Palau Telecoms Selects Xtera for the Turnkey Supply of the Submarine Cable

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KOROR, PALAU and DALLAS, TX -- (Marketwired) -- 01/20/14 -- Palau Telecoms, a supplier of wireless broadband internet services, has signed a Letter of Intent (LOI) with Xtera Communications, Inc. for the turnkey supply and installation of the submarine cable system that will connect Palau to Guam.

This agreement is a key milestone for Palau Telecoms' strategy. Under the terms of the agreement, Xtera will design and install the Palau Telecoms system using their innovative subsea optical plant and submarine line terminal equipment. The system will provide high capacity fiber optic connectivity to Guam, enabling connectivity to the US Mainland, the Asia Pacific region, Australia and New Zealand via interconnects with existing and planned submarine cable systems.

The objective of the investment in this optical communication infrastructure is to supplement the satellite infrastructure that currently serves Palau. Switching from satellite to optical infrastructure will increase the capacity, enhance the availability and reduce the latency of the network, improving the quality and stability of services. Also, the new optical transmission infrastructure will make it possible to offer fixed-line and wireless data services to consumers in the region at more competitive prices.

Palau Telecoms is currently in discussions with the Government of Palau to invite the State of Yap, Federated States of Micronesia to consider connecting into this project.

The Palau Telecoms cable system is planned for completion in mid-2015.

"We are very confident in our choice of supplier. Xtera brings together a unique combination of latest, proven technologies and services into a cost effective turnkey solution," said Alan Seid, Executive Vice President of Palau Telecoms. "The Palau Telecoms system will be our country's first optical submarine cable system. This new subsea link will deliver faster, more efficient and cost-effective broadband Internet connectivity to our nation, while removing the current dependence on satellite and strengthening Palau's competitive position as a business hub and tourist destination."

"Xtera is very excited to be part of the fight against the digital divide in this part of the world. We are equally pleased to have been awarded this strategic system for the emerging markets of the Pacific Islands," said Jon Hopper, CEO of Xtera. "Following recent turnkey successes in Caribbean and Pacific, this new turnkey project award is further evidence of the confidence network operators place in Xtera's capabilities to design and deploy new optical transmission infrastructure."

Both Palau Telecoms and Xtera will be present at the PTC'14 event (19-22 January 2014 -- Honolulu, Hawaii, USA); those attending are invited to approach us to learn more about this new subsea cable system.

About Palau Telecoms Palau Telecoms is headquartered in Koror, Palau and provides wireless broadband internet services to its residential and business customers on the island.

For more information on Palau Telecoms, please visit www.palautelecoms.com or contact:

Alan Seid - Executive Vice President Email: AlanSeid@gmail.com

About Xtera Communications, Inc. Xtera is a telecommunication infrastructure company focused on supplying high-capacity terrestrial and submarine optical backbones. Xtera offers turnkey optical networking solutions that deliver maximum capacity, reach, and value for network and data center operators worldwide. Xtera helps its customers expand and accelerate their market reach with new deployments and extend the life of existing network assets with cost-effective upgrades. Xtera's portfolio encompasses optical layer equipment and the associated network management software suite, as well as the services to deploy and manage optical networks.

For more information, visit www.xtera.com, contact info@xtera.com or connect via LinkedIn, Twitter, Facebook and YouTube or contact:

Bertrand Clesca - Head of Global Marketing Email: bertrand.clesca@xtera.com

Alan Seid Executive Vice President Email: AlanSeid@gmail.com Bertrand Clesca Head of Global Marketing Email: bertrand.clesca@xtera.com