CALY NETWORKS RECEIVES $31 MILLION IN SECOND ROUND OF FUNDING

From Goldman Sachs , Sprout, Siemens, and others

SUNNYVALE, Calif., April 12, 2000 - CALY Networks of Sunnyvale, California and its subsidiary CALY Networks Europe Limited of Gerrards Cross, U.K., today announced it has received $31 million, in its second round of financing. The Goldman Sachs Group, Inc. and its affiliates led the round, followed by Sprout Venture Capital, Siemens Mustang Ventures, and Pacific Technology Investment.

The second-round investors have joined ComVentures, Lucent Venture Partners, Nokia Ventures, and Worldview Technology Partners, to create a first-class investors team that will back and support CALY Networks strategically and financially. "We are pleased to have joined by such a reputable and strategic team of supporters" said Dr. Josef Berger, President and CEO, CALY Networks. "The combination of solid financial and strategic investors will lend CALY a competitive edge and solid backing".

"Broadband wireless access is emerging as one of the hottest areas of communications networking, and CALY's solutions provide wireless carriers with an effective and compelling means to convert their wireless spectrum investments into revenue generating services, while delivering to their customers high bandwidth, high value services," said Joe DiSabato of Goldman Sachs.

About CALY Networks

Founded in 1998, CALY Networks addresses the high-speed wireless Internet market segment. By integrating advanced wireless transmission with innovative networking technology, CALY is redefining the market for broadband access, enabling the New World Service Providers to deliver the Business Internet at breakthrough economics. CALY is developing strategic alliances with leading telecommunications systems integrators to provide total solutions for its customer base. CALY has offices in Sunnyvale, California, and in Gerrards Cross, United Kingdom.

About Nokia Ventures

Based in Menlo Park, Nokia Ventures L.P. is a US$100 million venture capital fund formed in 1998 to invest in early stage, high-growth companies in the areas of e-commerce, information technology and communications. Nokia Corporation has invested in the fund with the express intent to gain exposure to new markets, business models and technologies beyond the reach of Nokia's current business unit strategies. Nokia Ventures seeks partnerships with leading-edge companies attacking high-growth market opportunities that will benefit from the combined resources, experience and contacts of the Nokia Ventures team and from the association with a world-class brand.

About Lucent Venture Partners

Lucent Venture Partners, LLC. is a wholly owned venture capital subsidiary of Lucent Technologies with offices in Palo Alto, California and Murray Hill, New Jersey. Formed in 1998, the group invests in early-stage technology companies in high-growth communications areas such as optical, data and wireless networking, semiconductors, communications software, professional services and e-commerce. The current fund, LVP II, was capitalized in January 2000 at $150 million; the original fund, LVP I, was capitalized in February 1998 at $100 million and is now fully committed. LVP brings the unique ability to facilitate business relationships between our portfolio companies and Lucent's operating units, when appropriate. More information about Lucent Venture Partners is available at http://www.luvp.com/ .

About Siemens Mustang Ventures

Siemens Mustang Ventures is the venture capital group of Siemens Information and Communication Networks, a global leader in communications and information technology. Located in Santa Clara, Calif., and Munich, Germany, the company targets innovative technologies with world-class potential. More information is available at http://www.mustangventures.com.

About Goldman Sachs

Goldman Sachs is a leading global investment banking and securities firm, providing a full range of investing, advisory and financing services worldwide to a substantial and diversified client base, which includes corporations, financial institutions, governments and high net worth individuals. Founded in 1869, it is one of the oldest and largest investment banking firms. The Firm is headquartered in New York and maintains offices in London, Frankfurt, Tokyo, Hong Kong and other major financial centers around the world.

About Sprout

The Sprout Group is one of the oldest and largest venture capital firms in the US. Since 1969, Sprout has helped finance more than 300 companies with combined sales exceeding $40 billion. With offices in Menlo Park, New York, and Chicago, Sprout focuses on helping to grow technology companies in communications, e-commerce, and e-healthcare. Active investments include Astral Point, Avici, Blue292, CheMatch, Corvia Networks, eHealthInsurance.com, Ennovate Networks, Family Education Network, FogDog (NASDAQ: FOGD), GlobeSpan (NASDAQ: GSPN), GroceryWorks.com, Healtheon/WebMD (NASDAQ: HLTH), iAsiaWorks, MarketFirst, Mondera.com, mySimon (acquired by CNET), NetEffect, Netcore Systems (acquired by Tellabs), NetLibrary, Paradyne (NASDAQ: PDYN), Perfecto Technologies, Quintus (NASDAQ: QNTS), Rhythms NetConnections (NASDAQ: RTHM), Rotor Communications, Silicon Access Technology, Tavolo, Torrent Networking Technologies (acquired by Ericsson), and Worldwide Fiber. For further information on the Sprout Group, please visit our web site at http://www.sproutgroup.com.

About Pacific Technology Investment (PTI)

Pacific Technology Investment(PTI) is a venture capital fund with offices in San Jose, California and Taipei, Taiwan. Led by C.S. Ho, previously founder and Vice Chairman of Mitac Group, PTI invests in networking communications, wireless, Internet, semiconductors and digital consumer space. The uniqueness of PTI is to create higher value to US leading edge technologies companies by connecting Asia's customers and Asia's vendors with high quality, high efficiency manufacturing capabilities, time to volume capabilities. Some of PTI portfolio companies include Netiq, Sipix, Caly Networks, Airflash, Cybird, Sina.com, Chinakids.com., Silicon Motion Inc., Gamers.com, etc. More information about PTI is available at http://www.pta.com.tw

About ComVenture

ComVentures is a preeminent venture capital firm that invests exclusively in early-stage communications and Internet companies. Some of the firm's current portfolio companies include AduroNet, Arbinet, Brix Networks, Broadview, Centerpoint Broadband, Chromatis, CoSine, DemandVideo, Dynamicsoft, Flashcom, FootageNow, Littlefeet, Rangestar, Sitesmith, Tollbridge, Universal Access (NASDAQ:UAXS), and Zantaz, among others. The partners' investment record-unsurpassed in the industry-reflects the invaluable insight and unmatched experience they bring to their portfolio companies. Based in Palo Alto, California, ComVentures currently manages funds valued at more than $600 million. For more information, please visit the company website at http://www.comven.com.

About WorldView

Worldview Technology Partners is an established venture capital firm with a strong track record of investing in and helping build leading U.S. information technology companies. The Company adds significant value to its portfolio companies through active participation and a proven ability to help US entrepreneurs successfully expand their businesses into the Asia-Pacific region. Worldview's experienced team has earned a reputation for investing in winning companies over the past eight years. For more information, please visit the company website at http://www.worldview.com.