December 1, 2003
Chiaro Networks Enters the Rapidly Growing Telecommunications Market in Japan
Chiaro Establishes VAR Relationship With K-Solutions, Subsidiary of Tier 1 Carrier KDDI, to Distribute Enstara(TM) Products

Chiaro Networks, the developer of true infrastructure-class IP routing platforms, today announced that it is entering the rapidly growing Japanese telecommunications market via a value-added reseller agreement with K-Solutions, a subsidiary of Japanese Tier 1 carrier KDDI that specializes in systems integration services. Under this relationship, K-Solutions will distribute Chiaro's Enstara portfolio of infrastructure-class IP routers to large Japanese telecommunications service providers, including KDDI.

"As broadband access penetration in Japan grows approximately 100 percent annually, high availability and scalability have become key requirements for Japanese IP carriers, notably KDDI," said Kousuke Yamada, executive vice president of K-Solutions. "We have already introduced the Enstara platform to KDDI and they have shown a very high level of interest."

"We think it says a lot about the high availability and other infrastructure-class capabilities of the Enstara platform that a start-up company like Chiaro be selected to supply products to the Japanese telecommunications market," said Ken Lewis, president and CEO of Chiaro Networks. "We are delighted to be working with K-Solutions to penetrate the Japanese market. They are experts at IP network architecture, design and integration, and we have enormous confidence in their ability to not only sell the Enstara platform, but also manage it effectively. We're looking forward to a long and rewarding relationship for all parties."

Compared to the U.S., the Japanese telecommunications market relies more heavily on VARs for sales to Tier 1 carriers such as KDDI. Through the relationship with K-Solutions, Chiaro expects to begin trials of its Enstara platform with at least one Japanese Tier 1 carrier by early 2004.

Enstara: The First Infrastructure-Class IP Routing Platform
The Chiaro Enstara portfolio, the world's first highly available infrastructure-class IP/MPLS router platform, delivers the infrastructure-class ultra reliability, versatility and product longevity required to alleviate telecommunications carriers' "crisis of cost." Integrating a number of Chiaro technological breakthroughs -- and the result of applying expertise in the fields of telecommunications, networking, supercomputing and photonics -- the intelligent, carefully architected Enstara platform results in no less than the transformation of IP networks.

Available in configurations for different applications and system sizes, the Enstara portfolio offers carriers a powerful new way for telecommunications service providers to achieve unprecedented cost savings.

Background on KDDI and K-Solutions
KDDI, the second-largest carrier in Japan, maintains data centers in 27 sites in 12 cities throughout Japan and 21 sites in 10 countries around the world. These sites provide a broad spectrum of high value-added services, from solution services such as security and EC construction to platform services such as on-line payment and streaming. The KDDI Group includes business units offering a wide range of telecommunications services to residents and businesses nationwide, including local loop, long-distance and international telephony, ISP/data networking and CDMA-based mobile telephony and data services.

K-Solutions Inc., a subsidiary of KDDI, was formed in 2001 by a merger between KDD Network Solutions and Telecomet International Inc. K-Solutions. K-Solutions' activities include the design, development, sales, installation, operation and maintenance of IT systems, communications networks, and power, air conditioning and building facilities; worldwide network support services for Japanese firms overseas; and systems integration services.

About Chiaro Networks
Chiaro Networks is the provider of the Enstara router, the industry's first highly available infrastructure-class IP/MPLS platform. The company, with headquarters in Richardson, Texas, has developed the Enstara portfolio with the goal of solving the "crisis of cost" issues facing service providers, reducing capital expenditures per PoP by more than 60 percent. With strong support from the venture capitalist and technology communities, Chiaro has secured $210 million to date from backers such as Intel Capital, Siemens Ventures, Sevin Rosen Funds and STAR Ventures. The company also boasts a Technology Advisory Board that comprises business leaders and academics from MIT and Stanford University. For more information on the company, visit www.chiaro.com.
Chiaro Networks and Enstara are trademarks of Chiaro Networks. Chiaro Networks disclaims any proprietary interest in the marks and names of others.

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