Ikanos Communications Secures Investment from TL Ventures; Additional Funding Increases Series D Round to $33 Million.

Business Editors/High-Tech Writers

FREMONT, Calif.--(BUSINESS WIRE)--July 9, 2003

Ikanos Communications, developer of Smart Silicon for Profitable Broadband(TM), announced today that the company received new funding from TL Ventures to close its Series D round with $33 million. The company will use the additional capital to support volume shipments of its broadband chipsets in Korea, Japan, China, and Europe.

"This additional funding serves as a resounding endorsement of Ikanos' industry leadership and their significant customer traction. We are proud to support Ikanos' future success as the company leads the way for a seamless industry migration from ADSL to VDSL with their standards-compliant products," said Javier Fernandez, a managing director at TL Ventures.

"Similar to what we continue to see from the Asian market, European carriers are now accelerating VDSL-DMT deployment. The increase is based mainly on the IEEE and T1E1.4 committees' selection of DMT as the standard for worldwide VDSL deployment," said Rajesh Vashist, president and chief executive officer of Ikanos. "The additional funding from TL Ventures helps us meet the new and increasing demand for Ikanos' solutions."

Ikanos' programmable, integrated, broadband chipsets focus on the Asian, European and Canadian markets for Very-High-Bit-Rate Digital Subscriber Line-Discrete Multi-Tone (VDSL-DMT), and the U.S. for Fiber-to-the-Premise (FTTP) and Fiber-to-the-Home (FTTH) extensions. The company's chipsets support multiple international standards of VDSL-DMT, as well as ATM and Ethernet protocols, symmetric and asymmetric applications, and scalable speeds up to 150 Mbps over ordinary copper pairs.

Established in 1988 and with over $1.4 billion under management, TL Ventures is a U.S.-based venture capital firm focused on early-stage opportunities in the areas of software, information technology infrastructure and services, communications, and biotechnology.

About Ikanos Communications

Founded in 1999 and based in Silicon Valley, Ikanos Communications 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 A/VDSL chipset solution includes the SmartLeap(TM) family for Broadband Access Concentrators and the CleverConnect(TM) for Customer Premise Equipment. These chipsets enable equipment vendors to serve many different carriers worldwide while slashing time to market and lowering development, manufacturing, and inventory costs. Ikanos also offers the Ikanos Programmable Operating System(TM) (iPOS), which consists of firmware and APIs. iPOS enables equipment vendors to dynamically configure LRFE, EFM, VDSL-DMT 998, VDSL-DMT 997, VDSL-DMT Flex, ADSL, ADSL+, and ADSL2+ on Ikanos chipsets.

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, the IEEE 802.3 EFM Study Group, 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 1.510.438.6276 or [e-mail].

Ikanos Communications, Ikanos, and the Ikanos logo design are trademarks of Ikanos Communications. All Rights Reserved.