CyOptics Inc. Raises $57M From Cisco, Corning, Intel and Vitesse

Source: CyOptics

Original investors and additional new investors join in funding active optical component manufacturer

Burlington, MA. CyOptics Inc., a leading developer of optoelectronic transmission components for 40Gbps and ultra-long-haul transmission, today announced that it had raised an additional $57M of equity financing, bringing its total equity financing since its inception to over $77M. The monies will be used to fund product development, as well as to accelerate expansion of the company s manufacturing facilities and customer support infrastructure.

Cisco Systems led the round, which also included Corning Incorporated, Intel Capital, and Vitesse Semiconductor. All CyOptics original investors, including Jerusalem Venture Partners, SCD, Soros Private Equity Partners LLC, Sprout Group, Innovacom, Natexis, and Eurofund, participated as well.

"I am proud to have this superb group of corporate investors, each a leader in its market, participate in this round of equity financing. We expect these companies to provide tremendous added value as business partners or technology advisors." said CyOptics president, Eran Yarkoni. "Their participation in this round is of great strategic significance for CyOptics", added Erel Margalit, chairman of the board of CyOptics, and General Partner of Jerusalem Venture Partners, the seed investor in the company.

"We are excited about the potential this technology offers transmission systems as they move to higher data rates, longer distances, increased functionality, and lower costs", stated Wendell Weeks, executive vice president, optical communications at Corning. "We see CyOptics products and direction as complementing our efforts in new optical fibers, transmission lasers and receivers, and pump lasers. As a leading optical layer company, Corning is delighted to be a partner in this funding round."

"The Internet continues to grow at an exponential rate, and innovations such as 40Gbps optical components and components for ultra-long haul transmission will be a necessary development to keep pace with this growth", commented Tom Willis, director of optical investments at Intel Capital. "CyOptics is active at the fore front of developing these components using new materials such as Indium Phosphide."

We are pleased to participate in this funding round" added Lou Tomasetta, President and CEO of Vitesse Semiconductor ". CyOptics products address a market of vital interest to Vitesse, namely, 40Gbps optical transmission, and their optical components are synergistic with Vitesse s high performance semiconductor devices."

About CyOptics

CyOptics was founded in early 1999, and is headed by veterans of Lucent, Intel, and Lasertron. It has a superlative technical team, including leaders in the field of Indium Phosphide optical component development and manufacturing, and optoelectronic device packaging. The company is headquartered in Burlington, MA, with offices in Los Angeles, California, and research and development facilities in Israel. CyOptics has full optoelectronic component manufacturing capability, including Indium Phosphide wafer fabrication, regrowth, and characterization, as well as microelectronic packaging, test & qualification facilities. Visit the website at www.cyoptics.com

About Cisco Systems

Cisco Systems is the worldwide leader in networking for the Internet. Cisco provides end-to-end networking solutions that customers use to build a unified information infrastructure of their own, or to connect to someone else s network. www.cisco.com

About Intel Capital

Intel Capital, Intel s strategic investment program, focuses on making equity investments and acquisitions to grow the Internet economy, including Internet infrastucture, content and services in support of Intel s strategic interests. For more information, visit www.intel.com/capital

About Corning Incorporated

Established in 1851, Corning Incorporated creates leading-edge technologies for the fastest-growing markets of the world s economy. Corning manufactures optical fiber, cable and photonic products for the telecommunications industry; and high-performance displays and components for television and other communications-related industries. The company also uses advanced materials to manufacture products for scientific, semiconductor and environmental markets. Corning s revenues in 1999 were $4.7 billion. www.corning.com

About Vitesse Semiconductor

Vitesse Semiconductor Corporation is the leading designer and supplier of innovative, high performance semiconductors utilizing state-of-the-art processes for the manufacturers of next generation DWDM and optical networking communications equipment. Vitesse also develops storage area networking ICs and enclosure management products that monitor and communicate critical reliability and availability information. The Company s products address the needs of Core, Access, Optical and Enterprise network equipment manufacturers who demand a combination of high speed, high complexity and low power dissipation. Vitesse is headquartered in Camarillo, California, and operates two fabrication facilities in Camarillo and Colorado Springs. www.vitesse.com

Editorial Contacts:

Bruce Manning AccessMillenium 3, Inc. 562-592-8086 bruce@access-pr.com

Hava Volterra CyOptics Inc. 310-914-0155 hvolterra@cyoptics.com