Teem wins EUR10m in 3rd round funding

25 February 2003 -- Teem Photonics, Grenoble, France, has raised EUR10m in third round funding.

Feb 24th, 2003

25 February 2003 -- Teem Photonics, Grenoble, France, has raised EUR10m in third round funding.

Paris-based CDC IXIS Innovation led the round, joined by private investors, Credit Suisse First Boston and existing institutional investors Baker Capital, Hillman Co., INPG Enterprises, Lightspeed Venture Partners and Schneider Electric Ventures.

"Very few companies are succeeding in today's adverse telecommunications environment," said Antoine Kévorkian, CEO Teem Photonics. "The completion of this round signifies a strong vote of confidence in Teem�s roadmap and ability to deliver. We are pleased to have the commitment of CDC IXIS Innovation as well as the continued support of our existing investors."

The company plans to use the funds to push the development of its integrated active and passive product lines for application in new areas, and pursue opportunities arising out of the on-going consolidation within the optical sector. This round brings Teem Photonics� total investment to EUR47.4 million.

"With an experienced management team, a technological platform allowing integration, qualified products, a capacity to deliver and cash, Teem is in a strong position to seize any type of opportunity in the optical sector," said Jean-François Bru, General Partner at CDC IXIS Innovation.

Teem's strength lies in its world-leading proprietary planar technology that enables the manufacture of smaller, more cost-effective, integrated active and passive optical components, which provide the levels of functional complexity optical network systems demand.

"The biggest issue today is the low functional density of optical components and the burden it puts on cost. The industry needs solutions where complete optical functions (amplification, add-drop, transceiver) are produced in one single component or module. For this, Teem's technology is the perfect solution," said Yves Dzialowski, a member of Teem's Board of Directors.

"Teem's Erbium doped glass and array waveguide technologies are the multipurpose loss-less substrates on which to build more complex, integrated functions. The company has already demonstrated a miniature amplifier half the size of a credit card, the EDWA (Erbium Doped Waveguide Amplifier).

More products integrating active and passive multichannel components are needed for low cost deployment of optics to go forward. The current downturn in the industry presents the opportunity to develop the new technologies equipment makers will require as growth resumes," he added.

Faisal Nisar, Partner at Baker Capital said, "We believe that Teem is well positioned to be the beneficiary of the present economic environment due to its unique integration technology and strong financial condition."

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