Supported by a $57,000 investment from the Provincial Government, Avalon Microelectronics is strengthening its position as a key supplier of software for optical telecommunications providers looking for faster transmission of data.

"As demand for innovative, creative solutions in the telecommunications sector grows, Avalon Microelectronics is taking the steps it needs to separate itself from its competition," said the Honourable Shawn Skinner, Minister of Innovation, Trade and Rural Development. "The Provincial Government is pleased to have a diverse mix of business development programs available for local businesses such as Avalon Microelectronics. With these programs in place, we are enabling local enterprises to target new business opportunities."

Avalon Microelectronics develops solutions for high speed fibre optic communications networks. Its products, referred to as intellectual property (IP) cores, are developed as code at its facility in Mount Pearl, and are delivered to customers in Europe, the Middle East, United States, Asia and Canada. The cores enable the fast and efficient transmission of data for optical telecommunication providers. Avalon Microelectronics' major selling point is that it can deliver these products to customers more quickly, at less cost and with less risk than its competitors.

"The investment provided to us by the Provincial Government allows us to showcase our industry-leading IP cores to a worldwide audience and highlights the importance of such funding for small, rapidly-growing companies in Newfoundland and Labrador such as ourselves," said Wally Haas, Founder and CTO of Avalon Microelectronics.

With the provincial support, the company will upgrade the skills of its workforce and add the professional experience its needs to better meet the needs of the telecommunications sector. Avalon Microelectronics is also able to participate in international conferences such as the Optical Fiber Communication Conference where it showcased its products and met with potential clients in May 2010.

"Avalon Microelectronics has secured a level of expertise that can benefit optical telecommunications providers in markets across the globe," said Paul Davis, MHA, Topsail. "The funding provided by our government allows this company to continue its growth by exporting that knowledge and its technology; it further positions the company as a leader in the province's information and communications technology sector."

Avalon Microelectronics also received $18,175 through the Provincial Government's Business Market and Development program in 2009 to attend SUPERCOMM 2009 in Chicago. This investment enabled the company to secure four new clients and initiate relationships with prospective clients across the United States.

This initiative was funded through the Department of Innovation, Trade and Rural Development's Business and Market Development Program and Workplace Skills Enhancement Program.

- 30 -

Media contacts: