PhotonEx raises $90 million in third round financing

Oct. 17, 2001--PhotonEx Corp., a developer of 40 Gb/s and faster smart photonic systems for long haul and ultra long haul networks, announced it received an additional $90 million in equity financing from global investors.

PhotonEx Corp., a developer of 40 Gb/s and faster smart photonic systems for long haul and ultra long haul networks, announced it received an additional $90 million in equity financing from global investors. This third round of financing brings PhotonEx's cumulative financing to $178 million.

The Waltham, MA office of UK-based 3i led the Series C investment round with new equity participation from Axxon Capital LP, Boston Millennia Partners, Castile Ventures and JP Morgan Investment Management. All previous investors, including Matrix Partners, North Bridge Venture Partners, Oak Investment Partners, Essex Investment Management, Silicon Valley BancVentures LP, Intel Capital and the Photonics Fund, also participated in the round.

The investment round provides PhotonEx with the funds needed to continue executing on its timeline for development and customer-facing operations. The financing will support operations through late 2003, well into the company's planned revenue and sales ramp period. PhotonEx will use the infusion to drive commercialization of a deployable 40 Gb/s long haul transport technology through the expansion of its sales and support organizations and the appropriate scaling of its development and manufacturing operations.

Optimized to address service providers' top line and bottom line imperatives, PhotonEx's 40 Gb/s smart photonic systems dispense with the distance vs. capacity trade off. Combining pioneering optical subsystems and innovative system software, PhotonEx core optical systems maximize revenue through the efficient delivery of capacity and speed. PhotonEx systems also minimize capital and operational network costs by supporting high-capacity long-reach networks using fewer systems and wavelengths. Enabling 40 Gb/s services using current components on fiber further enables service providers to maximize their ROI.

With the completion of this round, Nelson Stacks of 3i has joined PhotonEx' board of directors. Listed on the London Stock Exchange and the FTSE100, 3i is an international venture capital firm investing in businesses across three continents through local investment teams in Europe, Asia Pacific and the USA. To date, 3i has invested over $US 19 billion (£13.5 billion), leveraging its worldwide presence to add value to its portfolio companies. At 3i, Mr. Stacks focuses on all aspects of the telecommunications industry.

About PhotonEx Corporation:

Founded in September 1999, PhotonEx Corp. develops 40 Gb/s network-wide smart photonic systems. For more information, visit www.photonex.com.

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