Verizon DSL Hardware Now Available in Stores Under Brand-Licensing Agreement With Actiontec

NEW YORK and SUNNYVALE, Calif. - Consumers, who have been able to sign up for Verizon's high-speed DSL service in retail stores across the country, can now purchase Verizon-branded DSL equipment at the same time in those locations under a brand-licensing agreement announced today by the company and Actiontec Electronics.

A Verizon-branded DSL starter kit will be available in CompUSA stores today, with more retail stores to carry the kit later this year. Actiontec is negotiating the retail relationships and managing the fulfillment process, based on its own long-term affiliations with leading mass market retailers in the United States.

The agreement extends an existing relationship under which Actiontec supplies DSL customer premises equipment through Verizon's internal channels. The expansion of the relationship reinforces Verizon's strategy to compete with cable companies for broadband subscribers in retail outlets.

"Competing for high-speed Internet customers in retail stores allows us to better reach customers when they are actively shopping for electronics and all of the accessories that go with them," said Mary Yarbrough, vice president of retail markets for Verizon. "These shoppers are very receptive to considering broadband services and appreciate the added convenience of receiving the equipment they need at the same time they sign up for service. Actiontec has the products, merchant relationships and distribution systems that will help make our new retail fulfillment program a success."

Dean Chang, Actiontec's president and CEO, said, "This agreement with Verizon marks an important step in the gradual evolution of the DSL fulfillment model toward the retail channel. With high-speed Internet access now becoming an everyday necessity, making both DSL service and equipment available at retail stores is a logical step for DSL service providers to better compete against the cable industry."

The Verizon-branded DSL starter kit contains the Actiontec 54 Mbps (megabits per second) Wireless DSL Gateway - engineered to Verizon's specifications - and instructions for activating the Verizon DSL service, packaged in a single box. The gateway combines an ADSL 2/2+ modem, four-port router and wireless access point in one piece of hardware.

The gateway's integrated wired and wireless networking capabilities will enable Verizon subscribers in the same household to share a single DSL connection as well as files, printers and other peripherals, and multiplayer games.

About Actiontec Electronics, Inc.
Actiontec Electronics develops products and services enabling consumers to leverage internet connectivity to simplify and enrich their lives. Covering the full spectrum of solutions for the digital life, Actiontec's products include broadband gateways, broadband modems, wireless and home networking devices, VoIP adapters, digital entertainment software and devices. Actiontec solutions are offered through broadband service provider partners and through its retail and distribution partners. Founded in 1993, Actiontec is headquartered in Sunnyvale, CA, and maintains branch offices in Atlanta, GA; Colorado Springs, CO; Denver, CO; Basingstoke, United Kingdom; Shanghai, China; and Taipei, Taiwan. For more information, call 408-752-7700 or visit www.actiontec.com.

About Verizon Communications
Verizon Communications Inc. (NYSE:VZ), a Dow 30 company, is a leader in delivering broadband and other communication innovations to wireline and wireless customers. Verizon operates America's most reliable wireless network, serving 53 million customers nationwide; one of the most expansive wholly-owned global IP networks; and one of the nation's premier wireline networks, serving mass market, business, government and wholesale customers. Based in New York, Verizon has a diverse workforce of more than 250,000 and generates annual consolidated operating revenues of approximately $90 billion. For more information, visit www.verizon.com.

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