News Release

                    Media contact:          Gwen Avery, edgeflow

                                        613-270-9279; gwen.avery@edgeflow.com

                                        Gillian Brouse, for edgeflow

                                        613-230-1863 ext. 223; gillian@reideddison.com

 

EDGEFLOWÔ SECURES FUNDING OF $24 MILLION

Strong interest by carriers and service providers for
edgeflow Optical Add/Drop Switch leads to oversubscribed round

 

Ottawa, Canada, September 17, 2001 — edgeflow Inc. (www.edgeflow.com ), a developer of an advanced metro optical networking element called an Optical Add/Drop Switch (OADX), today announced the completion of a US $24 million Series A round of funding. The funding will be used to expand the company’s activities in sales, customer service, as well as further market and product development.

The lead investors in this round were Sierra Ventures (www.sierraven.com) and Newbury Ventures (www.newburyven.com), a private equity firm focused on investments in communications and information technology companies. Joining seed investor Venture Coaches (www.venturecoaches.com) in this round, new investors include Desjardins Venture Capital Group (www.desjardins.com/id), Primaxis Technology Ventures (www.primaxis.com), RBC Capital Partners Telecom Fund (www.rbcap.com), BTG, (www.btgplc.com) and Pan Dacom Networking AG (www.pandacom.de) of Germany.

            “Our product solution is unique and has attracted strong interest among the major carriers. As a result, we were oversubscribed in this round,” said Wes Biggs, president and CEO of edgeflow. “With this infusion of funding, we are well positioned to achieve our next major milestone -- customer trials.”

 “edgeflow has a great offering for dramatically improving the cost and efficiency of optical networks,” said Ken Wigglesworth, venture partner with Newbury Ventures and principal for its affiliate Eagle One Ventures. “Every major carrier is looking to build a wavelength infrastructure and the solution from edgeflow lets them do it faster and for less cost than any of the competing solutions.”

“The team at edgeflow represents the people who not only invented private networking but who perfected network management in a carrier class environment," said Jeff Drazan, general partner of Sierra Ventures. "I am thrilled with the progress they have made to date."

Today, carriers and service providers are deploying Optical Add/Drop Multiplexers (OADMs) as well as Optical Cross Connects (OXCs) to provide the same functionality as an edgeflow OADX. Aside from the obvious drawbacks of added cost, complexity and footprint, these solutions are not transparent -- meaning that they are not bit-rate and protocol independent. Carriers and service providers are looking to deploy edgeflow’s transparent OADX because it requires just 1/5 the cost and 1/5 the footprint of competing solutions. Unlike all-optical approaches, edgeflow provides performance monitoring and network management that makes point-and-click provisioning of wavelengths a reality. edgeflow’s patent-protected approach positions the company to secure a leadership position in this emerging market.

About edgeflow Inc.

Founded in 2000, edgeflow Inc. (www.edgeflow.com) is a privately held wavelength networking company. edgeflow is building an advanced metro optical networking element called an Optical Add/Drop Switch (OADX). By integrating optical switching and transmission within a single unit, the OADX delivers immediate reductions in cost and network complexity for carriers and service providers. edgeflow offers a uniquely transparent solution (bit-rate and protocol independent) with superior performance monitoring and network management.

 

About Sierra Ventures

Sierra Ventures (www.sierraven.com) is a private Menlo Park, California, venture capital firm that focuses its investments on early and pre-public communications, software and Internet-related content and infrastructure companies. As active lead investors, Sierra Ventures works with entrepreneurs and management teams to build new companies into large, profitable businesses. Sierra manages eight venture capital partnerships, which together have more than $1.1 billion of committed capital.

 

About Newbury Ventures

Newbury Ventures is an international venture capital group focused on investing in and growing entrepreneurial companies in the communication and information technology sectors. The firm specializes in identifying opportunities for significant capital appreciation, by investing in promising entrepreneurial companies at early stages of their corporate development.  Newbury’s partners have financed well over 100 successful emerging growth technology companies, with over a third conceived and built to leverage the binational investment model using multinational skills and resources. Newbury has recently expanded its reach into Canada, adding venture partners Conrad Lewis and Ken Wigglesworth, principals of Eagle One Ventures, based in Kanata, Ontario.  Eagle One Ventures is a "mentor capital" firm created with the objective of accelerating the success of early stage telecom and networking infrastructure companies.  www.newburyven.com      www.eagleoneventures.com

 

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edgeflow is a trademark of edgeflow Inc.  Other trademarks that may be used in this document are property of their respective owners.