ASSIA, Inc. Secures $10M in New Financing.

Strategic DSL Service Provider Investment to Fuel ASSIA'S Advanced DSM Development

REDWOOD CITY, Calif. -- ASSIA, Inc., the leading provider of high-performance software tools for Dynamic Spectrum Management (DSM) of Digital Subscriber Line (DSL) networks, today announced that it has secured $10 million in strategic investment financing. New investors Mingly China Growth Fund and SFR Development joined previous investors Swisscom Ventures, Stanford University, and T-Venture in raising this round. ASSIA has more than 23 million lines under management with top tier service providers in North America and Europe and trials underway on those continents as well as Asia and South America.

"ASSIA is pleased to have strategic telecommunications service providers lead this infusion of cash to accelerate ASSIA's next generation products to market. This financing is an endorsement of ASSIA's DSM technologies, as well as recognition of the successful deployments of ASSIA's first generation of profitable DSL Expresse[R] software products," said Dr. John Cioffi, Chairman and CEO. "We are pleased to welcome our new investors and would like to thank previous investors for their continuing support."

ASSIA has pioneered the application of DSM technologies to manage DSL networks with its industry-leading Expresse software. Expresse enables DSL service providers to realize dramatic speed and reach improvements, lowering operating and capital expenses, generating incremental revenue, and opening new business opportunities in the broadband-enabled home.

Mingly China Growth Fund Managing Partner David Xu said, "The early success of ASSIA's product trials at major Chinese DSL service providers led us to conclude that ASSIA's products are unusually innovative and far ahead in product capability and value compared to all Asian and Western equipment manufacturers. Mingly wants to share in and help promote the growth of ASSIA's emerging large business opportunity in China."

Jean-Francois Caillard, Director of SFR Development said, "The quality of ASSIA's first generation products deployed in many operators throughout the world has motivated SFR Development to help ASSIA accelerate its future DSM products to market. ASSIA is a unique and innovative company that recognizes the importance and dominance of copper-based broadband access throughout the world and is dedicating outstanding product and technology resources to significantly improve the speed of these networks." T-Venture's CEO Georg Schwegler added, "We are positive about ASSIA's activities at Deutsche Telekom. Assia's vision of how to grow and profit from copper-based access networks merits the support of DSL service providers."

"ASSIA has a strong plan and has established a unique position in the market," said Dominque Megret, Head of Swisscom Ventures. "Swisscom is very pleased to help ASSIA accelerate its future DSM software services' products to market."

Jim Boettcher, private investor and a general partner at Focus Ventures in Palo Alto stated, "This infusion of $10 million additional capital reflects the strength of ASSIA's business plan and product offering, despite the troubled economic climate. It is a rare accomplishment to attract this kind of attention and funding in present economic conditions."

"The demand from operators for a powerful, flexible, and affordable DSL optimization tool remains strong," said John Cioffi. "In fact, ASSIA often hears from customers that they desire a cost-effective alternative to deploying a fiber network to the home. Moreover, ASSIA is very encouraged by the interests of several other DSL service providers to add or increase their investments in ASSIA in a second funding close soon. ASSIA's goal is to deliver the broadband future with existing DSL networks, and these investments will accelerate that goal's achievement."

About ASSIA

ASSIA, Inc. is the leading provider of high-performance software tools for Dynamic Spectrum Management of DSL networks. ASSIA's products enable DSL service providers to realize dramatic speed and reach improvements, lowering operating and capital expenses, generating incremental revenue, and opening up new business opportunities in the broadband-enabled home. ASSIA has more than 23 million lines under management with top tier service providers and is backed by strategic investors, including Mingly China Growth Fund, SFR Development, Sofinnova Ventures, Stanford University, Swisscom Ventures, and T-Ventures. For more information, visit www.assia-inc.com.