VPIsystems Secures $9.0 Million to Fund Expansion and Appoints New Board Members.

HOLMDEL, N.J. -- Please replace the release with the following corrected version due to multiple revisions.

The corrected release reads:

VPISYSTEMS SECURES $9.0 MILLION TO FUND EXPANSION AND APPOINTS NEW BOARD MEMBERS

New Investor Core Capital Partners and Existing Investors TVM, Siemens Venture Capital and Cipio Partners Participate in the Investment

VPIsystems announces today that it has secured $9.0 million of funding from leading U.S. and European technology investment firms to expand its sales and marketing efforts and to continue its product development strategy and enhance support programs worldwide. Washington D.C.-based Core Capital Partners, a venture capital firm with over $300 million under management that invests in a broad range of technology companies, led the financing and was joined by existing investors including existing lead investor Techno Venture Management (TVM), Siemens Venture Capital and Cipio Partners. As part of the investment, Pascal Luck, managing director of Core Capital Partners, will join the board.

VPIsystems is the world's leading vendor of software used for modeling and optimizing communications network capacity and improving the efficiency of the network planning process. VPI's customers include many of the world's largest communications carriers and communications equipment vendors. VPIsystems' customers include some of the world's largest operating carriers and OEMs including Bell Canada, Bell South, British Telecom, Siemens, Cisco, Huawei and Fujitsu.

"We are delighted that we were able to attract value-added investors like Core Capital to join our strong base of existing investors," said John Holobinko, president and CEO of VPIsystems. "The proceeds from the financing will be used to increase the company's sales and customer support infrastructure. We also plan to invest in further development of VPIsystems' network resource lifecycle management system, the world's first software system that unifies the entire process of network resource planning and engineering for communications carriers. The combination of product enhancements, company infrastructure investment and expansion of strategic alliances with major equipment vendors and systems integration partners will significantly increase the economic benefits customers can reap from VPIsystems' products."

"We are extremely impressed with the tremendous response the company's products have received from the communications carrier and equipment vendor communities," said Core Capital's Luck. "In this competitive environment, carriers are focused on reducing their capital and operating costs and increasing returns on investment. VPIsystems' technology matches that need via improved network planning, engineering processes and resource lifecycle management."

"We are pleased to continue our strong support of VPIsystems," said Friedrich Bornikoel, managing partner of TVM and chairman of the board. "Core Capital will add tremendous value to the company and its board of directors as we continue to gain traction with customers in the U.S. and Europe."

Major integrators and resellers of VPIsystems software include Siemens AG, Telcordia and Accenture. "VPIsystems is actively engaging in joint efforts with professional services and system integration firms worldwide to deliver its software to customers," said Tom Anthofer, managing partner of Cipio Partners. "The company has experienced tremendous demand for its software solutions from major carriers in North America, Europe and Asia. These high-quality partners helped VPI leverage this interest and deliver superior service to these partners and their end-customers in high-value areas such as Network Resource Lifecycle Management."

The company has also appointed Mr. Christian Unterberger, president of Siemens Communications Fixed Networks and Mr. Tom Anthofer to join its board. They join existing board members Friedrich Bornikoel, managing partner of TVM and chairman of the board; John DiBello, COO of TVM US; John Holobinko; and Casimir Skrzypczak, a former senior executive with Cisco Systems, Telcordia Technologies and NYNEX.

"I am delighted to join VPIsystems' board of directors," said Christian Unterberger. "The company is a strong business partner to Siemens, based on the unique value that VPI's software products deliver to our carrier customers and to us as an equipment vendor. VPIsystems' solutions deliver a very rapid ROI to our customers and provide a strong foundation for continued collaboration between Siemens and VPI."

About VPIsystems

VPIsystems(R) is the leading provider of decision support software and network planning and design software to the world's largest communications carriers and equipment vendors. Major carriers use VPI network planning software to optimize their current network capacity and to minimize the CapEx required to increase network capacity. VPI software enables them to streamline network planning and engineering processes, making network resource lifecycle management significantly more efficient with resulting OpEx savings. VPIsystems software has enabled carriers to more efficiently plan, implement and manage VoIP traffic; implement highly cost-effective backbone networks to interconnect regional networks; improve the way converged services are implemented and managed across their networks; optimize and reduce third party network charges; and reduce the amount of equipment they add to their networks to implement new capacity at the transport and service layers. VPI enables communications equipment vendors to generate more competitive customer proposals that improve sales and enable them to improve their product designs. VPIsystems has offices around the world including Holmdel, NJ; Richardson, TX; Berlin, Germany; London, England; Minsk, Belarus; Melbourne, Australia, and Singapore. For more information visit www.vpisystems.com.

About Core Capital Partners

Core Capital is a venture fund with over $300 million under management that invests in a wide range of transformational technologies. Based in Washington, D.C., Core Capital focuses on investments in information technology, communications, software and business services. Sample portfolio companies include InPhonic, Sourcefire, NexTone Communications, sentitO Networks, Clareos, Solstice Software, SwapDrive, Trinity Convergence, Vocal Data, IXI and VPIsystems. For more information, visit www.core-capital.com.

About TVM

Techno Venture Management (TVM), founded in 1983, is one of the first venture capital firms formed in Germany, and a leader in transatlantic venture investments. The German-U.S. venture capital company has offices in Boston and Munich. For many years, TVM has focused on information technology and life sciences, high growth sectors where innovation, effective management and sound financial backing have enormous impact on company growth. TVM funds have made investments in more than 220 companies in Europe and the United States. A major objective is to create transnational businesses that enjoy access to science, management talent and capital on both sides of the Atlantic. Since 1983 TVM has raised over EUR 1 billion in five fund generations and has established itself as a leading technology investment group in Germany and the United States. For more information visit www.tvmvc.com.

About Siemens Communications

Siemens Communications is one of the largest players in the global telecommunications industry. Siemens is the only provider in the market that offers its customers a full-range portfolio, from devices for end users to complex network infrastructures for enterprises and carriers as well as related services. Siemens Communications is the world's innovation leader in convergent technologies, products and services for wireless, fixed and enterprise networks. It is the largest Group within Siemens and operates in more than 160 countries around the world. In fiscal 2004 (year-end September 30), its 60,000-strong workforce posted sales of approximately 18 billion euros. For more information on Siemens Communications visit www.siemens.com.sg/ic/networks.

About Cipio Partners

Cipio Partners is a leading investment management firm in the secondary direct market. With offices in Munich and London, Cipio Partners manages an international portfolio of early and later-stage venture capital and mid-market investments. Representative portfolio companies include Danger, MontaVista Software, Saifun Semiconductors, Broadbus Technologies and DiBcom. For more information, visit www.cipiopartners.com.