Ikanos Communications Receives $5.1 Million in Second Round -- Raising Series C Funding to $30 Million.

Business Editors/High-Tech Writers

FREMONT, Calif.--(BUSINESS WIRE)--Oct. 22, 2001

Ikanos Receives Funding from Intel Capital, Ridgewood Capital, and

VentureTech Alliance

Ikanos Communications, Inc., a developer of next-generation broadband silicon solutions, today announced that it has raised $5.1 million in its second round of Series C funding. Total Series C funding now stands at $30 million, and total funding secured to date is more than $47.3 million. Ikanos will use the new capital to continue to fund research and development, as well as to help acquire new customers. The company also announced that Joerg Sperling, managing director of Ridgewood Capital, has joined the Ikanos board of directors.

Participants in the latest round of funding include new investors Intel Capital and VentureTech Alliance, LLC, an affiliate of Taiwan Semiconductor Manufacturing Company (TSMC), which will be Ikanos' main technology and manufacturing partner. Ridgewood Capital, which participated in earlier funding rounds, increased its investment in Ikanos in this round. Other previous Ikanos investors include Anthelion Capital, Greylock Partners, JPMorgan Partners, Sequoia Capital, Telesoft Partners, and Walden International.

Ikanos is changing the economics of broadband access with programmable silicon solutions that help give equipment vendors the flexibility and performance they need to serve multiple markets worldwide. The company has created a new class of silicon that serves the entire range of worldwide broadband markets and applications in a single chipset, thereby slashing time to market and development costs for equipment vendors.

"Ikanos addresses the bandwidth bottleneck that prevents carriers from extending broadband access from the metro fiber network to most of their business customers," said Ron Norris of VentureTech Alliance. "We believe there will be strong demand for Ikanos' unique silicon solution, which will break that bandwidth bottleneck wide open."

"Ikanos' Series C funding has been oversubscribed by nearly $5 million," said Renee Punian, vice president of finance and administration of Ikanos. "The fact that both new and existing investors of a very high caliber have participated in this latest round of funding is a strong endorsement not only of our technology, but also of our leadership in bringing broadband access to markets worldwide."

Sperling Joins Board

"As a managing director at Ridgewood Capital, I'm constantly exposed to new companies with new technologies and am very familiar with Ikanos' competition," said Joerg Sperling, who has been appointed to the Ikanos board of directors. "Ridgewood has increased its stake in Ikanos and joined its board because we're convinced that the company's technology is the best in the market today."

Sperling has extensive experience in the semiconductor industry. Prior to joining Ridgewood Capital, he was North American investment manager for Infineon Ventures; he also held several positions at Infineon Technologies AG (formerly Siemens' Semiconductor Group). Sperling also worked at AT&T Bell Labs and the Israel Institute of Technology. He currently serves on the boards of a number of companies in the semiconductor and optics industries.

About Ikanos Communications

Founded in 1999 and based in Silicon Valley, Ikanos Communications, Inc., has created a new class of silicon that serves the entire range of worldwide broadband markets and applications with a single programmable chipset. Ikanos' industry-leading solution enables access equipment vendors to serve many different customers while slashing time to market and lowering development, manufacturing, and inventory costs.

Ikanos Communications provides comprehensive offerings that encompass silicon, embedded software, reference designs, high-level APIs, and extensive documentation. Ikanos is a member of, and contributes to, ANSI, DSL Forum and ITU-T. For additional information about Ikanos Communications, please visit the company's Web site at www.ikanos.com or contact Connie Henry at 510/438-6276 or [e-mail].

Note to Editors: Ikanos, and Ikanos Communications, and the Ikanos logo design are trademarks of Ikanos Communications, Inc. All Rights Reserved.