The Proficient Investor

Amedia Networks, Inc. (OTC BB: AANI), a provider of next generation media gateways to distribute and manage ultra-broadband triple-play services in the home, today issued its first operational update of 2007. Continuing on the company’s momentum in 2006, in which key strategic relationships were formed and major product development milestones were achieved, Amedia began the New Year with revenue generating equipment shipments to Motorola for trials of the jointly developed MIPX home gateway, and a well-attended demonstration of its Broadband Entertainment Center at the renowned International Consumer Electronics Show (CES) that garnered significant media, analyst, and industry interest.

The MIPX product is the first in a line of IP home gateways intended to provide expanded support for data, IPTV, High Definition TV, and Digital Video Recorders using Motorola’s existing Multi-Service Access Platform for exclusive distribution by Motorola under the Motorola brand. In Q4 2006, Amedia successfully passed the IPTV Gateway System Verification Testing Acceptance Test - a major engineering milestone in the Strategic Alliance Agreement between the companies. To date, Amedia has shipped over $475,000 worth of equipment to Motorola for use in both Alpha lab testing and Beta field testing programs.

“Amedia’s relationship with Motorola has benefited our company a great deal,” said Amedia President, CEO, and Director Frank Galuppo. “Not only has our joint development work with Motorola allowed us to accelerate the innovation of our IP gateways and create a valuable product line, but at the same time, our collaboration has enabled Amedia to generate meaningful revenue throughout that R&D process.”

First introduced in late 2006 as a replacement to the PC as the nerve center of the networked home, Amedia’s breakthrough Broadband Entertainment Center platform was again on display at CES 2007 in Las Vegas. The demonstration showcased the Amedia gateway’s unique capability to offer the collective functionality of multiple home entertainment and networking devices, along with a personal media library - all in a single, compact solution. Press, analysts, and industry professionals alike were all keen on the gateway’s versatility - providing subscribers with unbridled access the Web and streaming video as well as enhanced triple-play services such as IPTV, Video-on-Demand (VoD), and online gaming from virtually any television or networked device, while also offering a customizable media library for storing and viewing movies, home video, and music. Amedia also demonstrated the gateway’s ability to transmit content over existing home wiring (e.g. Coax, Cat 5, HPNA, etc.), as well as wirelessly with the latest Ultra Wideband (UWB) technology.

Visiting Amedia’s booth at CES and covering the demonstration were industry reporters from Forbes.com, PCWorld, TMCNet, CED Magazine, Cable360.net, Beta News, TVOver.net, CE Pro, and Business Weekly among others. Amedia also gained the attention of influential industry analysts at CES and throughout January, securing briefings with Gartner, Parks Associates, Forrester Research, IDC, In-Stat, Inflection Point Research, Infonetics Research, Ovum, and Yankee Group.

“If CES was evident of anything, it was that the battle for control of the digital living room has grown fiercely intense - with the players ranging from various product vendors to all types of service providers,” added Mr. Galuppo. “What was most encouraging, however, was Amedia’s ability to stand out from the crowded field with our unique value proposition to both telcos and subscribers - that is, our combination of complete home networking and multimedia content distribution and management within a single device. Our mission resonated positively with attendees overall, and our product demonstration clearly spoke for itself. Needless to say, our team is excited about the ever-growing partnership opportunities and steadily escalating market potential for Amedia in 2007.”

In addition to the further development of new and existing product lines, Amedia continues to test with leading IP-DSLAM equipment providers such as ADTRAN and Calix, which power the access networks of hundreds of service providers, and is working with these vendors toward conducting live customer trials in 2007.