Broadband Access Systems, Inc. Raises $44.3 Million in Mezzanine Round Financing.

Business/Technology Editors

WESTBOROUGH, Mass.--(BUSINESS WIRE)--Jan. 31, 2000

Broadband Access Systems, Inc., the industry's first company exclusively focused on providing cable access solutions for the deployment of value-added data and voice services, announced today that it has received $44.3 million in mezzanine round funding.

New investors in this round include Bowman Capital Management, LLC and affiliates of Soros Private Equity Partners LLC, two of the industry's most prestigious investment firms, as well as private investors. Broadband's existing venture capital partners, including Matrix Partners, North Bridge Venture Partners and The Still River Fund, also participated in the mezzanine round.

&uot;To continue our momentum in engaging customers, delivering product and hiring world-class talent, it is important that we have secured appropriate funding&uot; said Dave Paolino, CEO of Broadband Access Systems. &uot;Attracting some of the industry's most successful investment partners is a true validation of what we have achieved to date, and our prospects for the future.&uot;

The mezzanine round brings the company's total funding to $67 million.

&uot;We have watched Broadband's development and have been very impressed with the company's management and technical teams and the potential for Broadband's products both within and outside of the cable marketplace,&uot; said Spencer Punter, general partner for Bowman Capital. &uot;As a result, we were eager to join the mezzanine round to fund the company's final stage of growth before its public offering.&uot;

Broadband Access Systems will use the new capital for general operational growth.

&uot;We are committed to providing the industry with products designed specifically to help today's broadband service providers meet the provisioning challenges presented by high-speed Internet access to homes and businesses,&uot; said Abbot Gilman, COO of Broadband Access Systems. &uot;Our products are unique and they have been received very positively by our customers. That's a winning combination.&uot;

&uot;The market for Broadband's products is accelerating,&uot; said Neal Moszkowski, a partner with Soros Private Equity Partners. &uot;As residential customers - and even small and midsize businesses - look toward cable solutions for high-speed Internet connectivity and telephony services, cable operators must respond by deploying infrastructure products like Broadband's that will allow them to capitalize on the market growth.&uot;

About Broadband Access Systems, Inc.

Founded in February 1998, Broadband Access Systems, Inc. is a leading developer of a new generation of award-winning highly integrated carrier-class broadband access systems that allow service providers to deliver high quality data, voice, and video services to large numbers of users. Headquartered in Westborough, Massachusetts, the company's management team brings years of experience in networking and telecommunications from companies such as Nortel Networks (NYSE: NT), Lucent (NYSE:LU), AT& (NYSE:T), FORE Systems, Digital Equipment Corporation, 3Com (NASDAQ:COMS), and Tellabs (NASDAQ:TLAB). Broadband Access Systems is funded by Matrix Partners, North Bridge Venture Partners, The Still River Fund, Norwest Venture Partners, Bowman Capital Management, and Soros Private Equity Partners. Additional company information can be found at www.basystems.com.