On Monday (18th), Consolidated Communications (15th largest telco in the U.S.) and Coaxsys will announce that: Consolidated has begun deploying Coaxsys' TVnet products in homes enabling Consolidated to provide IPTV service or the third piece of the "triple play" to its customers.

According to Coaxsys, "This is significant because it signals the beginning of major companies providing IPTV and deploying products. Additionally, this is the largest in-home deployment of IPTV home networking products in the U.S. to date."

Here is the release in advance of the Monday announcement.

Coaxsys Enables Consolidated Communications to Deploy TelcoTV Network Services to Customers

Consolidated Communications Uses Coaxsys' TVnet to Deliver IPTV in the Home

LOS GATOS, Calif., April 18, 2005 - Coaxsys, Inc., makers of the #1 deployed IPTV network, today announced that Consolidated Communications Inc., the nation's 15th largest local telephone company based on local access lines, is offering IPTV service to its subscribers using Coaxsys' TVnet.

Coaxsys' TVnet technology instantly transforms subscriber's TV coaxial cable infrastructure into a high-speed, IPTV-ready digital entertainment network. TVnet technology is the only available and affordable solution for delivering IPTV over existing residential wires.

Consolidated Communications, based in Mattoon, IL, is delivering a "triple play" of voice, video and data services to its customers in certain central Illinois markets. Consolidated Communications manages more than 250,000 customer access lines throughout Illinois and Texas.

"As a company that's been in business for over 100 years, we realize the importance of basing all of our services on high-performance, highly reliable products that provide an effective solution for our subscribers," said Matt Hallam, Video Product Manager for Consolidated Communications. "By providing a simple and trouble-free installation for the consumer, Coaxsys has provided a very cost effective solution for real-world IPTV deployment."

Consolidated Communication's DVS consists of over 200 channels, including national broadcast and premium TV, local channels, 45 digital music channels, and a number of Pay Per View channels. The company's digital entertainment service completes a triple play that includes unlimited local telephone and high-speed Internet services for residential customers. Consolidated offers customers packaged services at a discount when they select a bundled package that includes digital TV, high-speed Internet, and local service.

"The alliance between Coaxsys and Consolidated is an affirmation of the superior product and technology that we provide in our innovative TVnet solution," said Michael D'Addio, CEO and President of Coaxsys. "Consolidated Communications is one of the most significant telcos to deploy TelcoTV and is leading the way for next generation services in the consumer home. We believe that TVnet is the only solution that is realistic for large deployments because it is affordable, minimizes customer set up, delivers the performance necessary for IPTV, and most importantly, it is available today."

Coaxsys IPTV 7000 TVnet adapters are as easy to setup as a cable-ready TV. Once a TVnet adapter is connected to the video or broadband source, all other coax jacks in the home become network enabled. Other TVnet adapters can then be connected to any network-enabled device to provide access to the Internet, share peripherals, or stream high-quality digital audio and video, including multi-channel TV and HDTV signals.

TVnet delivers up to 104 Mbps transfer rate and supports distances up to 250 feet. TVnet is also compatible with TV splitters and supports Ethernet unicast, multicast, and broadcast.

About Consolidated Communications
Founded in 1894, Consolidated Communications provides communications services to both business and residential customers including local and long distance, Internet, business systems, retail and wholesale operator services, public services and fully integrated telemarketing and fulfillment services. For more information on Consolidated Communications, visit www.consolidated.com.

About Coaxsys
Coaxsys, Inc., manufactures groundbreaking, high-speed networking and distribution
solutions utilizing standard coaxial cable. The company's new line of TVnet products enables telcos, cable operators, and satellite providers to deliver and distribute voice, data, and video throughout the home. TVnet transforms coax receptacles into a high performance multimedia network, creating new applications for digital communications and entertainment - without having to hardwire Cat 5 cable throughout the home. Coaxsys also licenses its TVnet technology to partners, such as set-top box and modem companies, that wish to make their products TVnet-Ready.

Established in 2002, Coaxsys is headquartered in Los Gatos, California. For more
information on Coaxsys, visit www.coaxsys.com.