SANTA BARBARA, Calif. -- Occam Networks, Inc. (NASDAQ:OCNW) announced today that on August 16, 2007 it received a notice from the Nasdaq Stock Market stating that Occam is not in compliance with NASDAQ’s Marketplace Rule 4310(c)(14) because Occam has not timely filed its Quarterly Report on Form 10-Q for the three months ended June 30, 2007. NASDAQ will continue to broadcast an indicator over its market data dissemination network noting Occam’s non-compliance. The presence of an indicator does not constitute a trading halt or delisting.

Occam has delayed the filing of its Form 10-Q as well as its Form 10-Q for the three months ended March 31, 2007 and Form 10-K for the fiscal year ended December 31, 2006 because its Audit Committee is conducting a review of Occam’s prior revenue recognition practices, including a review of Occam’s commitments to provide customers with software, hardware and software maintenance, upgrades, training, and other services in connection with customers' purchases of Occam’s network equipment. Occam is working diligently to complete this review and to file its Form 10-K and Forms 10-Q.

On July 17, 2007, Occam received a letter from The NASDAQ Stock Market stating that a Nasdaq Listing Qualifications Panel has determined to grant Occam’s request for continued listing on The NASDAQ Stock Market through September 28, 2007, subject to certain conditions. The Panel’s determination to grant Occam’s request for continued listing is subject to the following conditions: (i) by September 14, 2007, Occam must provide further information to the Nasdaq Hearings Department about the findings and conclusions of the Audit Committee; and (ii) by September 28, 2007, Occam must file its delinquent periodic filings with the SEC.

Occam Networks Inc. (OTC: OCNW - message board)