Corrent Raises $16 Million in Its Third Round of Financing.

Business Editors/High-Tech Writers

TEMPE, Ariz.--(BUSINESS WIRE)--Feb. 14, 2002

Company delivers gigabit-speed Internet security processors on

schedule demonstrating competitive advantage and opportunity

to win significant share in fast growing market

Corrent Corp. Thursday announced that it has raised $16 million in its third round of funding, led by venture firm United Investments.

Joining them in the new round are world-leading semiconductor foundry United Microelectronics Corp., Infineon Technologies AG (FSE/NYSE:IFX), a leading global provider of semiconductor and system solutions, and the company's initial investor, Battery Ventures.

Last year, Morgan Stanley led a second round of funding of $7.5M and Battery Ventures led the company's initial round in 2000. To date, Corrent has raised more than $32 million in venture funding.

This round of funding comes 11 months after Corrent unveiled its plans to design a high-speed network security architecture from the ground up and two months after delivering its first samples of the industry's highest performing gigabit-speed secure socket layer (SSL) processors.

"Corrent is well positioned to gain significant share of the fast growing high-speed security processor market going forth," said D.C. Cheng, managing director for United Investments. "We are impressed with Corrent's talented team of experts, technology, and ability to execute. They have proven their products provide the right solutions for what the market needs."

A testament to the leadership of the company and the breakthrough performance of the Corrent Packet Armor(TM) and Socket Armor(TM) families of security solutions, Corrent was selected as Best Security Processor for 2001 by Microprocessor Report, a highly regarded industry newsletter that tracks trends and developments in the semiconductor market.

"By being the first to sample system on a chip security processors at gigabit and above speeds, we have delivered on our promise to networking and server equipment designers to provide an advanced architecture that is cost-effective and designed specifically for securing the exchange of vital information over the Internet," said Richard Takahashi, chief executive officer and president of Corrent.

"Our investors recognize the increasing demand for our technology as businesses and governments realize the importance of Internet security."

Corrent is a fabless semiconductor company with a unique line of products that are manufactured on UMC's latest 0.15 micron semiconductor line. This ensures the highest power to performance ratio possible.

Complete with reference designs, extensive software and hardware development kits, Corrent's Packet Armor(TM) and Socket Armor(TM) families include devices that cover both IPsec and SSL, the two dominant standard security schemes of the Internet.

IPsec is used to secure transmissions used in virtual private networks (VPNs) to connect remote campuses and users within a corporation's Intranet or Extranet. SSL is incorporated within Internet browsers to secure electronic transactions among businesses and consumers.

Market analysis firm Infonetics Research forecasts that the equipment markets for VPNs and security-enabled servers will grow to approximately $20 billion by 2005 with a compound annual growth rate of over 110 percent. Security semiconductor devices are forecasted approaching $1 billion the same year.

"As Internet usage continues to escalate, so will the need for Corrent's security solutions," said Jim Orlando, a principal at Battery Ventures and a member of Corrent's board of directors.

"Whether it be for secure IT outsourcing, or Web-enabled extranets or the expansion of remote access capabilities for a more dynamic work force, a secure Internet is the most cost-effective communication medium available to businesses today."

About Corrent Corp.

Corrent Corp.'s high-performance Internet security solutions secure private data within both public and private IP networks at gigabit speeds and beyond. Corrent's scalable, channelized, high-performance architecture performs encryption at the fastest data rates in the industry -- doubling the performance of existing solutions.

Advanced architectures and design techniques deliver a complete sub-system solution to designers of next-generation networks, while providing ease of integration and time-to-market advantages. Corrent's products are designed for use in networking infrastructure equipment such as routers, switches, Web servers, access concentrators, and dedicated IP-services systems.

For more information visit www.corrent.com.