Crossbeam Systems Secures $18M in Series C Funding.

Business Editors/High-Tech Writers

CONCORD, Mass.--(BUSINESS WIRE)--May 5, 2003

Crossbeam Systems(R) Inc.

-- Significant Enterprise Customers and Expanded International

Distribution Systems Build Momentum for Leader in Security

Services Switches

Crossbeam Systems(R) Inc., a leading global developer of total security solutions required for safer, simpler networks, today announced that it has secured $18 million in Series C funding.

Led by Matrix Partners, North Bridge Venture Partners and Commonwealth Capital Venture Partners, along with Intel Capital and Charles River Ventures, the funding brings Crossbeam's total to $52 million. The fully financed company will use the funds from this round to expand its operations worldwide.

The funding news follows developments in the first quarter of 2003 in which Crossbeam made noteworthy advances in significantly increasing its customer base, global reach and industry recognition. The company is leading the market for security services switches, recently identified by the Yankee Group as the major emerging technology for protecting networks. A February 2003 Yankee Group report labeled Crossbeam a "winner" in security technologies that increase trustworthiness of e-business systems.

"Given the difficult funding environment, this round provides a tremendous affirmation of Crossbeam and its security solutions, affirmation which is driven by our growing, global base of blue-chip customers, channel partners and technology partners," said Peter George, Crossbeam's president and CEO. "We are entering an incredibly important time for our company, and plan to use these new funds to further expand our product offerings and global operations to better serve our customers."

New Customers, Channel Partners Set the Pace for Safer, Simpler Networks

Crossbeam's newest customers span the globe, and include ALLTEL (NYSE: AT), a communications provider with more than 12 million customers in 26 states; DCS, a Sabre company through which more than one-third of all German air travel is booked; Fujitsu Services, a worldwide IT leader; Britannic Money, one of Britain's leading providers of mortgages and financial services; and Winsonic Holdings, a major service provider to the entertainment, massive multi-player video gaming and film industries.

Global channel partners now include Azlan, the leading pan-European networking solutions group; Asgent, Japan's leading developer and distributor of network security solutions; and Secui.com, a subsidiary of Samsung that is one of Korea's leading providers of network security solutions. Additionally, Crossbeam has signed agreements with 15 resellers in North America, and plans to add further reseller partners in North America and other key international markets to bring the benefits of its solutions to a broad, global customer base.

"The Crossbeam X40 has been an integral part of our security infrastructure," said Nick Tapley, head of technology for Britannic Money. "Our customers trust us to provide them with excellent financial services. They also trust us to keep their data secure, and they expect our services to be available to them at all times, over the Internet, in person or via telephone. Given our large customer base, and the incredibly high volumes of consumer credit information we handle, it was imperative that we choose a security solution that delivered incredible performance and rugged security. The Crossbeam X40 has come through on all counts."

"Winsonic recently implemented the Crossbeam X40 to provide a carrier-class firewall solution for our network that fosters worldwide voice, data, audio and video transport," said Winston Johnson, founder and chairman of Winsonic Holdings. "Security and performance are both paramount for the Winsonic Digital Cable Systems Network (WDCSN). We're moving vast volumes of video content between our customers, providing online interactive media, and needed a solution that could balance speed, security and up-time. The Crossbeam X40 has certainly fit the bill for this."

"Samsung Secui.com is pleased to partner with Crossbeam Systems to bring flexible, high performance network security to our customers," said Kyongsoo Oh, president and CEO of Secui.com. The company recently agreed on an original equipment manufacturing (OEM) arrangement to sell Crossbeam's security services switches under the Secui name. "As one of the fastest-growing providers of security technology to the Korean and Chinese markets, we choose our OEM partners carefully. We were impressed with the combination of Crossbeam's technology, management team and commitment to market leadership in the network security space. These items, combined with Crossbeam's growing international presence, make them an ideal partner."

About Crossbeam Systems

Crossbeam Systems, Inc., is a leading global developer of total security solutions required for safer, simpler networks. Crossbeam enables companies to consolidate their security infrastructures while preserving their security policies, resulting in significant savings in capital and operational expenses. Crossbeam's patent-pending architecture integrates best-of-breed security engines such as firewall, virtual private networks, intrusion detection and content security into high performance, highly available, self-healing security services switches. The company's has tailored solutions for global enterprises, carrier networks and medium-sized businesses.

Headquartered in Concord, Massachusetts, Crossbeam was founded in early 2000 and is led by senior executives from Bay Networks, Cisco, Nortel/Wellfleet, Cascade/Ascend and Alcatel. With a presence in North America, Europe and Asia Pacific, Crossbeam is backed by top-tier investors including Matrix Partners, North Bridge Venture Partners, Commonwealth Capital Venture Partners, Intel Capital and Charles River Ventures.

More information is available at www.crossbeamsystems.com.