Telelogue Inc. Announces Private Financing From Pequot Capital Management Inc. and Software Licensing Agreement With Telcordia Technologies, Inc

Business Wire, April 20, 2001

Business Editors

ISELIN, N.J.--(BUSINESS WIRE)--April 20, 2001

Telelogue Inc. announced that it has completed its first round of private financing of $3.7M from Pequot Private Equity Group, the venture capital arm of Pequot Capital Management, Inc. and from TI co-investors LLC.

The financing will be used to grow the company and its software assets. Simultaneously, Telelogue has completed a software licensing agreement with Telcordia Technologies, Inc.

"Telelogue products will enable phone carriers to offer to their customers innovative services built on sophisticated dialogues between the users and an automated speech recognition system. First among these services will be a fully automated directory assistance application," said Amir Mane, who left his position as the Director of Advanced Speech Processing in Telcordia to serve as the Chief Executive Officer of Telelogue. "We've identified some interesting opportunities in the applications layer, and we recognized that working as a highly-focused start-up would increase our chances of success." Telelogue will introduce its product on top of commercially available "best in class" technology and will make its contribution in developing sophisticated human-computer dialogues.

In building these services Telelogue will benefit from relevant software assets that Telcordia Technologies, Inc. has developed over the last ten years. Currently these assets are used mostly in the context of Speech Synthesis. Telelogue will apply these assets to the task of Automated Speech Recognition, using them to build advanced speech based services. "It's exciting for me to see technology coming out of the lab and into the marketplace," said Bob Lucky, Corporate Vice-President of Telcordia's Applied Research organization.

"The combination of Pequot's business savvy, Telcordia's intellectual property, and Telelogue's innovation has a great potential," said Martin Hale, Pequot Capital Vice President. Mr. Hale, who sits on Telelogue's board of directors added: "our first challenge is to attract top talent, at a time when such talent is in very high demand."

About Telelogue, Inc.

Launched in October 2000, Telelogue, Inc. is focused on the development of innovative telecommunication services that make use of Automated Speech Recognition. In particular it has developed software that enables automation of directory assistance. Its core team consists of scientists with extensive experience in Speech Technology and in the design of Voice User Interface. Telelogue (www.telelogue.com) is located in Iselin New Jersey.

About Telcordia Technologies

Telcordia Technologies, Inc., an SAIC company, is one of the world's largest providers of operations support systems, network software and consulting and engineering services to the telecommunications industry. A leader in the development of Next Generation Network technologies, Telcordia employs more than 7,000 professionals, and has revenues of more than $1.5 billion. Telcordia (www.telcordia.com) is headquartered in Morristown, New Jersey with offices throughout the United States, Canada, Europe, Central and South America and Asia Pacific.

About Pequot Capital Management, Inc.

Pequot Capital Management, Inc. is a 100% employee-owned, research intensive investment fund firm, headquartered in Westport, Conn., with offices in New York and California, and has more than $10 billion under management. Pequot Private Equity Group is the venture capital arm of Pequot Capital Management. Pequot focuses on the complete life cycle of a company -- from the start-up phase through formative and growth periods, through to more mature stages, when a company is successfully executing its strategy and, potentially, poised to dominate a market.