Ikanos Receives $30 Million in Series D Funding to Support Volume Shipments and Production of Its Broadband Chipsets; Company's Strategic Investors Increase Total Funding to $82 Million.

Business Editors/High-Tech Writers

FREMONT, Calif.--(BUSINESS WIRE)--Feb. 12, 2003

Ikanos Communications, developer of Smart Silicon For Profitable Broadband(TM), today announced that it has received $30 million from its strategic investors in its Series D funding. All existing investors participated in this round, which was lead by Sequoia Capital. Other investors include Anthelion Capital, Greylock Partners, Intel Capital, JPMorgan Partners, Panasonic, Presidio Venture Partners, Ridgewood Capital, Telesoft Partners, VentureTech Alliance (an affiliate of Taiwan Semiconductor Manufacturing Company), and Walden International. Total funding secured to date is more than $82 million.

Ikanos will use the new capital to support volume shipments of its programmable, integrated, broadband chipsets; of which the company has shipped more than 200,000 ports and the volume production started in the fourth quarter of 2002. Ikanos chipsets support multiple international standards of the Very High Bit Rate Digital Subscriber Line-Discrete Multi-Tone (VDSL-DMT) as well as ATM and Ethernet protocols, symmetric and asymmetric applications, and scalable speeds up to 100 Mbps over ordinary copper pairs. As a result, a single Ikanos chipset can serve many markets. With 8 ports, Ikanos chipsets also offer the highest port density in the industry.

The company will also use some of the capital as operating cash to ramp up production. In addition, Ikanos is continuing to expand sales by leveraging the tremendous customer interest in the company's high-performance, reliable, and flexible VDSL-DMT chipsets. As of January 31, 2003, the company had already exceeded its revenue plan for the first quarter of the year and accelerated revenue generation by nine months.

"The ability to attract funding from major investors in today's tough economy is a validation of our success," said Rajesh Vashist, president and CEO of Ikanos. "The funds we've raised will help us keep pace with the extraordinary demand for our solutions. We're shipping in volume to customers that include leading equipment vendors around the world, products that employ Ikanos chipsets are already deployed by leading telecommunications companies, and interest in our high-performance VDSL-DMT chipsets continues to escalate."

Customers for the company's VDSL-DMT solution include Hyundai Networks of Korea, Sumitomo Electronic Industries (SEI) of Japan, ZyXEL Communications Corp. of Taiwan, NEC of Japan, and VDSL Systems of Finland. Multiple carriers in Asia have also deployed broadband equipment based on the Ikanos chipset.

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 solution includes the SmartLeap(tm) 8100, SmartLeap(tm) 8800 A/VDSL for broadband access concentrators and the CleverConnect(tm) 150 for Customer Premise Equipment. These chipsets form an end-to-end broadband solution that enables access equipment vendors to serve many different customers 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, and ADSL-DMT 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].

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