Catalyst Fuels Atlantic Crossing for UK Video Networking Company.

Business Editors/Hi Tech Writers

WINCHESTER, England & OTTAWA--(BUSINESS WIRE)--Feb. 5, 2001

based iMPath Networks Inc ("iMPath"), a leading provider of video networking products that include leading-edge technologies such as Video over IP and Optical FDM, has acquired AMG Systems Ltd ("AMG"), of Bedfordshire, UK.

AMG is a leading provider of digital video networking equipment in the European market, with fibre optic video transmission systems deployed throughout Europe, the Middle East, and the Asia Pacific region.

The shareholders of AMG, including venture funds Strathdon Investments and British Gas Ventures, retained The Catalyst Group to find a buyer Capable of bringing these products to a world-wide market, and in particular North America.

Dr. Alan Hayes, Managing Director and founder of AMG Ltd, commented, "We had been looking for a strategic partner who could help us continue to aggressively exploit our video and fibre optic technologies and enter new international markets. iMPath is a great fit for us; we expect 2001 to be a very successful year."

Hugh Stewart, Managing Director of Strathdon Investments Ltd, the lead venture capital provider in AMG, commented, "iMPath is pre-IPO, and presented an attractive stock-based offer. The Catalyst Group principals, based in both the UK and in the US, managed the entire M&A process and played the primary role in negotiating the terms of the merger. In addition, by having a presence in both the UK and the US, Catalyst was able to play a significant role in the due diligence process with respect to both companies. Catalyst's skill sets, founded on a base of industry experience, finance, and law, were ideal for this trans-Atlantic deal. We are extremely pleased with their performance."

Catalyst conducted a world-wide search and iMPath was selected from the companies interested in acquiring AMG because of its market position, complementary products, and its technology vision and strategy.