Silicon Access Networks Raises $56 Million; Third Round Funding Led by Affiliates of Soros Private Equity Partners.

Business Editors/High-Tech Writers

SAN JOSE, Calif.--(BUSINESS WIRE)--October 3, 2000

Silicon Access Networks, Inc., a leading network processor start-up company, today announced it has secured $56 million from new and existing investors in its third round of funding. The investment will enable Silicon Access Networks to ramp up development of its iFlow chipset for the next generation 10G/OC192 layer 4+ switches, routers, and Internet edge devices.

Affiliates of Soros Private Equity Partners, a new investor in the company, led this round of funding. In addition to Soros Private Equity Partners, new investors in this round include Pivotal Asset Management and Morgan Stanley Dean Witter. Existing investors also participated in this round, including Comdisco Ventures, the Intel Communication Fund, Norwest Venture Partners, the Raza Venture Fund, the Sprout Group, the venture capital affiliate of Donaldson, Lufkin & Jenrette, Inc., Synopsys, and Tallwood Venture Capital, managed by Dado Banatao.

"We are honored to have such strong support from our existing investors and we welcome our new investors to the company. This third round of funding is a strong indicator that Silicon Access Networks is making progress in meeting our milestones and ramping up to production of our iFlow chipset with patented embedded Smart Memory technology," said Perry Constantine, president and CEO of Silicon Access Networks. "Moving forward, we are establishing design commitments from key customers, and we are on schedule for releasing our co-processor and processor iFlow products -- which will propel us to market leadership in the high-end, 10G/OC192 IP switch/router chipset category."

Silicon Access Networks is pleased to welcome Jonathan Bilzin, a partner with Soros Private Equity Partners, to the Board of Directors of the company. "Silicon Access Networks' iFlow chipset and high-performance embedded DRAM technology have positioned the company to be a primary force in enabling the next generation Internet by serving as the building blocks in high-end IP switches and routers," said Jonathan Bilzin. "Our investment in the company represents an excellent opportunity for Soros to participate in this fast growing market. We believe Silicon Access Networks has the right chipset product at the right time to quickly become a market leader."

Soros Private Equity Partners LLC, an investment affiliate of Soros Fund Management LLC, is responsible for making direct equity investments on behalf of Quantum Industrial Partners LDC, a $3.5 billion investment fund and one of the Quantum Group of Funds. Soros Fund Management is the well-known investment advisory firm founded by George Soros. The Quantum Group of Funds is not generally available to US investors.

"We are pleased to have Soros Private Equity Partners along with our other new and existing investors join this round," said Dado Banatao, Chairman of the Board for Silicon Access Networks. "The support of these investors will be valuable as we engage with an increasing number of network OEMs."

About the Intel Communication Fund

The $200 million Intel Communication Fund was created in 1999 to invest in companies supporting Intel's key programs and initiatives in voice and data communications. The fund, which makes minority equity investments of typically less than $10 million, is initially focused on investments in companies developing solutions based on CT Media, as well as on Intel's Internet Exchange(TM) architecture. The fund is managed and controlled by Intel Capital.

About Silicon Access Networks, Inc.

Silicon Access Networks, Inc. (SNI) is a privately held, Silicon Valley company focused on developing 10G Ethernet/OC192 and above chipsets for the next generation Internet infrastructure. The company is recognized as an emerging leader in developing network microprocessors with advanced smart memory that utilizes embedded DRAM for building high-end switch and router line cards. Founded in 1997, Silicon Access Networks is a full-service semiconductor manufacturing company with headquarters in San Jose, California, development facilities in Ottawa, Ontario, Canada, and a marketing facility in Raleigh, North Carolina. The company is a member of CSIX, CPIX, the 10 Gigabit Ethernet Alliance, and the ATM Forum. For more information, visit www.siliconaccess.com.

Note to Editors: Silicon Access Networks, the Silicon Access Networks Logo, iFlow, are trademarks of Silicon Access Networks Incorporated. All other trademarks are property of their respective companies.