SaskTel Expands 2Wire Alliance, Standardizing on 2Wire HomePortal® Residential Gateways

San Jose, California - July 24, 2006 - SaskTel and 2Wire, a provider of broadband service delivery platforms, have expanded their previously-announced alliance to deliver home networking to SaskTel’s high-speed Internet and MAX subscribers. Under the terms of the newly-expanded alliance, 2Wire will be the exclusive provider of broadband connectivity and home networking equipment to all new SaskTel broadband subscribers.

“Through our Next Generation Access Infrastructure deployment, we will be offering subscribers much greater bandwidth, enabling next generation services such as high definition video and digital telephony over the Internet,” Kym Wittal, SaskTel Chief Technology Officer, said. “2Wire, with its premium home networking technology and experience supporting IPTV and VoIP deployments, is the ideal partner to help us bring these new services to market.”

SaskTel currently offers 2Wire’s ADSL residential gateways to its HomeNet service customers. Under the terms of the expanded alliance, SaskTel will also provide new subscribers with 2Wire’s ADSL2+ residential gateways, which enable even faster broadband speeds, for next generation, bandwidth-intensive services.

“SaskTel has firmly established itself as a visionary broadband pioneer,” said Pasquale Romano, vice president and general manager of 2Wire’s gateway business unit. “We are honored to be working so closely with SaskTel during this pivotal time, as they build out their network and continue providing subscribers with the most advanced broadband services available today.”

SaskTel will continue using CMS, 2Wire’s CPE management system, to manage its service offerings and minimize customer support costs. CMS has been integrated with SaskTel’s existing provisioning and customer management systems to deliver remote diagnostics, preemptive troubleshooting, and automated upgrades. CMS also lays the foundation for next generation digital homes by providing Quality of Service and device interoperability.

Over the next five years, SaskTel’s Next Generation Access Infrastructure (NGAI) will enable SaskTel to offer increased bandwidth by providing fiber optic cable closer to customer homes. NGAI will result in improved service to Internet and Max customers and the addition of next generation services such as VoIP and HDTV. SaskTel will make a capital investment of $136.5 million in NGAI in 2006 and over $310 million through 2010.

About SaskTel
SaskTel is the leading full service communications company in Saskatchewan, offering complete wireline, wireless, Internet and e-business solutions over a state-of-the-art, digital network. SaskTel maintains investments in companies that provide a variety of products and services. Visit SaskTel at www.sasktel.com.

About 2Wire
2Wire provides global telecom carriers with broadband services platforms that enable an integrated triple play of networked data, voice, and media services. 2Wire’s award-winning products and services include residential gateways, broadband multimedia set top boxes, remote management systems, and call center customer support. 2Wire’s customers include global DSL market leaders AT&T, TELMEX, BellSouth, BT, Embarq, SingTel, and others. For more information, visit www.2Wire.com.

2Wire and HomePortal are registered trademarks of 2Wire, Inc. in the United States and in other jurisdictions throughout the world. All other company and product names may be trade names or trademarks of their respective owners.