Amedia Networks (AANI.OB) and Sichuan Jiuzhou Electric Group Company have agreed to distribute the Amedia QoStream family of products in China.

The distribution will be on a non-exclusive basis, as part of Jiuzhou's solution for IP video as well as for data and Voice over IP (VoIP) services. In addition, Jiuzhou will build a Customer Showcase Lab at their headquarters to highlight Amedia's products and demonstrate their capabilities.

Jiuzhou, headquartered in Mianyang, Sichuan has over 30 sales and service locations throughout China, 5,200 employees, and sales volume approaching $250 million. For 14 years, it has retained the leading market position in China for CATV-related access products, and is currently poised to be a leading provider of IP-TV solutions for the video industry. According to ChinaNex FieldCall, IP-TV users in China are projected to grow to 100 million by 2008, with associated revenue of 40 billion yuan (approximately US$4.8 billion.)

"Amedia's QoStream PG1000 and AS5000 are powerful products and represent the ideal solution for the IP-TV capability that we want to offer our customers," commented Mr. Liu Ding Ling, General Manager of Jiuzhou. "Along with their VoIP and data capabilities, they will be at the heart of our triple play offering with the features and flexibility that our customers are demanding."

The QoStream products are designed to be compliant with IEEE 802.3ah Ethernet in the First Mile standards. They offer the longest reach of any FTTP or other fiber-based access solution (90 km), extensive Quality of Services (QoS) capabilities, and can deliver from 1 Mbps to 100 Mbps of dedicated bandwidth to each premises. The products are carrier-grade and fully hardened, and can be managed from a single remote operations center.

"China, and the Pacific Rim in general, offer tremendous growth opportunities for any enterprising Fiber-to-the-Premises systems vendor," stated Frank Galuppo, President and CEO of Amedia. "By some industry estimates, Asia will represent 45% of total global spending on FTTP and FTTN (Fiber-to-the-Node) systems equipment. In light of Amedia's intent to emerge as a dominant player in this exciting, high growth region of the world, partnering with a premier company such as Jiuzhou is a vital step for us, and will substantially help us towards achieving this ambitious objective," concluded Galuppo.