlexDSP, FlexPacket, FlexStore, FlexSwitch, FlexTCA, Network Service-Ready Platform, Quick!Start, TAPA, Trillium, Trillium+plus, and the Trillium logo are trademarks or registered trademarks of Continuous Computing Corporation. Other names and brands may be claimed as the property of others.

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