Cisco and Dell Participate in $42.1 Million Scenix Equity Investment.

Business Editors/High-Tech Writers

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--May 19, 2000

Scenix, a leading provider of solutions for embedding the Internet, today announced the closing of a $42.1 million equity investment.

Primary participants in this "mezzanine"-round financing included Cisco Systems, Inc., Dell Computer Corp., JatoTech Ventures, L.P., and MSD Capital, L.P. This third-round financing will allow Scenix to expand its design and research-and-development capabilities, add significantly to its operations and manufacturing infrastructure, increase its sales and marketing resources, and explore potential strategic acquisitions.

Also participating were leading European appliance manufacturer Koc/Arcelik/Beko, development tool supplier Nohau Corp, and Silicon Valley entrepreneur Dado Banatao, as well as previous venture capital investors Mayfield Fund, Walden International Investment Group and Vertex Technology Fund.

    In addition, the list of participants included:

    --  FleetBoston Robertson Stephens & Co.
    --  Kistler Associates
    --  Lantronix, Inc.
    --  MCP Global Corporation Limited
    --  Thomas Weisel Partners LLC
    --  Westbridge Ventures

"The response to our fund-raising activity was incredible, and we're very excited about both the size of the equity investment and the caliber of the investors," said Bulent Celebi, president and CEO of Scenix. "We feel that this is an endorsement of our strategy for embedding the Internet in the things that people use and interact with every day, and intend to continue aggressively pursuing that strategy."

"This investment brings us one step closer to delivering an Internet lifestyle," said Mike Moone, group vice president and general manager, Cisco's Consumer Line of Business. "Scenix provides key technology that will further enable consumers to incorporate the Internet into their lives, from Internet home devices to value-added services. We are delighted to work with Scenix to help make this shared vision a reality."

Celebi added, "In addition to being proud of the caliber of investors in this round, we're very much looking forward to exploring with Cisco, Dell, Arcelik and Lantronix ways to integrate our technology into their products."

Scenix

Headquartered in Mountain View, California, Scenix provides communications software and controllers for embedded applications, with a market emphasis on embedding the Internet in everyday things. Scenix is the leading supplier of Virtual Peripheral(TM) software modules, which are functions that are conventionally implemented in hardware. The company's software system-on-a-chip approach reduces time to production and system cost, while providing greater flexibility, compared to traditional design approaches.

    Recognition includes:

    --  "Investor's Choice" award, December 1999, as one of the top 10
        privately held companies at the Technologic Partners
        "Technology Outlook Conference"
    --  "50 Hot Products of 1999" by EDN Europe for the SX-Stack
        TCP/IP network protocol stack
    --  "100 Hot Products of 1998" by EDN for the 100 MIPS SX Series
        communication controller
    --  "10 Top Processor List of 1998" by Electronic News for the 100
        MIPS SX Series communication controller

Additional information on Scenix and its products can be found on the Web at www.scenix.com.

Note to Editors: Virtual Peripheral is a trademark of Scenix Semiconductor, Inc.