Advanced Telecommunications Modules Ltd. announces $11.25 million investment; investment syndicate positions company for new product market.

SUNNYVALE, Calif.--(BUSINESS WIRE)--May 10, 1995--Advanced Telecommunications Modules Ltd. (ATML) today announced a major investment by a syndicate of investors led by Oak Investment Partners.

The total investment, a second round following a seed round in 1994, is approximately $11.25 million, with an option to increase that investment within the next twelve months.

The investor syndicate includes Oak Investment Partners, New Enterprise Associates, 3i Group PLC, Sequoia Capital and Advent International. 3i led a group of private investors in the seed round investment in ATML in September 1994. The company was founded in 1993 to bring low cost asynchronous transfer mode networking technology to market under an exclusive license from Olivetti & C. SpA, an original investor and shareholders in ATML.

"This investment gives ATML the capital we need to realize this company's potential," said Pat O'Hearn, company president. "We believe we are well-positioned at the opening of an important new market -- affordable ATM networking for PC workgroups -- and the support of these highly respected investors validates the quality of our approach."

"ATML represents an important investment opportunity because it combines best of breed technology with leadership pricing and a strong management team," said Bandel Carano, general partner at Oak Investment Partners and a member of the ATML board of directors. "This combination is already enabling compelling productivity applications for the desktop 25 Mb/s ATM market."

ATML recently introduced a complete ATM networking solution for PC workgroups, called the Virata family, that consists of three categories of new products: a family of Windows-compatible 25 Mb/s ATM PC network interface cards (NIC), a 25 Mb/s ATM PC workgroup switch and a multimedia file server. The Virata family is designed to be compatible with existing local networks by supporting the ATM Forum's LAN emulation standards and by operating on currently installed category 3 UTP wiring. Consequently, the Virata product line can seamlessly integrate with the existing PC hardware/software environment, and with larger enterprise networks and campus network backbones.

The Virata family has already been proven in daily use in the Cambridge (U.K.) Interactive Cable Television trials to support ATM network users for multiple content services. It is also being used where it was invented: at Olivetti Research Labs for video conferencing and electronic mail.

"This new investment will enable ATML to bring the Virata family to a much larger audience in the U.S. marketplace," said Peter Morris, partner at New Enterprise Associates and ATML board member. "Moreover, it will provide ATML with the funding it needs to develop upgrades, additions and follow-up products in the years to come."

The London-based investment banking firm ARC Associates acted as ATML's advisor in this round of investment.

About ATML

Founded in 1993, Advanced Telecommunications Modules is a pioneer in the development of low-cost Asynchronous Transfer Mode (ATM) technology. The company's technology has a rich pedigree: begun in the Cambridge Ring and further developed by Olivetti Research Labs, it was exclusively licensed to ATML to mold into commercial products. Olivetti & C. SpA remains one of the company's major backers. ATML manufactures and markets affordable ATM products designed for the PC workgroup. The company has offices in Cambridge, England, and in Sunnyvale. In North America, the company operates as ATM Inc. -0-

Note to Editors: Virata is a trademark of Advanced Telecommunications Modules. Windows is a trademark of Microsoft Corp. All other company and product names are trademarks or registered trademarks of their respective holders.

CONTACT: ATML

Pat O'Hearn, 408/523-1400

or

MQPR 

Matthew Quint, 510/651-9744