Actelis Networks Brings Series C Total to $45 Million.

Business Editors

FREMONT, Calif.--(BUSINESS WIRE)--June 26, 2001

Actelis Networks, the first company to boost copper performance to fiber-quality speed and reliability, announced funding from Anschutz Investment Company, the founder and a major shareholder of Qwest Communications, Innovacom (France Telecom venture capital subsidiary), Salomon Smith Barney, Draper Fisher Jurvetson MeVC, and Vertex US. Earlier Actelis announced a $26 million first closing of series C led by Carlyle Venture Partners with backing from all existing investors, which include New Enterprise Associates, U.S. Venture Partners, Walden, Global Catalyst Partners, and Vertex Management. Actelis noted that three out of the existing investors increased their investment beyond their pro rata share.

"The Actelis platform offers a very compelling technology for carriers to upgrade their existing copper infrastructure to a next generation broadband network," said Scott Carpenter, vice president of Anschutz Investment Company. "Actelis is focused on the segment of the network that carriers continue to spend billions of dollars on annually."

"Actelis' opportunity in Europe is very promising," said Frederic Veyssiere, managing director of Innovacom. "We view the Actelis technology as a potentially significant market disrupter in the provisioning of transport solutions in the local loop."

"Having investors with close ties to the carrier community will support developing strategic relations with our major customers," said Yuval Baron, CEO of Actelis Networks. "We welcome the additional technical and strategic resources our new investors provide within the telecommunications industry."

With more than a dozen U.S. patents pending, the Actelis high-speed transport platform allows carriers to offer first-day deployment of fiber-quality services on a universal scale. By boosting the speed, range, and reliability of copper pairs, carriers can offer affordable, same day provisioning of ultra high-speed services to virtually any copper-fed remote terminal cabinet or business.

Actelis Networks is led by a first-rate executive team comprised of top ranked industry leaders from companies such as JDS Uniphase, Fujitsu, ADC, Nortel Networks, Comverse Technology, 3Com and Centillium Communications. The recent series C investments bring the Actelis funding total to $74 million.

About Actelis Networks

Actelis Networks is the first company to radically boost the speed, range, and reliability of copper to achieve fiber performance and quality in the local loop. By the decade's end, over 10 million businesses in the U.S. will not be fiber-fed. Actelis Networks will bring the fiber era to these small to medium-sized businesses. Actelis is pioneering a new generation of broadband transport that enables local carriers and service providers to rapidly deliver high-speed, high-value services over existing copper assets. Founded in 1998 and headquartered in the Silicon Valley, Actelis Networks is backed by preeminent telecom investors. Actelis was recently named one of the top 100 private technology companies by Upside Magazine. For more information please visit the Actelis corporate Web site at www.actelis.com.