Transmode closes "growth acceleration" funding round

MARCH 21, 2007 -- The new funds will be used to significantly increase resources across the company, but particularly in the sales and R&D groups, says the company.

MARCH 21, 2007 � Transmode (search for Transmode), provider of multi-reach optical networking equipment, today announced that it has closed a funding round of $12 million to accelerate market penetration and product development.
 
This latest internal round of funding takes Transmode's total investment to date to approximately $93 million and includes all existing major investors in the company. The new funds will be used to significantly increase resources across the company, but particularly in the sales and research & development groups.
 
"Following our excellent growth and performance in 2006, the time is right for Transmode to take advantage of market conditions and to invest to further increase our market share," asserts Rune Hurtig, Transmode's chairman and acting chief executive officer. "As the company is EBITDA positive already, this funding will be purely used to focus additional resources in sales and R&D activities to take advantage of our current strong position."
 
"This internal round includes all our major investors and is also open to employees," adds Mathias Ackermand, Transmode's chief financial officer. "This unusual move shows that Transmode is innovative in more than just technology and also shows the trust in the company's future held by all the team here at Transmode."
 
Transmode recently announced sales growth in 2006 of over 150% from approximately $20 million in 2005 to $54 million in 2006. This increase was the result of both continued growth within existing customer accounts and the addition of a further 40% to the customer base, taking the total number of customers to over 150, say company representatives.
 
In a further announcement today, Transmode announced the appointment of Eva Lindqvist as an additional independent member of the Transmode Board of Directors.
 

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