SAN JOSE, Calif., Nov. 24 /PRNewswire-FirstCall/ -- Sunrise Telecom(R) Incorporated (Pink Sheets: SRTI), a leader in test and measurement solutions for telecom, wireless and cable networks, today announced that it has signed a definitive agreement to sell its Italy based Protocol Products Group (PPG) to LTE Innovations, a leading OSS consulting organization for the telecom industry for approximately 8 million euros, roughly $10 million in cash. The transaction is expected to close in the fourth quarter of 2008. The completion of the transaction is subject to customary closing conditions.

Sunrise Telecom's PPG division is well known for its 3GMaster and NeTracker protocol analyzer solutions, though most recently, its Traffic Analysis and Monitoring System (TAMS) and Mobile X-Ray(TM) Mobile Data Services analysis platform have gained worldwide recognition as dominant monitoring and troubleshooting platforms for advanced telecom environments.

The companies will be working together during the coming months to create a new entity focusing on the growing market for Customer Service Assurance solutions, which allow wireless and wireline operators to manage next-generation voice and data services over converged network infrastructures.

Michele Campriani, general manager of Sunrise Telecom's Protocol Products Group, stated, "Operating as a profitable standalone business from day one will afford the new company the opportunity to expand its presence and improve its competitive positioning. For our existing partners and customers, we remain focused on providing the same high-quality products, services and support that have set us apart from the competition in the past years."

"Through its innovations with TAMS and the rest of the product line, Sunrise Telecom's PPG division has effectively set the standard for monitoring solutions in the emerging area of Customer Service Assurance for next-gen telecommunications," said Jarkko Multanen, CEO of LTE Innovations. "Leveraging our strengths and partnerships in the OSS consulting arena, we have set the foundation for a world-class company that will have a sustainable competitive edge."

Paul Marshall, president and CEO of Sunrise Telecom commented, "The sale will enable Sunrise Telecom to better focus on its core business -- developing intuitive, innovative test equipment for communications service providers' installation and maintenance needs. Additionally, this transaction strengthens Sunrise Telecom's liquidity."

Cabrillo Advisors, LLC served as exclusive financial advisor to Sunrise Telecom in the transaction. Cabrillo Advisors is an investment banking firm focused on providing high-quality merger, acquisition and capital raising expertise to public and private companies in the middle-market.

About Sunrise Telecom Incorporated

Sunrise Telecom develops and delivers high-quality communications test and measurement solutions for telecom, cable and wireless networks. The Company's robust portfolio of feature-rich, easy-to-use products enables service providers to deliver premium voice, video, data and next-generation digital multimedia services quickly, reliably, and cost-effectively. Based in San Jose, California, Sunrise Telecom distributes its products through a direct sales force and a global network of sales representatives and distributors. For more information, visit http://www.sunrisetelecom.com or email info@sunrisetelecom.com.

SUNRISE TELECOM, the "S" logo, and other trademarks are trademarks of Sunrise Telecom Incorporated and may not be used without permission.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and Section 27A of the Securities Act of 1933, including, but not limited to, material contained in quotations, expectations regarding the closing of the transaction, expectations for the divestiture of non-core assets, expectations regarding a more targeted business focus; and expectations regarding increased liquidity. These forward-looking statements are subject to many risks and uncertainties that could cause actual results to differ materially from those projected, for example, delays in consummating the transaction; shortfalls in revenue; greater than anticipated uses of cash; rapid technological change within the telecommunications industry; our ability to manage growth, slowdowns and changes in the macro-economic environment; the loss of key employees; the long-term impact of cost controls; and the unknown effects of management changes. Some of these risks and uncertainties are described in more detail in our reports filed with the SEC, including our Annual Report on Form 10-K for the period ended December 31, 2007. Sunrise Telecom assumes no special obligation to update the forward-looking statements included in this press release.

SOURCE Sunrise Telecom Incorporated