Maxspeed Receives $14.2 Million in Mezzanine Financing

Business Wire, Feb 29, 2000

Business Editors

PALO ALTO, Calif.--(BUSINESS WIRE)--Feb. 29, 2000

Funding from Westbury, Walden, Champion and Other VCs Enable Expanded

Development, Marketing and Sales of Maxspeed Linux Desktop Devices

Maxspeed Corp., the leader in Linux desktop devices Tuesday announced it has received $14.2 million in mezzanine venture financing from Westbury Equity Partners, Walden International Investment Group, (WIIG), Champion Consulting Group, (CCG), and other investors.

Maxspeed's MaxStation, MaxTerm UT and One Station desktop devices allow multiple users to share one Linux server eliminating the need for PCs on the desktop. These devices offer dramatic cost savings with greatly improved reliability, simplicity, enhanced performance, higher speed and ease of installation versus Wintel-based PC networks.

"Westbury strongly believes Linux technology will be a dynamic growth sector globally and that Maxspeed, as the early market driver in Linux desktop devices, is positioned for future growth," said James Schubauer, president, Westbury Equity Partners. "Maxspeed's superior technology, market leadership and strong, proven management make them an attractive business partner."

"Linux offers substantial operational and economic advantages compared to the Wintel-PC environment and is a compelling investment opportunity," said Lip-Bu Tan, managing general partner, Walden International Investment Group.

"Maxspeed is especially interesting because its desktop devices provide critical hardware solutions, filling a previous need and opening the door for Linux to become a powerful business and consumer network solution. We look forward to continuing a long and rewarding relationship with Maxspeed."

Private equity participants in previous Maxspeed investment rounds include Champion Consulting Group, Walden International and The Genesis Group. Prior to this round, the company has raised $12.5 million in private equity capital.

"We are especially pleased with our series C investor group including Westbury, Walden and Champion," said Wei Ching, president and chief executive officer of Maxspeed.

"This capital infusion will provide flexibility to significantly expand our sales and marketing infrastructure, boost new product development efforts and provide working capital to meet the explosive demand for Maxspeed desktop devices. We are glad that these preeminent venture capital firms share our vision and enthusiasm."

About the Lead Mezzanine Investors

Westbury Equity Partners is a private equity investment partnership providing capital for privately-owned emerging growth companies and select management buyout opportunities in the US. Founded in 1994 and based in Westbury Long Island, the firm's partners have over 60 years of experience providing capital to growing companies.

Walden International Investment Group, headquartered in San Francisco, is an international venture capital group, managing funds in excess of $850 million. WIIG has invested in more than 200 companies in Asia-Pacific and the U.S. and is affiliated with the Walden Group with offices in the U.S. and Israel.

Champion International Consulting Group is a professional team with in-depth expertise in technology, management and financing. Founded in 1990, the company is headquartered in Taipei, Taiwan and provides superior investment opportunities utilizing international networks. CCG president, Dr. Ding-Hua Hu is also chairman of Maxspeed's board of directors.

About Maxspeed

Venture-financed Maxspeed is a leader in the emerging Linux desktop device market, serving replicated sites of large enterprises, point-of-sale and small businesses.

Its MaxStation for Linux desktop solutions combine attractive cost of ownership with speed, simplicity and ease-of-use unmatched by today's PCs. Palo Alto-based Maxspeed has been selling thin-client systems to well-known businesses nationally for more than ten years and can be accessed at www.maxspeed.com.