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Intelligent Wi-Fi Equipment Market Leader Colubris Networks Secures $13 Million in Series C Funding

Posted on: Monday, 19 April 2004, 06:00 CDT

New Investors GrandBanks Capital and Mid-Atlantic Venture Funds

Join Previous Investors in Oversubscribed Round; Additional Funding

Underscores Company Momentum Fueled by New Customers, Partners and

Next-Generation Products

¶ Colubris Networks, a global provider of intelligent wireless LAN (WLAN) access equipment and management systems, today announced that it has secured $13 million in series C funding. The oversubscribed round was led by GrandBanks Capital, with participation by new investor Mid-Atlantic Venture Funds. Existing investors, including Prism Venture Partners and the Development Bank of Canada, also participated in the round. The new funds will be used to fuel the company's continued growth in the hotspot service provider and enterprise markets, where it has won significant new customers in competition with Cisco Systems and others. ¶ Founded in 2000, Colubris Networks has been shipping products globally for nearly three years and has more than 500 customers worldwide. The new funding brings the total investment in the company to $21 million. The firm will use the money to expand sales, business development, marketing and engineering efforts. ¶"This investment reflects GrandBanks' confidence in the capabilities of Colubris Networks' outstanding management team, as well as its field-proven products," said Charles R. Lax, managing general partner of GrandBanks Capital. "The company has established a leadership position in the hotspot market where its cost-effective WLAN solutions have enabled it to notch wins against significant competitors in large accounts, such as Connexion by Boeing, Swisscom Eurospot, NTT-ME and Telecom Italia. It has forged strategic partnerships with major networking systems vendors, including Juniper Networks, Alcatel and ADC, as a result of its technical expertise. The company is strongly positioned for continued leadership and we're excited to be participating in that success."¶ This latest round of funding reinforces the tremendous growth underway at Colubris Networks, highlighted by:

¶ -- Significant new customer deals ushering in 2004. Colubris

Networks announced significant sales agreements with Swisscom

Eurospot, the largest Wi-Fi hotspot provider in Europe, and

broadband Internet access provider STSN. The company has

shipped more than 12,000 devices to Swisscom alone, for

deployment in hotels, convention centers, train stations and

airports throughout Europe.

¶ -- Continued momentum with Connexion by Boeing. Representing the

industry's first broadband in-flight Internet service,

Connexion by Boeing utilizes equipment from Colubris Networks

and its OEM partner, Miltope Corporation. In addition to

agreements with Lufthansa, Scandinavian Airlines, Japan

Airlines, Singapore Airlines and All Nippon Airways (ANA),

Connexion by Boeing announced plans to expand into maritime

communications - a $1 billion industry targeting ship

operators, merchant fleets, governments and private yacht

owners.

¶ -- Strategic partnerships with Juniper Networks, Alcatel and ADC.

Colubris Networks has announced partnerships with multiple

networking industry leaders, including Alcatel (OEM), ADC

(Wi-Fi/DSL OEM), Juniper Networks (joint development and

marketing) and Miltope Corporation (OEM). Technology

partnerships with RSA Security, Funk Software, Airwave and

iPass augment the company's worldwide network of distributors,

OEM partners and value-added-resellers.

¶ -- New products, management platform, architecture. In January,

the company unveiled a series of new products - paired with an

integrated management platform - that expands its portfolio of

intelligent Wi-Fi access devices for enterprise WLANs and

public hotspot networks. Notably, the Extension Architecture

offers a cost-effective alternative to unnecessarily expensive

WLAN switches and overlay network architectures.

¶ -- Industry's first "Virtual Access Point" capability. Colubris

Networks' new access products can be configured to deliver as

many as 16 different Wi-Fi service sets per single device. It

enables hotspot operators to expand roaming services, and

allows enterprise network managers to tailor services to

unique requirements of specific user groups, such as different

classes of employees, contractors, supply chain partners and

corporate guests.

