Occam Networks Adds Three New Iowa IOCs to its Growing Customer List

Santa Barbara, CA: July 20, 2005. Occam ® Networks Inc. (OTCBB: OCCM), a supplier of innovative Ethernet- and IP-based loop carrier equipment to telecommunications companies worldwide, today announced it has added three new independent operating companies (IOCs) to its growing list of customers. The Iowa-based IOCs include Long Lines, Partner Communications Cooperative and Western Iowa Telephone.

"As we continue to add new customers it is clear that our vision of an Ethernet- and IP-based access network is quickly becoming a reality," said Russ Sharer, vice president of marketing and sales for Occam. "These new customers are deploying cutting edge access networks that use a softswitch architecture, such as that provided by MetaSwitch, rather than a traditional TDM architecture. They are sold on the flexibility, cost-effectiveness and scalability that only Ethernet and IP provide."

Gilman, Iowa-based Partner Communications Cooperative worked with Goldfield Telecom, an IP equipment supplier based in Iowa, to select and install the Occam BLC 6000 System. Partner has plans to deploy the BLC in two COs and in four remotes. Partner has completed the first phase turning up the BLC to deliver POTS and ADSL2Plus services to subscribers in the Gilman and Kellogg, Iowa, exchanges. The cooperative plans to incorporate the BLC with its MetaSwitch VP3510 Series Class 4/5 Softswitch along with its Lucent 5ESS VCDX traditional switch. Using the BLC, the IOC has also built a redundant fiber ring between Gilman, Kellogg and State Center, Iowa running H.248.

"We wanted the latest technology to upgrade our access network, but we wanted a supplier with experience in delivering that technology," said Don Jennings, executive vice president at Partner Communications Cooperative. "Occam had deployed more Gigabit Ethernet backbones and had more in service than any of the other manufacturers we considered. Other manufacturers could only promise what Occam is already delivering."

Partner has recently purchased four new exchanges, effectively doubling the number of its access lines to 4,000. In these new exchanges, it will add the BLC 6000 as a COT along with an additional MetaSwitch. Partner expects that all the systems will be deployed by Q1 2006. As Partner upgrades subscribers in its current CSA with Occam equipment, it will take its current DLC cards and deploy them in rural areas, enabling the company to leverage its existing infrastructure to reinforce its rural market.

"Occam's experience with Gigabit Ethernet and IP was invaluable during installation and turn up," said Jennings. "The Goldfield technicians were able to install it easily and turning up new services goes very smoothly. We are very impressed with the features and capacity of the BLC 6000."

Long Lines is using the BLC 6000™ System to deliver POTS and high-bandwidth services such as DSL over its existing copper lines. The Sergeant Bluff, Iowa-based IOC has the Occam BLC 6000 deployed in its Central Office (CO) as a central office terminal (COT) and in five remote cabinets. Long Lines has been delivering service from one of the five remote sites for more than six months. The carrier plans to install Occam BLCs in additional remotes over the next few years as it overbuilds the existing copper infrastructure in neighboring towns it serves as a competitive local exchange carrier (CLEC).

"The market is moving to Ethernet and IP technologies, especially for the delivery of Triple Play services," said Troy Sands, Central Office Supervisor at Long Lines. "We selected the company with the most experience in delivering those technologies and stayed away from the companies who had those technologies on their product road map somewhere in the future."

"Additionally, we liked the fact that the Occam BLC has everything on a single platform, even the splitters, which means less clutter in the CO and less administration," Sands continued. "This high level of integration saves us a lot of time and money. Once we have turned up service for a subscriber, we can turn them over to a customer service representative who is then able to add new services as the subscriber requests them. We can deliver a POTS line the same day it's ordered."

Western Iowa Telephone is in the process of replacing its current digital loop carriers with the Occam BLC 6000 System and has deployed the BLC 6000 in its CO and seven remotes to date. Before selecting the Occam BLC, the IOC had transitioned its TDM architecture to a softswitch-based network. Currently Western Iowa uses IP to transport traffic from its remote cabinets to its MetaSwitch VP3500 Series Class 5 Softswitch.

"One of our key reasons for choosing Occam was the strength of its relationship with MetaSwitch," said Heath Mallory, general manager at Western Iowa Telephone. "That relationship has paid off for us because the Occam support team frequently handles any interaction with the MetaSwitch support team, which saves us valuable time."

"We also liked the flexibility of the Occam BLC," Mallory continued. "The ability to deliver any service from a single piece of equipment and to handle different fiber rings gives us a variety of options in upgrading our access network. That's very important to us as we look at delivering new services like voice over IP (VoIP) and IP video."

Western Iowa has been delivering POTS and DSL services via the BLC 6000 to residential and business subscribers in its 650 square mile customer service area for several months.

About Long Lines

Founded in 1941, Long Lines is a leader in the telecommunications industry, using high-speed fiber optic networks to deliver local and long distance telephone, high-speed Internet, cable TV and other services to residential and business subscribers in more than 80 communities in Iowa, Nebraska and South Dakota. The company's headquarters are located in Sergeant Bluff, Iowa. Additional information can be found at www.longlines.com.

About Partner Communications Cooperative

Founded in 1958, Partner Communications Cooperative is a full service communications company providing high-quality, advanced telecommunications services at competitive prices to the subscribers of Central Iowa. With approximately 4,000 access lines, the company provides local telephone and long distance services, high-speed Internet access and digital cable TV to the citizens of Baxter, Gilman, Kellogg, Melbourne, Rhodes and State Center, Iowa. Partner Communications is headquartered in Gilman, Iowa with a branch office located in Kellogg, Iowa. Additional information can be found at www.pcctel.net.

About Western Iowa Telephone

Western Iowa Telephone is a member-owned cooperative providing telecommunication services to 11 rural communities in northwest Iowa from eight digitally-switched exchanges. The cooperative provides local and long distance telephone service to the exchanges of Moville, Lawton, Bronson, Climbing Hill, Hornick, Holly Springs, Castana, Oto, Smithland, Rodney and Turin. Western Iowa Telephone also provides Internet service to these communities, as well as Anthon and Onawa. The cooperative provides its members with state-of-the-art technology and the most advanced services at cost-effective rates. Western Iowa Telephone is located in Lawton, Iowa. Additional information can be found at www.wiatel.com.

About Occam Networks Inc.

Occam Networks Inc. develops and markets innovative Broadband Loop Carrier networking equipment that enables telephone companies to deliver voice, data and video services. Based on Ethernet and Internet Protocol (IP) technologies, Occam's equipment allows telecommunications service providers to profitably deliver traditional phone services, as well as advanced voice-over-IP, residential and business broadband, and digital television services through a single, all-packet access network. Occam is headquartered in Santa Barbara, Calif. Additional information can be found at www.occamnetworks.com.

Information relating to forward-looking statements

Portions of this press release may contain forward-looking statements regarding future events or the future performance of Occam Networks. Forward-looking statements involve risks and uncertainties, which could cause actual results to differ materially from any future performance suggested in such statements. Rapidly changing technologies and market conditions may require changes to Occam's products. Occam does not undertake any obligation to publicly update any forward-looking statements as a result of new information, future events or otherwise. Please also refer to the company's most recent quarterly report on Form 10-Q, annual report on Form 10-K and other filings with the SEC. These filings contain and identify other important factors that could cause actual results to differ materially from those contained in any forward-looking statements.