Arcwave Receives $8 Million in New Financing.

CAMPBELL, Calif. -- Vulcan Capital Leads Latest Round; Participation by Comcast Interactive Capital and Existing Investors in Provider of Wireless Access Solutions for the Cable Industry

Arcwave, Inc., the leader in providing wireless solutions for the cable industry, today announced that new investors Vulcan Capital and Comcast Interactive Capital have joined the company's existing investors in closing an $8 million round of new financing. The new investment, led by Vulcan Capital, brings Arcwave's total funding to $28 million.

Arcwave is developing innovative wireless solutions that enable domestic and international cable operators to leverage the latest wireless technologies to extend the reach of their existing plant and to increase service offerings within their current operating infrastructure. The company has patented technology and experience in the wireless industry combined with a unique understanding of the cable industry business model. Arcwave's solutions are designed for "plug and play" deployment and leverage the existing Wireless DOCSIS(TM) (Data Over Cable Service Interface Specification) standard. Future products are expected to incorporate WiFi and WiMAX technologies.

In connection with the financing, Brian Vincent, director of Vulcan Capital, will join Arcwave's Board. Louis Toth, managing director of Comcast Interactive Capital, will be an observer on the Board. In addition to the new investors in this round, Arcwave's previous investors, Mayfield, Venrock Associates and SBV Venture Partners, have increased their overall investment in the company.

"At a time when cable operators are facing new and increasing competition from telephone and satellite companies, Arcwave is leading the development of a new generation of solutions that enable cable operators to harness the leading wireless technologies to extend their service offerings," said Brian Vincent, director of Vulcan Capital. "In addition, Arcwave is one of those rare companies that can deliver easy-to-deploy solutions that provide customers with an immediate return on investment."

Arcwave's ARCXtend(TM) product is the first wireless last mile solution that allows cable operators to quickly and cost effectively penetrate a large portion of the small-to-medium sized business (SMB) high-speed data market that has been previously unreachable due to cost, regulatory or deployment delay considerations. With ARCXtend, cable companies can increase their SMB "pass rates" in a given market without significant network buildout or disruption of plant operations. By setting a new benchmark in price, ARCXtend also enables cable operators to deploy their high-speed data services to a wider market in a shorter period of time. The ARCXtend solution consists of a pole- or strand-mounted hub that communicates with customer premises equipment connected to a standard DOCSIS cable modem.

"With the ARCXtend product, Arcwave has provided a cost-effective solution that immediately enables cable operators to serve enterprise data customers that were previously out of reach due to cost, complexity, geographic, and regulatory obstacles," said Louis Toth, managing director of Comcast Interactive Capital. "We are pleased with the compatibility of the ARCXtend product with existing network management and back office systems employed at cable operators enabling those operators to extend the plant relatively quickly with the latest wireless technology."

"The financial backing of new investors Vulcan Capital and Comcast Interactive Capital is a strong validation of Arcwave's business model, plans and ability to execute," said Steven Goldberg, CEO of Arcwave. "We look forward to tapping their vast knowledge of the market space as we move forward with the deployment of additional solutions that open new markets for cable operators."

About Vulcan Capital

Vulcan Capital is the private investment group of Vulcan Inc., the project and investment management company founded by Paul G. Allen in 1986 to manage his personal and professional endeavors. Vulcan Capital oversees a multibillion-dollar portfolio across diverse industry sectors and investment asset classes. Its investments range from early stage venture investments to public equity value investing, leveraged buyouts, acquisitions, and distressed situations. Visit Vulcan Capital online at capital.vulcan.com.

About Comcast Interactive Capital

Comcast Interactive Capital (CIC) is a venture capital fund focused on broadband, enterprise and interactive technologies. CIC is affiliated with Comcast Corporation, a diversified global leader in cable, broadband services, telecommunications, and entertainment. CIC's primary goal is to generate superior financial returns from private equity investments in early-stage technology companies. To achieve this goal, CIC works to foster the success of its portfolio companies by bringing to bear the unique resources, experience, and insight of both CIC and the Comcast family of companies. Additional information is available at www.civentures.com.

About Arcwave

Arcwave is the leading developer and provider of wireless plant extension solutions for the cable industry. Arcwave's products enable domestic and international multiple system operators (MSOs) to leverage the latest wireless technologies to extend the reach of their existing services and to increase service offerings within their current plant and operating infrastructure. The company has patented technology and experience in the wireless industry combined with a unique understanding of the MSO business model. Arcwave's solutions are designed for "plug and play" deployment and leverage existing and future technologies, such as Wireless DOCSIS (Data Over Cable Service Interface Specification), 802.11, 802.16d, and 802.16e. Arcwave customers consist of leading MSOs, including one of the top five national cable operators in the U.S. The company is funded by Comcast Interactive Capital, Vulcan Capital, Mayfield, Venrock Associates, Lucent Venture Partners, and SBV Venture Partners.

ARCell and ARCXtend are trademarks of Arcwave, Inc., and DOCSIS is a registered trademark of Cable Television Laboratories, Inc. All rights reserved. All other trademarks are the property of their respective holders.