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Hanover, Germany, March 14, 2005 - Actelis Networks® Inc., a worldwide leader delivering broadband over copper solutions that enable profitable, carrier-grade broadband services over local-loop copper, today announced that BITel GmbH in partnership with Quante Netzwerke GmbH has deployed its MetaLIGHT® Ethernet-over-Copper platforms. This deployment allows BITel to significantly expand its market by offering high-quality, high-bandwidth and cost-effective Ethernet services to businesses throughout the city of Bielefeld, Germany using Actelis Networks MetaLIGHT Ethernet-over-Copper platforms.

Actelis' Ethernet-over-Copper platforms allow BITel to meet a rapidly growing demand for Ethernet services. With Actelis' platforms, BITel now delivers economical, symmetrical Ethernet (10Mbps and higher ) services using unbundled local loops leased from Deutsche Telecom. Once a customer is secured, Actelis' platforms can be deployed within a day, allowing BITel to immediately begin generating revenue.

"The Actelis MetaLIGHT platform is ideal because of how quickly and economically it allows us to eliminate barriers to delivering high-bandwidth Ethernet services to a wide variety of customers," said Alfred Kerscher, chief executive officer of BITel. "Since the MetaLIGHT platform uses copper pairs available to us through Deutsche Telecom to deliver services, we have everything we need already in place to deliver high-bandwidth Ethernet services. This allows us to expand our service offerings and gain new customers, while keeping our equipment and operating costs to a minimum."

In a recent deployment, BITel chose the MetaLIGHT platform to accelerate the link between a branch office and its headquarters. By using the new Ethernet service from BITel, the customer has reduced its monthly recurring telecommunications service costs, reduced network management time, and now has high-quality bandwidth to run applications such as high-speed internet access, voice and video over IP, among others. The MetaLIGHT platform has enabled BITel to provide a service package that can be customized to the customer including guaranteed, high-quality bandwidth and provides the scalability necessary to increase the bandwidth to the customer in the future.

"Actelis' standards-based Ethernet turn voice-grade copper pairs into a fiber-quality transport link," said Manfred Brandt, chief executive officer of Quante. "The MetaLIGHT platforms provide practical, high-performance solutions that offer ultra fast return on investment, same day deployment, and trouble-free installation. We can offer our customers economical Ethernet services with quality and bandwidth performance on par with fibre ."

"Actelis enables service providers like BITel and system integrators like Quante to capitalize on a wide variety of markets that are outside of the coverage of fibre. With our technology, they can offer high-quality broadband services to quickly and cost-effectively create new revenue streams by leveraging existing copper infrastructures. Even customers with existing fibre networks can use the Actelis solution to extend high-quality broadband to those users who are outside of the reach of the fibre network and can only be accessed by copper," said George Lasry, general manager EMEA for Actelis Networks. "We are excited that BITel is realizing the benefits of Actelis' MetaLIGHT platforms and we are looking forward to a long and prosperous relationship with BITel and Quante."

Actelis' award-winning product portfolio enables system integrators, service providers, and private network operators to use the existing copper infrastructure to provide premium long-reach voice, video and data services quickly and universally. Available in point-to-point or point-to-multipoint configurations, Actelis' MetaLIGHT Ethernet-over-Copper platforms deliver up to 70 Mbps of high-quality Ethernet services to customers or locations over the existing copper plant. Designed to comply with the IEEE 802.3ah Ethernet in the First Mile (EFM) standard, and powered by Actelis' patented MetaLOOP® technology, the Actelis' platforms to provide far better rate, reach and reliability than other Ethernet-over-Copper solutions. With the ability to provide high-quality bandwidth to distances beyond 6km, Actelis' platforms are ideal to support a wide range of broadband applications including transparent LAN services, LAN interconnection, and voice and video over IP.

About BITel GmbH

BITel is an independent telecommunications carrier that supplies telephone services, broadband, and data communications. Efficient communication strategies are the cornerstone of BITel. They offer broadband solutions including XDSL, ISDN, and Metro Ethernet services. Telephone and Internet service have an unbeatable price performance ratio and they offer custom-fit solutions for consumers and businesses alike. BITel guarantees quality with 24-hour local support.

BITel was founded in 1997 as a subsidiary of Bielefeld public utilities and in 2002 combined with Gtelnet a subsidiary of Guetersloh public utilities to form the BITel Telecommunications Society Ltd. After the merger, the company moved its headquarters from Bielefeld to Guetersloh. For more information, please visit the corporate Web site at www.bitel.de/de.

About Quante Netzwerke GmbH

Quante is located in Hannover, Germany. It is a subsidiary of Quante AG and firmly integrated in the 3M Group, which is represented in more than 70 countries. With the growth of broadband requirements and the inevitable proliferation of networks with new technologies demand increases for Quante's products and services as a provider for international telecommunications operators. For more information, please visit the corporate Web site at www.quante-netzwerke.de.