CyOptics Completes New $10 Million Financing Round; Funding Led by JVP Will Support Product Development and New Sales and Marketing Initiatives.

LEHIGH VALLEY, Pa. -- CyOptics, Inc., a leading supplier of high-speed optical engines for broadband communication solutions, announced today that it has secured $10 million in new financing. Led by JVP (Jerusalem Venture Partners) and joined by existing investors including Soros Private Equity Partners, The Sprout Group, Eurofund, Ventech, Innovacom and a new external investor, this latest round of funding will be used to support the development of new products and to boost marketing and sales operations. This is the company's fourth funding round since its inception in 1999.

"CyOptics has weathered the downturn in the communications marketplace and emerged as a stronger, more focused and innovative company," said Glen Schwaber, General Partner at JVP and a CyOptics board member. "From the moment we helped create CyOptics, JVP has remained a firm believer in the promise of highly integrated optical components. JVP is proud to continue its support for the world-class engineers and forward-thinking management team that CyOptics has assembled."

"Our company has succeeded in growing its operations and diversifying its product portfolio to keep pace with the fast-moving optical communications market," said John Pilitsis, President and CEO of CyOptics. "This success is validated by the continued support of our customers and our investors. By handling the design, fabrication and packaging of our products, we are well positioned to offer differentiated solutions at a cost that helps our customers improve their profit margins."

CyOptics designs, manufactures and sells optical engines to industry leading manufacturers of transceivers, transponders and line cards used in optical networking equipment. CyOptics has achieved significant breakthroughs in laser technology that enables superb device performance and has developed proprietary automated assembly and test equipment for uniform production at lowest cost.

About CyOptics

CyOptics develops, designs and manufactures optical engines for broadband metro and access communications solutions. The company's primary focus is to maximize component module functional density/price$ by providing modules that are 5 times smaller than the current industry standard modules and require less electrical operating power. High volume production is enabled by using a highly flexible, "nano-tech" capable robotic manufacturing that delivers high uniformity and low cost. The CyOptics team consists of industry veterans that have had management and technology positions with key players including Bell Labs, Lucent Technologies and National Semiconductor. The Company's wafer/chip fabrication operations are located in Yokneam Illit, Israel while its automated packaging and testing operations are located in Lehigh Valley, PA USA. CyOptics is ISO 9001:2000 certified. For more information please visit www.cyoptics.com or call 1-610-336-5758.

About JVP

JVP is a leading Israeli venture capital firm focusing on investments in early stage companies in the enterprise software & networking, semiconductors & components and communications & mobile infrastructure sectors. With over $680 million under management, and offices in Jerusalem, New York, London and Tokyo, JVP leverages its international presence, vast expertise and substantial capital base to build companies with the potential to shape and dominate global markets. To learn more about JVP, visit http://www.jvpvc.com.