Sitara Networks Completes $15.5 Million Financing Round; Investors Enthusiastic about QoSWORKS Platform.

Business/Technology Editors

WALTHAM, Mass.--(BUSINESS WIRE)--Aug. 28, 2000

Sitara Networks, Inc., the leading provider of solutions that intelligently integrate applications and networks for enterprises, ASPs and service providers, today announced the completion of a $15.5 million financing round. The capital was raised from MFS Investment Management, Van Wagoner Capital, Essex High Technology Fund L.P., Deutsche Banc Alex Brown, Thomas Weisel Partners, and other investors. To date, Sitara has raised approximately $65 million.

This financing round will fund continued QoSWORKS development and ongoing global sales, engineering and management staff expansion. This year alone, Sitara:

--shipped its QoSWORKS product line, and a significant v1.5 upgrade;

--more than tripled its staff, from 45 to 155 employees since March 2000;

--initiated global sales with over 100 major enterprise and service provider customers;

--partnered with over 45 channel partners worldwide, including master distributor Tech Data;

--initiated a major advertising campaign with over 20 business and technology publications in North America and throughout the world;

--opened over 20 sales and support offices throughout North America, Europe, the Middle East, Africa, and in the Asia/Pacific region; and

--exhibited and presented at over 10 major industry trade conferences around the world.

"Despite increased competition for more selective venture funding, our overtures for this funding round were greeted enthusiastically by the public and private investment communities who recognized significant value in our market-leading QoS technology," said Malik Khan, CEO and founder of Sitara Networks. "We're confident we have the financial, sales and strategic support required to continue advancing QoS deployments, improve and extend QoSWORKS' scalable, open architecture, and rapidly grow Sitara Networks into a global enabler of QoS."

About the QoSWORKS Product Family

Sitara QoSWORKS is an integrated QoS appliance that enables enterprises, ASPs and service providers to deploy new e-business applications while protecting critical application performance and improving network efficiency. It is the industry's first complete QoS solution containing multiple tools that deploy automatically to manage a wide range of traffic types. As an integrated solution built on industry-standard open platforms, QoSWORKS is highly cost-effective and will easily scale to incorporate future QoS tools and techniques.

About Sitara Networks

Sitara Networks is making networks smarter by intelligently integrating applications and networks. Sitara Networks enables enterprises, ASPs, and service providers to deploy e-business applications on existing networks while improving application performance and network efficiency. These leading edge network solutions are delivered with the world's first QoS (Quality of Service) appliance, QoSWORKS. Founded by Malik Khan, a 12-year veteran of Motorola's Network Systems division, Sitara Networks is headquartered in Waltham, MA, and operates subsidiaries in Canada, South America, Europe and Asia. More information about the company can be found on the Web at http://www.sitaranetworks.com.

Sitara Networks, Inc., Sitara and QoSWORKS are all trademarks of Sitara Networks, Inc.