Xtera NXT 20 Gbit/s Differential Phase Shift Key (DPSK) Technology Selected by GlobeNet

ALLEN, TX--(Marketwire - August 17, 2009) - Xtera, a leading network infrastructure provider,
announced today that GlobeNet, a leading wholesale carrier for
international transport and capacity to South America, and a subsidiary of
Oi (listed on both NYSE and Bovespa exchanges) has selected the Xtera NXT
20 Gbit/s Differential Phase Shift Key (DPSK) technology as part of its
submarine network upgrade. The NXT system offers advanced monitoring
capabilities that support rapid system responses to faults, reduces power
consumption, provides higher reliability sealed clam-shell circuit packs,
and is NEBS Zone-4 earthquake compliant. GlobeNet is utilizing the Xtera
technology as part of its submarine network capacity upgrade to 360 Gbps,
which will be completed by August 2009.

"End users across South America are driving innovation and demand for
Internet-based products and services. This demand spans countries,
segments, and sectors, requiring carriers and ISPs to upgrade existing
network infrastructure," said Erick Contag, Chief Operating Officer,
GlobeNet. "GlobeNet is uniquely positioned to deliver the capacity
required to enable carriers to meet this market need, and with Xtera's
leading-edge 20 Gbit/s technology we are able to maximize the capacity of
our network. No other carrier's carrier can match our International
submarine system in terms of latency, reliability, redundancy or number of
on-net locations we can provide throughout Brazil," added Contag.

"We were delighted to have been selected by GlobeNet to deploy the 20G DPSK
technology as part of its submarine network upgrade," said Jon Hopper, CEO,
Xtera Communications. "The supplier and equipment standards required were
demanding but the benefits and innovation delivered by Xtera's technology
and highly skilled resources met all the critical criteria established to
win this important project," added Hopper.

About GlobeNet

GlobeNet is an international carrier's carrier which operates the most
advanced, fully redundant, and lowest latency submarine fiber optic network
linking North and South America. GlobeNet is a subsidiary of "Oi," which is
headquartered in Rio de Janeiro, Brazil. Oi is Brazil's largest telecom
company, focused in offering integrated telecommunication services with a
nationwide reach. Oi is a leader in converged fixed-mobile solutions as
well as a full service telecommunications operator which includes in its
product portfolio services such as rich voice (with local calling services,
long distance and wireless), data communications, Internet, and managed
services for the individual, residential, corporate and government
customers. GlobeNet is headquartered in Boca Raton, FL, U.S. and is the
international subsidiary for Oi services.

For more information, please visit www.globenet.net

About Xtera Communications

Xtera Communications specializes in network infrastructure that delivers
the highest capacity, reach and density. Our long-haul, Submarine, Metro
and WAN technologies together with our deployment expertise drive customer
success and long term value.

Xtera offers an extensive portfolio of Optical Transport solutions for
long-haul, regional, metropolitan and sub-sea networks, and WAN Traffic
Management solutions for both enterprise and telecom companies.

With deployments in five continents, Xtera's Optical Transport portfolio
helps service providers worldwide reach new markets via new deployments,
and extends the life of their existing network assets with cost-effective
upgrades. Xtera's innovative WAN Traffic Management solutions offer
customers the best price/performance in network optimization.

Xtera delivers compelling advantage to its customers by maximizing network
capacity, reach and value.

For more information, please visit www.xtera.com