Riverstone Wins World's Largest Metro Ethernet Network Deployment — Korea's PowerComm to Deploy Over 1,000 Riverstone Routers

Business Wire, Jan 7, 2002

Business Editors/High-Tech Writers

SANTA CLARA, Calif.--(BUSINESS WIRE)--Jan. 7, 2002

Riverstone Networks, Inc. (Nasdaq:RSTN) today announced that PowerComm Corp., a subsidiary of KEPCO, Korea's National Electric Power Corp., will become the first national telecommunications carrier to deploy an all-Ethernet metropolitan area network. PowerComm will deploy over 1,000 advanced Riverstone service-creation routers in the greater Seoul area to create the world's largest metro Ethernet network. PowerComm's next-generation network will unify its cable and last-mile Ethernet sub-networks, allowing the national carrier to offer its own advanced telecommunications services while leasing the network to other service providers in Seoul and neighboring communities.

"Given Riverstone's successful track record deploying and supporting metro networks with major carriers throughout Asia and the rest of the world, we are convinced that our new next-generation network will enable us to successfully deliver and meet the stringent demands of our customers," said Jin-Seob Kim, access network director, PowerComm. "Riverstone quickly emerged as one of a few vendors capable of supporting a deployment of this scale. Riverstone's technology will also save considerable costs by allowing us to leverage our existing fiber infrastructure."

"Korea is at the forefront of the broadband services revolution, and we are proud that Riverstone products and technologies are helping to drive this tremendous growth," said Romulus Pereira, president and chief executive officer of Riverstone Networks. "Through our exclusive focus on the metropolitan area network, we have been able to deliver products that meet the needs of tier-one carriers in Korea and around the world. This focus also spurred the creation of a world-class customer care program that brings together technical, logistical and implementation support, which are all crucial when rolling out and maintaining large carrier networks."

PowerComm will deploy interlinked RS 38000 aggregation routers in its metro core and RS 1000 and RS 3000 access routers in its metro edge, which will reach every district throughout greater Seoul, with a population of 11 million. The network will offer Layer 2 and Layer 3 services and feature Riverstone's Rapid Ring Spanning Tree resiliency technology for high availability and operational simplicity. In addition to offering its own Internet-based services to compete with traditional legacy service providers, PowerComm will also lease its network to local broadband service providers. PowerComm has installed over 60,000 km of optical fiber throughout Korea.

"Riverstone has strung together an impressive series of wins in the Korean market -- Korea Telecom, DACOM, and now PowerComm," said Dave Dunphy, senior analyst at Current Analysis. "These wins speak well not only of the product, but also of Riverstone's ability to build channels and support capabilities to handle large customers worldwide."

PowerComm is a subsidiary of the Korea Electric Power Corp. PowerComm marks the latest in a series of major Korean carriers to deploy Riverstone's metro routing technology. Korea Telecom and DACOM Corp. have also created advanced metro networks with Riverstone equipment over the last year. KDC, the leading network integrator in Korea, will assist PowerComm in designing and positioning its next-generation network, and will deploy and service the Riverstone routers locally.

"PowerComm has significant fiber assets and is a leading broadband service provider in Korea," said David Gross, senior networking analyst, Communications Industry Researchers. "With nearly 11 million residents, metropolitan Seoul is one of the world's largest regions. By delivering dependable systems that support Ethernet transmissions as reliably as established telco protocols, Riverstone has become a premier metro router supplier for big carriers. In turn, its experience supporting large installations is adding to its momentum in this market segment."

About Riverstone Networks

Riverstone Networks, Inc. (Nasdaq:RSTN) builds routers that convert raw bandwidth into profitable services for Metropolitan Area Networks. Riverstone's products enable the creation of profitable services and the delivery of these services over next-generation and legacy networks, including SONET/SDH, Gigabit Ethernet, T1/E1, T3/E3, ATM, and Wavelength Division Multiplexing (WDM). Riverstone products bring together fourth-generation Application Specific Integrated Circuits (ASICs), battle-tested routing software, and unparalleled media versatility to deliver comprehensive solutions for Metropolitan Area Networks. Riverstone's products are deployed in more than 40 countries and in some of the world's largest networks, including British Telecom, Korea Telecom, Qwest Communications, Cox Communications, MAE West Ames, EarthLink, NTT, and Telefonica. For more information, please visit the company's Web site at www.riverstonenet.com.

Except for the historical information contained herein, the matters set forth in this press release are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements speak only as of the date hereof and are subject to risks and uncertainties that may cause actual results to differ materially. These risks and uncertainties include the risks detailed from time to time in Riverstone Networks' SEC reports, including its final prospectus dated March 3, 2001. Riverstone Networks disclaims any intent or obligation to update or revise these forward-looking statements.