Comstellar Technologies Adds RealChip to Portfolio of Companies, Takes Lead in $20 Million Second-Round Funding.

Business Editors/High Tech Writers

LOS ALTOS, Calif. and FLORHAM PARK, N.J.--(BUSINESS WIRE)--Aug. 16, 2000

RealChip provides innovative communications chips for tomorrow's

network infrastructure

Comstellar Technologies, Inc., today announced that RealChip Inc., a provider of media-over-packet systems-on-chip (SOCs) for next-generation converged networks, has joined the rising group of communication technology stars in the Comstellar group of companies.

Comstellar took the lead position providing $14 million in RealChip's $20 million total second round of funding. RealChip's first round investors, together with several new corporate investors, contributed the remaining $6 million.

RealChip's media-over-packet SOCs enable communications OEMs to transform networking products across the communications carrier, ISP, enterprise, and subsystem infrastructure. The company's unique, patent-pending technologies and plug-and-play Reality Objects(TM) enable unprecedented time-to-market, fast re-targeting of chip products across multiple system end-products, and unmatched ability to upgrade software in the field.

At the same time, RealChip's products lower both overall cost and risk. Comstellar Chairman Raj Parekh noted that RealChip is a prime example of the type of innovative company Comstellar seeks. "RealChip reaffirms Comstellar's goal to accelerate availability of new core technologies that significantly improve on the choices currently available to companies building communications equipment. RealChip's wealth of IP and unique approach to chip design combines the cost and performance advantages of a custom chip design with the rapid development cycle previously possible only with an ASIC design," Parekh said. "This is the type of leading-edge technology that will drive the next phase of the communications revolution and RealChip provides a significant pillar for the Comstellar business model."

RealChip Chairman and co-founder Rajesh Raghavan added, "Our relationship with Comstellar Technologies provides RealChip with access to a depth of operational resources and communications industry expertise often inaccessible to a start-up. As a member of the Comstellar `Comstellation' of companies, RealChip has a unique opportunity to develop truly innovative strategies and products. Additionally, the funding from our corporate investors validates RealChip's innovative technologies, products, and business model for fast-growing new-generation broadband networks."

RealChip's customers include recognized communications systems houses and network start-up companies with applications spanning voice over IP (VoIP), Internet telephony, DSL modems, cable modems, satellite modems, LAN and remote-access switches, digital WANs, VPNs, and routers. Partners include world-leading intellectual property (IP), EDA tools, and pure-play foundry companies. The company plans to use the second-round capital, along with Comstellar's management expertise to expand its communications systems engineering resources, increase its marketing staff, and support additional capital requirements.

About RealChip Inc.

Founded in Silicon Valley, California in 1998, RealChip ( http://www.realchip.com ) provides unmatched system-on-chip (SOC) products for media-over-packet applications across the communications carrier, ISP, enterprise, and subsystem infrastructure. The company's unique, patent-pending technologies enable key benefits for communications OEMs: unprecedented time-to-market; fast re-targeting of chip products across multiple system end-products; unmatched ability to reprogram and upgrade software in the field; and lower overall cost and risk. With extensive expertise and a proven design methodology for integrating intellectual property (IP) into systems-on-chip (SOCs), RealChip offers unique object-based software and hardware building blocks called "Reality Objects(TM)" for easy, fast plug-and-play into advanced communication chip designs. RealChip has IP, manufacturing, and EDA partnerships with leading suppliers including ASE, Avant!, Infineon, Lexra, PalmChip, SPIL, TSMC, and UMC.

About Comstellar Technologies, Inc.

Comstellar Technologies, Inc. ( http://www.comstellar.com ) is the premier organization for architecting innovative companies that will develop core disruptive technologies to dramatically improve the capabilities of the communications network and drive the next generation of communications. Its founders have a proven record of leadership and expertise in the communications industry at companies such as Telcordia, IBM, Sun, StratumOne, Cerent and Siara. Comstellar, with headquarters in New Jersey and California, has raised more than $140 million in investment capital, led by Accel Partners and New Enterprise Associates. Other investors include Clarity Partners, First Analysis Venture Capital, Goldman, Sachs & Co., J.P. Morgan Ventures, Lehman Brothers, Mayfield Fund, Oak Investment Partners, and Soros Private Equity Partners.