SOURCE: TXP Corp.

October 15, 2008 07:30 ET

US Experiences Highest Rate of Fiber-to-the-Home Growth; Doubles Connections Since 2007

TXP Positioned to Be Major Contributor to Fiber-to-the-Home Solutions

RICHARDSON, TX--(Marketwire - October 15, 2008) - TXP Corporation (OTCBB: TXPO) ("the Company"), an Original Design Manufacturer (ODM) for the telecommunications industry, today announced that the September 2008 issue of Broadband Properties Magazine included robust new industry data that identifies TXP as one of the key players uniquely positioned within one of the most rapidly growing technology sectors: Fiber-to-the-Home (FTTH).

FTTH Market Growing Fastest in US

According to the Fiber-to-the-Home Council's data published in Broadband Properties Magazine (page 10, 'First Mile'), a leading source of information on digital and broadband technologies, the United States currently ranks third in global FTTH households (3.3M), but experiences the highest rate of growth of any country in terms of new connections year over year. According to Joe Savage, President of the FTTH Council North America, fiber to the home is now the 'broadband platform of choice.' The catalyst of the FTTH Market, according to Infonetics Research, is the GPON (gigabit passive optical networking) segment. Between Q4 2007 and Q1 2008, manufacturers increased revenues, on average, by 33%. TXP, through its anticipated merger with Cambridge Industries Group, expects the combined company to be a major supplier of optical network terminals (ONTs) installed onsite at a GPON customer's house.

43% More US Household Broadband Connections Projected by 2012

According to additional published research from Gartner, Inc., broadband penetration into the US market is expected to grow from approximately 54% to 77% by 2012. The gain is attributed to aggressive deployment by Verizon's FiOS initiative, strong word of mouth consumer support, and the abandonment of antiquated dial-up connections that are still active in an estimated 10% of American homes. According to Bryan Rader of Broadband Consulting (page 8, 'Provider Prospective'), dial up connections are dropping by as much as 10-15 percent a year. TXP management believes that the success of Verizon FiOS and the highly-competitive consumer market for fiber connections will translate into an industry surge not seen since the wide adoption of DSL and cable modems. A surge that will drive a widespread change-out of customer premises equipment, from dial-up and DSL modems to PON Optical Network terminals.

Read the full issue: http://www.bbpmag.com/2008issues/aug08/BBP_AugSep08.pdf

TXP Recognized as Top 100 Company

Broadband Properties also recently added TXP Corporation to its exclusive list of the Top 100 Companies making a difference in the fiber broadband industry. The magazine's criteria for inclusion included companies that would make a key contribution to the industry in the upcoming (2009) year, as well as a determination of whether the industry would suffer if such a company did not exist. TXP was recognized for its carrier-class Optical Network Terminal (ONT) products and standards-compliant enhancements such as RF overlay and RF return capability, which allows telecommunication companies to provide television over gigabit passive optical networks (GPON). The 2008 listing was the first time TXP has been recognized by this industry publication. Other companies recognized included a wide array of current TXP partners and clients, including ADTRAN, Calix, Occam and Tellabs, as well as technology giants such as Verizon, Alcatel-Lucent, and Cisco Systems.

Broadband Properties 2008 Top 100 Issue: http://broadbandproperties.com/2008issues/july08/BBP_July08_webFinal.pdf

TXP recently agreed to merge with China-based Cambridge Industries Group (CIG), with an expected closing of year-end 2008. The CIG-TXP combination has already yielded new product wins for the partnership even prior to merger completion.

About TXP

TXP is an Original Design Manufacturer (ODM) for the telecommunications industry. Based in Richardson, Texas, TXP has three primary business units: TXP-Prototyping Solutions, TXP-ONT Solutions and TXP-Retrofit Solutions. TXP-Prototyping Solutions provides pre-manufacturing services for the electronics industry that help Original Equipment Manufacturers (OEMs) bring products to market both faster and more cost effectively. TXP-ONT Solutions develops and markets, via an ODM model, a line of Carrier-Class CPE products including home gateways and the world's broadest independent family of ONT products to both OEMs and ILECs. ONTs are used in FTTH-based services to terminate the passive optical network at the home or business location, and enable integrated voice, video and high-speed internet access. TXP-Retrofit Solutions provides custom engineered kits that enable ILECs to upgrade their local access service delivery infrastructure at minimum cost and time, enabling a wide range of next generation telecom platforms to easily fit into the variety of remote OSP cabinets that have been broadly deployed over the last 30 years. For more information visit: www.txpcorp.com

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements which are not historical facts contained in this press release are "forward-looking statements" that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, development of new products, government approval processes, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties detailed in the company's filings with the Securities and Exchange Commission which may cause actual results, performance and achievements of the company to be materially different from any future results, performance or achievements expressed or implied.

Contact Information

  • Media:
    Kevin Tanzillo
    Dux PR
    (903) 865-1078

    Investor Relations:
    David K. Waldman / Klea K. Theoharis
    Crescendo Communications
    (212) 671-1020