1. ® Adtran, Inc. 2008 All rights reserved 1 ® Adtran, Inc. 2010 All rights reserved ADTRAN & Smart Grid January 21, 2010 Kevin Morgan Director, Product Marketing ADTRAN – Carrier Networks Division Kevin Morgan Director, Product Marketing ADTRAN – Carrier Networks Division

2. 2 ® Adtran, Inc. 2008 All rights reserved 2 ® Adtran, Inc. 2010 All rights reserved Smart Grid Defined

3. 3 ® Adtran, Inc. 2008 All rights reserved 3 ® Adtran, Inc. 2010 All rights reserved Virtual Peaking Plant

4. 4 ® Adtran, Inc. 2010 All rights reserved Fiber to Every Substation  Automation of substations with centralized visibility, advanced manageability, and wide area coordination  Foundation for utility-scale applications –Storage –Distributed Generation  High-performance backhaul for many types of AMI  Strategically-positioned points of connectivity for –emergency services, –disaster support, –commercial communications, –cellular and internet penetration

5. 5 ® Adtran, Inc. 2008 All rights reserved 5 ® Adtran, Inc. 2010 All rights reserved Utilities Perspective Fiber Deployment  Investing in fiber, at least to every substation carries no risk, either technically or economically  High-performance infrastructure that interconnects the Operations Centers and Substations serves as a spinal column of a utility system with support for multiple applications

6. 6 ® Adtran, Inc. 2008 All rights reserved 6 ® Adtran, Inc. 2010 All rights reserved Optical Market Segments  Optical Access –Capabilities of fiber optic access offer increased scalability and reliability –Migration to packet networks requires effective TDM transition –CWDM and PON provide fiber relief  Metro WDM –DWDM and multiplexer technology effectively addresses Metro aggregation and transport needs –Represents a natural next step for our Ethernet aggregation platform  Long Haul and Core –Wavelength switching and agility offer versatile and resilient optical transport capabilities –Integrated TDM and packet switching drive additional platform requirements (evolution from pure optical transport)

7. 7 ® Adtran, Inc. 2010 All rights reserved 7 ILEC CO COT Mux Cell Site HVP >20,000 V Fiber Cell Site Provider 12 DS1s OSS CO LAN Scenario – Multiple Customers-High Voltages Cell Site Provider 1DS3 Cell Site Provider 1OC-3 Typical Apps from cell sites

8. 8 ® Adtran, Inc. 2010 All rights reserved The Situation – Smart Grid  There are two different classes of products for Power Companies: –NEBS compliant for Telecom apps –IEEE 1613 compliant for Substation apps  The problem: The two product lines come from different vendors and have different OAM&P, training requirements, price points, and feature sets.  The goal: Consolidate those two categories into one product line with unique hard appliqués for the differing requirements.

9. 9 ® Adtran, Inc. 2010 All rights reserved NEBS vs 1613 NEBS 3  A Telcordia standard for equipment to be utilized in the Public Network. IEEE 1613  An IEEE standard for use in Electric Power Substations

10. 10 ® Adtran, Inc. 2008 All rights reserved 10 ® Adtran, Inc. 2010 All rights reserved Tributary Central Office Customer SiteRemote Site Operation Subtending a SONET Ring or DWDM Backbone OPTI-6100 Subtending high speed rings DS3 DS1 STS-1/EC1 Ethernet (10/100/1000) OC3

11. 11 ® Adtran, Inc. 2010 All rights reserved Proven Performance of SONET/SDH When Carrier Ethernet is not available  Large Deployments of OPTI-6100 for Backhaul –Ethernet, High Bandwidth, Synchronization –Migration Path to Converged Access

12. 12 ® Adtran, Inc. 2010 All rights reserved