Sunrise Telecom® Reports Second Quarter 2010 Results; Company Achieves Third Straight Quarter of Positive EBITDA

Sunrise Telecom^® Incorporated (Pink Sheets: SRTI) today posted its financial results for the quarter ended June 30, 2010, including its third consecutive quarter of positive EBITDA.

Sunrise Telecom reported revenues of $8.9 million compared to $13.2 million for the second quarter of 2009, and EBITDA of $0.0 million, up significantly from a negative EBITDA of $(1.6) million in the second quarter of 2009. Operating costs declined 33 percent to $6.0 million in the second quarter from $9.0 million during the same period in 2009

Second quarter net loss was $(0.2) million, or $(0.00) per share, compared to a net loss of $(2.2) million or $(0.04) per share in the second quarter of 2009. Gross margin remained stable at 60 percent.

During the second quarter, Sunrise Telecom improved its cash position. It also continued the company-wide transition, rebuilding its sales organization and channels and making key investments in engineering. Second quarter results were impacted by soft bookings in certain regions due to customer budget tightening and purchasing delays.

Sunrise Telecom also announced that its board of directors authorized a stock repurchase program covering up to $1.0 million of company stock during the next 12 months.

"We have a vigorous product development program in place with key product introductions scheduled in the next few quarters,” said Bahaa Moukadam, Sunrise Telecom chief executive officer. "The combination of reducing costs, introducing new products and rebuilding the sales organization will strengthen Sunrise Telecom for the medium to long-term.”

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.

Sunrise Telecom makes available on or through its website its press releases and its annual, quarterly and other reports, and any amendments to those reports, as soon as reasonably practicable after electronically filing such reports with PinkSheets.com. Sunrise Telecom’s website may be found at www.sunrisetelecom.com. Sunrise Telecom files with PinkSheets.com yearly financial statements audited by independent auditor, Armanino McKenna LLP. Its quarterly financial statements are unaudited and unreviewed by Armanino McKenna LLP.

For more information, visit http://www.sunrisetelecom.com or email info@sunrisetelecom.com.

Use of Non-GAAP Financial Measures

Sunrise Telecom reports financial information in accordance with generally accepted accounting principles (GAAP). Management utilizes EBITDA as a supplemental performance measure because it believes that EBITDA, while it is a non-GAAP financial measure, is a useful measure of the company's performance because it excludes charges that may obscure the company's operating results. Management uses EBITDA to manage and assess the profitability of the company’s business.

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 for the release of new products, expectations related to the effects of cost reductions previously taken and the reorganization of the Sunrise Telecom sales channel. These forward-looking statements are subject to many risks and uncertainties that could cause actual results to differ materially from those projected. Specific factors that may cause results to differ include the following: a lack of acceptance or slower than anticipated acceptance for Sunrise Telecom's new or enhanced products and modules; slower than anticipated product development or introduction into the marketplace; unanticipated delays in product delivery schedules; lower than anticipated end-user demand for telecommunications services and a corresponding cutback in spending by customers; increased competitive pressures, including from former employees; rapid technological change within the telecommunications industry; Sunrise Telecom's dependence on a limited number of major customers; Sunrise Telecom's dependence on limited source suppliers; deferred or lost sales resulting from order cancellations or order changes; deferred or lost sales resulting from Sunrise Telecom's lengthy sales cycle; unanticipated difficulties associated with international operations; Sunrise Telecom's ability to manage growth and slowdowns; Sunrise Telecom’s ability to retain its personnel and 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 Sunrise Telecom's reports including, but not limited to, its Annual Report for the year ended December 31, 2009 and its quarterly reports for the periods ended March 31 and June 30, 2010 filed with Pink Sheets. Sunrise Telecom assumes no obligation to update the forward-looking statements included in this press release.