FROM THE CEO

As we close out the second quarter of 2009, we are pleased with our accomplishments and excited about what Q3 will bring. On the product front, in Q2, our GigaMux product portfolio received technical acceptance from the Rural Utilities Service (RUS), a division of the United States Department of Agriculture (USDA). This enables RUS borrowers to deploy the Sorrento GigaMux 50, 1600, 3200 and 6400 to support their expanding bandwidth requirements in rural areas.

On the customer front, we announced Alpheus Communications' deployment of the GigaMux platform and the 10 Gigabit Optical Ethernet Transport (OET) line card, and the renewal of a sole-source contract with the Hawaii Institutional Network (INET) to help boost the bandwidth and speed of its state-wide fiber optic network.

And, on the corporate front, we were thrilled to add Kevin Antill as the company's new vice president of sales for the Americas and Pacific. Kevin, who boasts more than 20 years of telecom sales experience, is overseeing Sorrento's sales organization across North America, South America and the Pacific Rim.

We anticipate Q3 will be an equally progressive quarter as our WDM products continue to gain traction internationally as we expand our network of partners and sell into new corners of the world. We will report back to you again in a few months. As always, I invite you to contact me directly with questions or comments at 303.803.9404 or jnevelle@sorrentonet.com.

We thank you for your time and wish you prosperity in Q3!

Jim Nevelle
Co-founder and CEO
Sorrento Networks

SERVICE FEATURE

IPTV and Triple Play Network Migration

IPTV services are a pivotal feature of the triple play networks being rolled out today. Since the audio/video bandwidth required for IPTV can be up to 100x the bandwidth required for carrier-class VoIP telephony, service providers and network equipment suppliers need the most bandwidth-efficient IPTV protocols, such as IP multicasting which is fast becoming the holy grail of IPTV distribution. However, the high cost of installing multicast routers at every node in the network must be weighed against the decreasing cost of broadcast bandwidth using the latest generation ADM and CWDM technologies. Sorrento's GigaEdge IPTV Backbone Networks reflect the simplicity and low cost of time-proven MSO broadcast fiber networks by taking expensive "Big-Iron" multicast routers out of the backbone of regional video distribution networks.

Although traditionally deployed for larger network infrastructures, WDM equipment has advanced quite significantly in recent years and can now meet the requirements in the edge and access network space where IPTV delivery and bandwidth constraints are most severe. WDM network architectures provide a hybrid approach allowing for the best features of both Ethernet and Sonet/SDH architectures. By utilizing wavelength services, the specific business driver can be addressed with the most efficient and cost effective solution. Legacy ADM (add drop multiplexer) devices can simply be assigned a wavelength while new Ethernet-based services can be deployed on their own wholly independent, secure, private wavelength, ensuring that these services do not contend with legacy services for priority or preference. In this way, access and edge network operators are able to deliver real value added bandwidth intensive services today with a deployment strategy that will meet their future needs and also offer significant cost savings and flexibility.

SNEAK PEEK

Hear Us Speak

Jim Nevelle, co-founder and CEO of Sorrento Networks, is scheduled to present at the following conferences:

OSP Expo Minneapolis, MN Presentation Title: Overcoming the OSP Fiber Famine with CWDM Presentation Time: Wed., Sept. 2, 8:00 - 8:45 am Agenda: www.ospmag.com/expo/seminars

IT Expo West Los Angeles, CA Presentation Title: Deploying IPTV Presentation Time: Thurs., Sept. 3, 1:00 - 1:45 pm Other Panelists: Brocade and MetaSwitch Agenda: www.itexpo.com