¶ -- Human resource ramp-up. Reflecting increasing demand for its

products, the company added a number of highly regarded

networking industry veterans to its team. Included among those

was John O'Hara, co-founder of successful early-stage firms

WaveSmith Networks (acquired by Ciena Corporation) and New Oak

(acquired by Bay Networks/Nortel Networks). Serving as vice

president of engineering, O'Hara works closely with Colubris

Networks Founder and Chief Technology Officer Pierre Trudeau,

who continues as the architectural visionary and catalyst for

the company's award-winning product line.

¶"Colubris Networks has identified dynamic segments in the Wi-Fi market and delivered technology innovations that are giving the company a sustainable, competitive advantage," said Tom Smith, partner at Mid-Atlantic Venture Funds. "The company is extremely well positioned to capitalize on a multi-billion dollar market opportunity and we're pleased to support its continued expansion and growth."¶"Our company has built a powerful track record of identifying high-value applications for Wi-Fi technology, then delivering best-in-class solutions that enable customers to easily and economically take advantage of those opportunities," said Colubris Networks President and CEO Barry Fougere. "This additional investment, coupled with our strong and growing revenue base, will fund initiatives that we are undertaking to extend our leadership position in large enterprise and service provider markets on a global basis."¶ As part of their firm's investment, Charles Lax of GrandBanks Capital and Tom Smith of Mid-Atlantic Venture Funds are appointed to the Colubris Networks board of directors. They join Fougere and William Seifert, who is a general partner with Prism Venture Partners and is a co-founder and former CTO of Wellfleet Communications.

¶ About the Investors

¶ GrandBanks Capital is a venture capital firm established in partnership with SOFTBANK and Mobius Venture Capital (SOFTBANK Venture Capital). With headquarters outside Boston and an office in New York City, GrandBanks Capital possesses extensive experience and expertise in information technology, Internet and communications, media and financial services, and semiconductor technologies, having funded and managed many successful companies. Colubris Networks joins other GrandBanks portfolio companies, which include Ember Corporation, GlassHouse Technologies, CXO Systems, Coradiant, Enpocket and uLocate Communications and Outstart. For more information, visit www.grandbankscapital.com. ¶ Mid-Atlantic Venture Funds is a private venture capital firm with over $200 million under management. Founded in 1985, the firm has offices in Bethlehem, Pennsylvania and Reston, Virginia. Mid-Atlantic has provided seed and early stage growth capital to over 80 emerging technology and service companies located in the Mid-Atlantic states, plus Boston and North Carolina. For more information, visit www.mavf.com. ¶ Prism Venture Partners is a leading venture capital firm with early-stage investments in communications, business infrastructure software and systems and healthcare. Since inception in 1996, Prism has rapidly gained industry recognition through the firm's depth of entrepreneurial experience among its investment team and active role with its portfolio companies. With over $1 billion in capital under management, Prism's access to a growing pool of seasoned entrepreneurs, collaborative approach to working with portfolio companies and integrated network of investors contribute to the firm's investment success. Additional information on Prism Venture Partners can be found at www.prismventure.com. ¶ The Business Development Bank of Canada is a financial institution wholly owned by the Government of Canada. BDC plays a leadership role in delivering financial, investment and consulting services to Canadian small business, with a particular focus on the technology and export sectors of the economy. For more information, visit www.bdc.ca.

¶ About Colubris Networks

¶ Colubris Networks is a global provider of intelligent wireless LAN access equipment and management systems for service providers and enterprises. The company's award-winning products deliver seamless, secure access to broadband networks while integrating into existing network infrastructure, security and management systems. Colubris Networks' equipment is deployed by more than 500 organizations worldwide, including Swisscom Eurospot, Telecom Italia, NTT-ME, McGill University, STSN, Connexion by Boeing, the Resort Municipality of Whistler, and three of the world's largest hotel chains. The company's partners include ADC, Alcatel, Juniper Networks, Miltope Corporation, RSA Security, Airwave, Funk Software, iPass, and a worldwide network of value-added-resellers. For more information, visit the company at www.colubris.com, or contact us at info@colubris.com.

¶ All products and services mentioned are trademarks of their respective companies.

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