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Covaro Networks Secures $25.3 Million in Funding; Series B Funding Will Support Sales and Operations Development

Posted on: Monday, 23 February 2004, 06:00 CST

RICHARDSON, Texas, Feb. 23 /PRNewswire/ -- Covaro Networks, which simplifies Ethernet services deployment for carriers, today announced that it has closed its Series B funding for approximately $25.3 million. The round was lead by Centennial Ventures -- a new Covaro investor with offices in Denver, Colo., and Austin and Houston, Texas. Participation also came from existing investors CenterPoint Ventures, InterWest Partners and Sevin Rosen Funds. This comes in addition to first-round funding that netted the company $16.7 million.

The $25.3 million raised in this round will be used to increase sales and marketing activities and to enable the expansion of manufacturing and customer support operations for Covaro's Etherjack based products. Etherjack technology is a combination of access hardware and management software that establishes a demarcation point between carriers providing Ethernet services and the enterprises using them. In addition to transporting today's legacy services, Covaro allows carriers to transport and manage value added Ethernet services using traditional operations methods to reduce turn-up, test and maintenance costs. The technology also makes it possible to remotely identify the source of an Ethernet problem in either the customer network or carrier network, enabling service to be fixed or restored more quickly and cost effectively.

"We're thrilled by the results of our latest round of funding," said Covaro Networks President and CEO Joe Bass. "Attracting a new investor and receiving more than $25 million at a time when venture funding is scarce affirms that Covaro is on the way to becoming a vital part of the future of Ethernet services management."

"Centennial Ventures specializes in communications convergence technologies and competitive service providers. Covaro's Etherjack(TM) product is an impressive example of what we look for in new technology," said Duncan Butler, managing director of Centennial Ventures' Austin office. "Covaro has a strong business plan, a seasoned management team and quietly revolutionary technology. We're excited to be affiliated with a company we believe will be an integral part of the convergence technology industry in the years to come."

About Covaro Networks

Covaro develops Ethernet services transport products that address hybrid networks containing both Ethernet and traditional T1/T3 based services. Covaro's unique Etherjack(TM) functionality allows carriers (or enterprises) to transport and manage Ethernet services using traditional management methods to reduce turn-up, test and maintenance costs. The company is headquartered in Richardson, Texas, in the Telecom Corridor(R), but maintains additional development staff in Ottawa, Canada. More information about Covaro is available at: http://www.covaro.com/ .

Covaro Networks

CONTACT: Michelle Metzger, +1-972-480-8383, ext. 231, orMichelle_Metzger@mccom.com , for Covaro Networks

Web site: http://www.covaro.com/

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