Ishoni Networks Closes $35 Million in New Financing

Company to Aggressively Expand Marketing and Sales Efforts for the Ishoni Broadband Engine Platform that Enables Residential Gateways and Business IADs

SANTA CLARA, Calif.--(BUSINESS WIRE)--March 5, 2001-- Ishoni Networks, the developer of Broadband Engines for the New Internet(TM), today announced that it has raised approximately $35 million in financing from several leading venture capital firms, investment banks, venture lenders and strategic partners.

meVC Draper Fisher Jurvetson Fund I (NYSE:MVC - news) led the venture funding round, and new investors include Brad Peery Capital, Credit Suisse First Boston, Deutsche Banc Alex Brown, PacRim Venture Partners, SinoStar Capital and several other strategic investors.

All of Ishoni's previous investors -- Bessemer Venture Partners, Information Technology Ventures, INVESCO Private Capital and Lucent Venture Partners -- also participated in the venture-funding round. To date, Ishoni has raised approximately $65 million through three financing rounds.

Ishoni will use the funds to continue and expand development of its broadband-engine technology, which is currently sampling with select customers. The company's proprietary silicon-and-software technology offers manufacturers of broadband CPE -- such as residential gateways and IADs -- an integrated, modular solution ranging from a basic system platform to a complete system solution.

With the Ishoni Broadband Engine(TM), OEMs can more quickly, easily and affordably build IADs and residential gateways that offer voice, data and security services over a single broadband connection. It also gives more flexibility and better management tools for these advanced services.

"The Ishoni technology has already proved its mettle in our labs, and now we are taking that next step to aggressively market our technology,'' said William Lee, president and CEO of Ishoni Networks. "This additional round of funding also allows us to expand our product portfolio, so we can deliver the caliber of broadband engine that OEMs and service providers will be demanding over the next decade -- not just the next year.''

"As a leader in providing broadband communication services, Ishoni Networks allows small businesses and residential customers to combine their voice and data traffic using a single broadband connection,'' said John M. Grillos, chairman, chief executive officer and managing member of the meVC Draper Fisher Jurvetson Fund I. "We believe that Ishoni Networks' strong management team, coupled with key strategic partners and the increasing demand for a more advanced broadband platform, will allow Ishoni to remain a leader in this high-growth market.''

About meVC Draper Fisher Jurvetson Fund I

meVC Draper Fisher Jurvetson Fund I, Inc., (NYSE:MVC - news) an information technology venture capital fund, was formed through a collaborative effort between meVC, a Delaware corporation, and Draper Fisher Jurvetson, a leading venture capital firm. The Fund's investment objective is long-term capital appreciation from venture capital investments in information technology companies, primarily in the Internet, e-commerce, telecommunications, networking, software and information services industries. Additional information on the Fund and its investments may be obtained by writing to meVC Draper Fisher Jurvetson Fund I, Inc., 991 Folsom St., San Francisco, Calif. 94107, Attn: Secretary, via the web at www.meVC.com or by calling 877/474-meVC (6382).

About SinoStar Capital

SinoStar Capital Inc. is one of the fast growing venture management firms in Taiwan. Members of the management team have more than 15-year experience in both hi-tech and venture industries. Key investors of funds under management are mainly from Taiwan's leading financial institutions as well as from Taiwan's well-known hi-tech companies.

About PacRim Venture Partners

PacRim Venture Partners (www.pacrimpartners.com) is a professional venture capital fund with investors from the United States, Taiwan, Hong Kong and Mainland China. Based in Palo Alto, Calif., the firm focuses its investments on early-stage information technology companies in Silicon Valley. In addition to bringing its portfolio companies significant value derived from the team's broad range of expertise in the information technology arena, PacRim Venture Partners strives to assist its portfolio companies through tapping the synergies created by providing access to its strategic partners in Greater China.

About Brad Peery Capital

Brad Peery Capital Inc. was incorporated in November 1990 to provide investment management in the communications industry. Brad Peery Capital's equity funds invest globally in both private and public companies. The funds intend to capitalize on newly emerging investment opportunities, including telephone company privatizations, the growth of wireless communications, communications growth in lesser developed and underdeveloped countries, the growth of international long distance communications, emerging information services and video growth. The investment strategy is similar for investments in both private and publicly traded companies.

About Credit Suisse First Boston

Credit Suisse First Boston (CSFB) is a leading global investment banking firm serving institutional, corporate, government and individual clients. CSFB's businesses include securities underwriting, sales and trading, investment and merchant banking, financial advisory services, investment research, venture capital, correspondent brokerage services and online brokerage services. It operates in over 76 locations across more than 37 countries and 6 continents, and has some 28,000 staff worldwide. The Firm is a business unit of the Zurich based Credit Suisse Group, a leading global financial services company.

About Deutsche Banc Alex Brown

Deutsche Banc Alex. Brown identifies the U.S. investment banking activities of DB Alex. Brown LLC (formerly BT Alex. Brown Inc.) and Deutsche Bank Securities Inc., which are indirect subsidiaries of Deutsche Bank AG. With over DM 953 billion in assets as of March 31, 2000, and approximately 93,000 employees, the new Deutsche Bank offers its clients unparalleled financial services throughout the world. It ranks among the leaders in asset management, capital markets, corporate finance, custody, cash management and private banking. Deutsche Bank is divided into five major business units: Global Corporates and Institutions, Global Technology and Services, Asset Management, Corporates and Real Estate and Private and Retail Banking. Additional information is available at www.alexbrown.db.com.

About Ishoni Networks

Ishoni Networks builds Broadband Engines for the New Internet(TM) that allow OEMs to offer residential and business customers secure voice and Internet services over a single broadband connection. Ishoni offers OEMs a silicon and software solution that allows them to more quickly, more easily and more affordably build broadband gateway products offering voice, data and security services. Ishoni was founded in May 1998 and is headquartered in Santa Clara with a development site in Bangalore, India. Additional information about Ishoni is at www.ishoni.com.