Polaris Networks completes $52 Million in Funding

Company receives strong backing for new metro core optical transport switch

SAN JOSE, CALIFORNIA, March 18, 2002 - Polaris Networks, a developer of new generation optical transport switching systems, today announced completion of $52 million in new venture funding. This brings the total funds raised by Polaris Networks to $74 million since its incorporation in June 2000, and represents the largest round raised in metro core network equipment since the start of this year.

The latest funding was led by Advanced Technology Ventures (ATV), with other new equity investors including WK Technology Fund, First Hand Capital Management, Granite Global Ventures, Riverside Management Group, Presidio Venture Partners, Western Technology Investment, Pac-Link Management and KTB Ventures. Previous investors, Redpoint Ventures, Venrock Associates and SToRM Ventures, also participated in this round.

"Completion of this new round of funding confirms that Polaris' solution is solidly on target. Despite very challenging market conditions, we have strong engagement from both service provider customers and the investment community," said Ray Kao, CEO and CTO of Polaris. "With our emphasis on dramatically reducing network costs and operations, we enable carriers to simplify one of the most expensive and complex parts of their networks, while providing a smooth migration to a new generation architecture. The fact that we are on track to deliver a solution that is uniquely positioned with a strong value proposition has made Polaris stand out as an attractive investment. We are pleased to add these new investors to the top-tier venture capitalists already supporting the company."

"After rigorous scrutiny, Polaris has met our criteria of solid customer traction, solid plans for execution, and effective balance between immediate opportunities and the long-term potential in transport switching infrastructures," added Jack Harrington, General Partner of Advanced Technology Ventures and new Polaris board member. "We have strong confidence in the team, the solution, the timing and the space they serve."

"The metro core is emerging as the center of network expansion, requiring systems that optimize bandwidth management and switching that incumbent solutions cannot deliver", emphasized Scott Clavenna, President of PointEast Research. "This has created a significant and lasting opportunity for well-funded startups like Polaris."

Proceeds will be used to fund working capital, marketing and operational expansion. The company is well funded to complete initial product development, upcoming carrier trials, planned technical certifications and commercial delivery.

About Polaris Networks

Polaris Networks develops new generation optical transport switching systems for metro core networks. From day one, its systems combine optical transport with extensive grooming and switching, managed via a GMPLS-based common control plane. PolarisÕ architecture is designed for native support of TDM, cell and packet traffic using a single software-defined switching fabric. This enables carriers to cost-effectively simplify their infrastructures, flexibly scale, and provides a smooth migration to a full multiservice intelligent architecture.

Polaris was founded in June 2000 and is staffed by teams from Alcatel, Cisco, Fujitsu, Nortel, Siemens, Tellabs, AT&T and WorldCom. The company is funded by Redpoint Ventures, Venrock Associates, SToRM Ventures, Advanced Technology Ventures and strategic private investors. For more information about Polaris Networks, please visit www.polarisnetworks.com/ or call 408-281-7466.

For more information on Redpoint Ventures visit: www.redpointventures.com/.

For more information on Venrock Associates visit: www.venrock.com/.

For more information on SToRM Ventures visit: www.stormventures.com/

For more information on Advanced Technology Ventures visit: www.atv-ventures.com/

For more information on Western Technology Investment visit: www.westerntech.com/

For more information on Pac-Link Management visit: www.paclink.com.tw/

For more information on Riverside Management Group visit: www.rmginvestments.com/

For more information on Granite Global Ventures visit: www.ggvc.com/

For more information on Presidio Venture Partners visit: www.presidiovp.com/

For more information on KTB Ventures, LLC visit: www.ktbvc.com/

For more information on First Hand Capital Management visit: www.firsthandfunds.com /

For more information on WK Technology Fund call (408) 773-1177