EXFO Electro-Optical Engineering Inc.
NASDAQ : EXFO
TSX : EXF

EXFO Electro-Optical Engineering Inc.

January 08, 2007 09:01 ET

EXFO Receives Growth Strategy Leadership Award for xDSL Test Market

QUEBEC CITY, CANADA--(CCNMatthews - Jan. 8, 2007) - EXFO Electro-Optical Engineering Inc. (TSX:EXF)(NASDAQ:EXFO) announced today that it has been named recipient of the 2006 Growth Strategy Leadership Award for the digital subscriber line (xDSL) test equipment market by Frost & Sullivan.

The award is presented annually to the company whose growth strategy delivers the largest market-share gains in the global xDSL test equipment market.

EXFO, a leading supplier of optical and protocol test solutions for network service providers (NSPs) and system vendors, entered the xDSL test equipment market through the acquisition of the assets of Consultronics in January 2006.

Consultronics was a privately held company based in Toronto, Canada, with operations in the United Kingdom and Hungary. It specialized in xDSL, Internet protocol TV (IPTV) and voice-over-Internet protocol (VoIP) test solutions for the broadband access market. Consultronics also offered network monitoring probes for VoIP and legacy telephone networks, Gigabit Ethernet/Ethernet analyzers for remote testing applications, as well physical characterization instruments for local copper loops.

Frost & Sullivan, a leading global growth consulting company, estimated that the global xDSL test equipment market reached $395.3 million in 2005, including $68.0 million for the handheld xDSL test equipment market segment.

Consultronics held a 4.2% market share of the overall xDSL test equipment market and 13.1% market share of the handheld xDSL market segment in 2005, according to Frost & Sullivan. The handheld market segment is expected to grow at a compound annual growth rate (CAGR) of 14.2% from 2005 to 2012.

"EXFO's early success in the xDSL test equipment market is the result of its timely and strategic acquisition of Consultronics," said Gabriel Khon, a telecom research analyst at Frost & Sullivan. "But the company has gone beyond meeting physical-layer xDSL/copper testing needs of NSPs through the development of higher-layer test capabilities, namely IPTV, VoIP and high-speed Internet test solutions, that will be in large demand for characterizing triple-play services over broadband access networks in upcoming years."

Less than six months after the acquisition, EXFO released a new-and-improved xDSL triple-play test set (CoLT-450P) and enhanced VoIP/xDSL/POTS test set (CoVALT) for copper-based broadband access networks.

The CoLT-450P is the first xDSL test set to be specifically designed for assessing the high bit-rate throughput of multiple-channel, high-definition television (HDTV). The CoVALT is the lone test set on the market that combines the familiar ergonomics, ruggedness and weather-proofing of a telephone lineman's butt set with the tests needed to turn up DSL and VoIP subscribers.

These value-added test solutions enable EXFO to provide customers with a comprehensive product portfolio for all their triple-play testing needs.

"With large-scale deployments of IPTV services just around the corner and the strong focus by NSPs to accelerate their triple-play deployment strategies, the Consultronics acquisition has strategically positioned EXFO to address this significant market opportunity as well as other IP-based testing needs in access networks," said Robert Fitts, EXFO's Vice-President of Product Management, Copper Access Testing. "EXFO is committed to bring to market best-of-class test solutions for IPTV, triple-play deployments and access networks. Look for feature-rich products from EXFO in the near future that will strengthen our position in this market."

About EXFO

EXFO is a recognized test and measurement expert in the global telecommunications industry. The Telecom Division, which represents the majority of the company's business, offers a full suite of test solutions and monitoring systems to network service providers, cable TV operators, telecom system vendors and component manufacturers in approximately 70 countries. EXFO is the global market leader for portable optical test solutions and a leading supplier of protocol and access test solutions to enable triple-play deployments and converged IP networking. Its PC/Windows-based FTB-200, FTB-400 and IQS-500 test platforms host a wide range of modular test solutions across optical, physical, data and network layers, while maximizing technology reuse across several market segments. The Life Sciences and Industrial Division, which leverages several core telecom technologies, offers value-added solutions in the life sciences and high-precision assembly sectors based on advanced spot-curing, fluorescence microscopy and nanopositioning solutions. For more information about EXFO, visit www.EXFO.com.

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