Pirelli and Arasor enter into a strategic partnership for development of Optical Modules

New partnership wins Huawei Technologies as the initial customer

Cannes, France - 26  September, 2006 - Pirelli Broadband Solutions, the broadband access and photonics company within the Pirelli Group, today announced that it has entered into a strategic partnership with Arasor International Limited, a developer of integrated optoelectronic and wireless solutions, to jointly develop and provide ITLA optical solutions for global system integrators.

"The ITLA module from Pirelli and Arasor is under integration into Huawei's product  to provide a state-of- the-art tunable solution for our global telecommunications network customers,"said David Huo, the Vice President of Optical Product Line of Huawei Technologies.

Under the partnership, Pirelli will go to market with a jointly developed new line of Integrable Tunable Laser Assembly (ITLA) modules for next-generation optical transport applications. The solution, a compact module with built-in control electronics and Pirelli's tunable laser, will be produced in Arasor's Guangzhou, China facility. 

The ITLA is an ideal solution for DWDM optical network systems. Based on MSA standards, it can be easily integrated into an MSA 300-PIN board or a line card.  With no moving parts needed to achieve tunability, the built-in tunable laser is Telcordia GR-468-CORE qualified. The initial set of customers will be networking companies operating in China, including Huawei Technologies, one of the leading systems companies providing optical solutions to telecommunications carriers worldwide.

"By teaming up with Arasor, Pirelli has chosen a proven and reliable partner to provide best-of-class optical solutions for the global marketplace," said Piergiovanni Matrona, Senior Vice President Sales Pirelli Broadband Solutions.  "Furthermore, this strategic partnership allows us to build on Arasor's successful track record in China and provides an excellent platform through which we can enter this new market representing enormous potential." 

"Pirelli Broadband Solutions is a world class photonics company with a long history of innovation and success. We value our partnership with Pirelli as it validates a key element of our strategy to become a leading provider of optical solutions to a global customer base," said Simon Cao, Chief Executive Officer ofArasor.

About Pirelli Broadband Solutions
Pirelli Broadband Solutions is the Company within the Pirelli Group specializing in broadband access technology and photonics. The Access division provides a range of broadband CPE including access gateways, set-top boxes, multiple handsets, and a remote management system; while the Photonics division leverages nanotechnology and its use of tunable and pluggable solutions to deliver multi-wavelength components, modules and subsystems including tunable lasers, RoF, GPON Triplexers, and a CWDM metro access system. In 2005, Pirelli Broadband Solutions posted sales of 112 million euros, with a 78% growth compared with the previous year. For additional information: www.pirelli.com

About Arasor International Limited
Arasor International Limited develops and markets optical chips, components, modules and subsystems to capitalize on the emergence of new applications for photonic technologies.  Under the leadership of one of the strongest management and engineering teams in the optoelectronics industry today, Arasor aims to establish itself as a leading optical solutions company serving Chinese and global systems vendors in the wireless and network transport industries.  Arasor's worldwide headquarters is located in Mt. View, California, USA and also has operations in Guangzhou, China; Shanghai, China; Yokohama, Japan.  For additional information: www.arasor.net.

About Huawei Technologies Co., Ltd.
Huawei Technologies Co., Ltd. ("Huawei") is a leader in providing next generation telecommunications network solutions for operators around the world. The company is dedicated to providing innovative and customized products, services and solutions to create long-term value and potential growth for its customers. Huawei's products and solutions are deployed in over 100 countries and serve 28 of the world's top 50 operators, as well as over one billion users worldwide. For more information, please visit www.huawei.com.