Telespree Communications Secures $19 Million in Second Round Funding With Lucent Venture Partners as Lead Investor

SAN FRANCISCO, Nov. 13 /PRNewswire/ -- Telespree Communications, the pioneer of a new category for ubiquitous prepaid wireless communications, announced it has received $19 million in second round funding, with Lucent Venture Partners as the lead investor. Hassan Parsa, a partner at Lucent Venture Partners, has been named to Telespree's Board of Directors.

This round of funding brings the total equity capital raised to date by Telespree to $25.5 million, and will enable the company to further its growth and escalate Telespree's continuing technology development efforts and marketing initiatives to bring its new delivery platform for wireless prepaid services to market.

"Lucent Venture Partners is always looking for new companies that can bring innovative and revenue-enhancing solutions to the wireless carrier market,'' said Hassan Parsa, Telespree's newest board member and a partner in Lucent Venture Partners. "We were impressed by Telespree's solid management team and strong business plan, and we look forward to helping them bring their unique prepaid wireless services platform to market.''

Lucent Venture Partners 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 support of Lucent Venture Partners further validates the enormous potential of Telespree's new delivery platform for wireless prepaid solutions,'' said Alon Segal, CEO of Telespree. "Lucent Venture Partners' backing, combined with the existing funds raised from our other premier venture capital partners, will enable us to further refine our innovative service management platform to accomplish our mission of delivering whole new markets for wireless service.''

Additional major investors in this round include San Francisco-based venture capital firm Lightspeed Venture Partners (formerly Weiss Peck & Greer Venture Partners), an early investor in companies Phone.Com, FedEx, and Ciena; Newbury Ventures, a private venture capital partnership focusing on investments in communications and information technology companies; and Koor Venture Capital, the venture arm of Koor Industries, Israel's leading investment holding company.

This latest funding round marks the second significant equity announcement by Telespree within the last 12 months. Telespree previously raised $6 million from several venture capital partners, led by Lightspeed Venture Partners, with additional investments from London Merchant Securities, Thompson Clive International Venture Capital and Stanford University; all of these investors also participated in this second round funding.

Telespree recently named Bjorn Kirchdorfer, a 13-year veteran of the telecom industry, its new vice president of worldwide sales. Prior to joining Telespree, Mr. Kirchdorfer was vice president of one of Ericsson's largest global customer accounts.

"Bjorn's sales and telecom background is a significant addition to Telespree,'' said Segal. "We look forward to leveraging his experience with key global wireless carriers.''

About Telespree Communications

Telespree was founded in January 1999 to pioneer a new category of prepaid wireless communications for the mass market. Telespree's patented new prepaid wireless service delivery platform, incorporating a revolutionary server/handset combination, enables wireless carriers to profitably enter new high-growth consumer markets by reducing their acquisition, activation, distribution, operating and network infrastructure costs. For more information contact at www.telespree.com.