EZEN Ezenia Inc (CE)

Item 2.05.  Costs Associated with Exit or Disposal Activities.

On September 24, 2007, Ezenia! Inc. (the “Company”) announced its plan to consolidate its Colorado Springs [COS] and Nashua [NAS] facilities in Nashua, New Hampshire by year end of 2007.  In connection with the Company’s continuing efforts to expand its product offerings and customer base, the Company believes that the consolidation into one facility will result in increased productivity, better coordination within and across functional organizations, and optimized utilization and deployment of personnel.

It is the Company’s intention, where feasible and applicable, to move all employees from COS to NAS.  All employees currently at other locations remain unaffected.  There is no planned reduction in workforce as part of this consolidation.

The Company expects to incur a cost of approximately $200,000 in connection with the Colorado leased facilities.  The Company estimates that the total amount of cost expected to be incurred in connection with the restructuring (including the lease expense) is approximately $500,000.  The lease expense of $200,000 will be recorded in the fourth quarter of 2007 and the remaining approximately $300,000 for mostly relocation and retention costs will be recorded as incurred over the next six months.  It is expected that the entire expense will be a cash expenditure.

Additional information related to this restructuring is contained in a press release issued by the Company on September 24, 2007, a copy of which is attached as Exhibit 99.1 to this Current Report on Form 8-K and incorporated by reference herein.