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Press Release

Ceterus Networks Names New President and CEO: Industry Veteran David Stehlin to Lead Company in Revolutionizing Metro Ethernet Market

Allen, TX, January 14, 2004

Stehlin brings two decades of experience building telecom equipment companies to Ceterus; he will lead the company from its development and lab certifications phase into large-scale deployments with service providers

Ceterus Networks Inc., a provider of a unique "single virtual pipe" for transport of Metro Ethernet services, today announced that 20-year telecom industry veteran David Stehlin will join the company as President and Chief Executive Officer. Stehlin will be responsible for overall business leadership and strategic development for Ceterus as the company moves into a new stage of growth and begins commercial deployments for major carriers. Ceterus Networks' founder, current President and CEO, William Szeto, will assume the title of Chief Technology Officer and will continue to lead the company's product development efforts.

"With his vast experience in growing revenue and profits, Dave is the perfect choice to lead Ceterus forward as we move our Universal Transport System from trials into full-scale commercial market delivery," said Szeto. "Dave will guide Ceterus' unique Metro Ethernet solution " which enables service providers to deliver Ethernet services across existing infrastructure, both copper and fiber, via a single virtual pipe " to new markets and new customers."

"As Ceterus is now into its growth phase, Dave Stehlin brings the right combination of market knowledge and leadership to help the company become a preeminent supplier to the carrier market," adds Roland Van der Meer of ComVentures.

"I have worked on many technologies in my 20 years in telecom, and Ceterus Networks has the right solution at the right time for the metro Ethernet market," said Stehlin. "Enterprises are clamoring for more bandwidth and the Ceterus Universal Transport System fills their need perfectly. We have received high marks from multiple service providers as we wrap up testing in their labs. I'm looking forward to quickly expanding the customer base and bringing service providers a truly cost-effective way to deliver carrier-grade Metro Ethernet services."

In Stehlin's 20-year career in telecommunications, he has built businesses through bringing multiple product ideas from concept to commercial market, and has secured long-term contracts with many large carriers in North America and around the world. Stehlin has served as president and CEO of several telecom start-ups and run divisions of public companies including OnePath Networks, a developer of leading-edge fiber optic access systems for major communications service providers such as RBOCs, cable MSOs and CLECS; Valo, a developer of new access systems for major North American carriers; and Antec's (now Arris Group) Keptel Division, a provider of interconnection and passive communications products to cable MSOs and telcos worldwide.

Ceterus Networks Inc. 402 W Bethany Dr. Allen, Texas 75013 (469) 519-1100 Stehlin was active in the early leadership of the Ethernet-based protocol for Fiber to the Premises (FTTP) and holds a U.S. patent for an innovative broadband network interface device. He holds a B.S. from the U.S. Naval Academy, an M.B.A. from National University and attained the rank of Major in the U.S. Marine Corps.

About Ceterus Networks

Ceterus Networks provides flexible transport solutions that enable Ethernet as well as legacy service delivery to any location, over copper or fiber. By transforming existing wireline and wireless networks to carry flexible packet-based Ethernet as well as TDM services, Ceterus products enable providers and enterprises to deliver these high-bandwidth, high-QoS managed services to every location, while minimizing access cost and capital expense. Ceterus Networks is a privately-held company founded in 2001 and headquartered in Allen, Texas. For more information, visit the company's web site at www.ceterus.com.

Contacts:

Tony Katsulos
Jetstream PR for Ceterus Networks
972.788.9456, ext. 301
katsulos@jetstreampr.com

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