BeamReach Networks Raises $35 Million; Second Round Funding Led by The Goldman Sachs Group, Inc.

Business Editors, High-Tech Writers

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Feb. 5, 2001

BeamReach Networks, a leading developer of next generation broadband wireless technology, announced today that it has raised $35 million in a second round of equity financing.

The funding was led by The Goldman Sachs Group, Inc. and includes existing investors Sofinnova Ventures, Walden International, Mitsui & Co., Inc. Private Equity Department, and new investor, Berkeley International Capital. BeamReach was founded in March of 2000 to develop and bring to market its new Adaptive MultiBeam OFDM technology for broadband wireless access networks.

"We are very pleased with the high level of investor interest in our company," commented Bob Kelsch, BeamReach CEO. "We have an outstanding group of global investors, and with their support we will now bring our advanced broadband wireless technology to market."

BeamReach's patented and award-winning technology combines OFDM with adaptive modulation, spectral diversity, spatial diversity through adaptive antennas, and TDD (time division duplexing) to provide tremendous improvement in both coverage and spectral efficiency. The improvements amount to an increase in cell coverage of 3-4 times, and an increase in capacity of 10-20 times over conventional technologies within a given bandwidth, giving operators the ability to serve larger numbers of customers with less infrastructure.

"BeamReach should be a formidable player in the very near future," said Joe DiSabato, managing director, The Goldman Sachs Group. "They have the leading technology, an outstanding team, and an excellent strategy that will move fixed wireless services to the mass market. BeamReach technology makes it possible for wireless operators to compete successfully with broadband alternatives on services, speed, performance, and economics."

Leading industry analysts predict strong growth in the MMDS wireless access market and a growing opportunity for next generation technology suppliers. "Equipment vendors like BeamReach, who enable service providers to offer service more cost-effectively by providing more spectrally-efficient systems, are well-positioned to take advantage of the strong growth projected for the wireless access market," said Peter Jarich, director of broadband research for The Strategis Group (www.strategisgroup.com). "We predict the global market for equipment will reach $2.8 billion by 2004 within a total market of $6.1 billion in global service revenues."

According to Emmy Johnson, principal analyst of Synergy Research Group (www.synergyresearchgroup.com), "The proliferation of the Internet and the demand for high-speed access, has created an enormous opportunity for MMDS wireless access as it provides access to a customer base that cable and DSL are unable to tap into due to geographical and/or technical constraints. Companies like BeamReach, who enable wireless access providers to compete with cable and DSL on capacity, coverage, and pricing, are poised to take advantage of this large revenue opportunity."

About BeamReach Networks

BeamReach Networks has developed and patented new broadband wireless access technology for service providers operating in frequencies below 6 GHz. Its Adaptive MultiBeam OFDM technology delivers unprecedented spectral efficiency, reach, and coverage, and offers wireless operators opportunity for significant business case improvement. BeamReach Systems will first be available for carriers operating in the MMDS, WCS and 3.5 GHz bands and will later be available for other frequencies. BeamReach is a private company based in Mountain View, California. For more information, visit www.beamreachnetworks.com.