ZYXEL HARNESSES THE POWER OF HOMEPLUG AV TECHNOLOGY

New PowerLine Ethernet Adapters Offer 200 Mbps Data Rate Ideal for

Anaheim, Calif., October 17, 2006 Furthering the advancement of the digital living room and enabling families to share multi-media entertainment in the home, ZyXEL Communications Inc. today announced its HomePlug AV product line featuring the PLA-400, HomePlug AV PowerLine Ethernet adapter, and the PLA-402, HomePlug AV PowerLine and coaxial Ethernet adapter. Designed as a home network backbone solution, both adapters feature very high throughput at 200 Mbps, which is ideal for IPTV deployment, video and audio streaming, VoIP services, file sharing and Internet access throughout the home. ZyXEL is the first to offer PowerLine adapters that connect either through home electrical outlets or coaxial cable.

According to Multimedia Research Group, Inc., the number of global IPTV subscribers will grow from 3.7 million subscribers in 2005 to 36.9 million in 2009. As the popularity of both IPTV and VoIP continues to grow, service providers require a home networking solution that can support these technologies without new wiring or extensive installation and deployment issues. HomePlug AV technology, with its fast data rate and ease-of-use, is the ideal solution for the advancement of home networks to support the next generation of digital home technologies.

"HomePlug AV solutions are the bridge to enhanced services like IPTV and streaming media and also offer an extension to existing Wi-Fi deployments in a home network or MTU environment," said Munira Brooks, vice president of sales, marketing and business development at ZyXEL. "Prior to HomePlug AV technology, Wi-Fi was the solution of choice for home networking. However, Wi-Fi's shortcomings, including dead spots and complicated setup, are driving service providers and consumers to PowerLine solutions, which offer fast throughput and simple Plug-n-Play setup."

Both the PLA-400 and PLA-402 HomePlug AV adapters offer up to 16 separate connections within one household and are compatible with regular 10/100 Ethernet connections. Both products are compatible with any two or three pronged wall outlet. In addition to a PowerLine connection, the PLA-402 also offers a coaxial cable connection, allowing service providers and consumers to customize installations. Both adapters offer stable and consistent data speeds because the adapters transfer data through existing wiring in the home, so there is no interference from other radio-based devices like microwaves, baby monitors and cordless phones. Both products support QoS for smooth, hi-definition video streaming and provide a secure network with 128-bit AES data encryption. The PLA-400 and PLA-402 are easy to install with no drivers, making them plug-and-play solutions with a desktop design that does not occupy the entire electrical outlet.

Pricing and Availability
MSRP for the PLA-400 is $94.00 and will be available in November. The PLA-402 will be available in December with an MSRP of $114.00. ZyXEL's HomePlug AV product line is available through ZyXEL's approved channel partners and Retail/E-tail outlets. For more information about ZyXEL's HomePlug AV products and their full product line, please call 1-800-255-4101.

About ZyXEL Communications
ZyXEL Communications, Inc., with U.S. headquarters in Anaheim, California, is one of the foremost suppliers of broadband networking and Internet connectivity/routing products. ZyXEL addresses the needs of security conscious computer users including home users, small office/home office (SOHO) and small-to-medium sized business (SMB) users. The company offers consumer-friendly products in the areas of security, wireless, VoIP, switches, and routers. The ZyXEL family of wireless home networking products are noted for their easy installation, high performance and built-in security. For more information on ZyXEL Communications and its broadband solutions, visit the company's website at http://www.us.zyxel.com.