Cereva Networks Closes Over $50m in New Funding

Business Wire, Sept 26, 2001

Business/Technology Editors

MARLBOROUGH, Mass.--(BUSINESS WIRE)--Sept. 26, 2001

Cereva Networks Inc., developer of Internet Storage systems for service providers and large enterprises, today announced that it has secured approximately $51 million in funding from the issuance of shares of its Series E Convertible Preferred Stock.

Participating investors in the round include Matrix Partners, North Bridge Venture Partners, Oak Investment Partners, Goldman Sachs, Intel Corporation, Worldview Technology Partners and Sumitomo Corporation, all earlier-round investors in Cereva. Cereva will use the funding as working capital and to complete its beta trials, as well as to expand sales and marketing and all related programs associated with the commencement of product shipment.

"We're particularly encouraged by the strong, sustained support shown by our investors, said Mahesh N. Ganmukhi, president and CEO of Cereva. "In light of the current business climate, we believe their continued commitment and their level of investment speak extraordinarily highly of Cereva and the company's long-term potential."

"Our product development is accelerating nicely, bolstered in part by this round of financing," continued Ganmukhi. "We're conducting beta trials of our Internet Storage systems with a variety of companies and organizations in both the private and public sectors, and we anticipate first customer shipments shortly," he added.

About Cereva Networks

Cereva Networks Inc., founded in 1998 and headquartered in Marlborough, Mass., is delivering the industry's first Internet Storage system to enable service providers and large enterprises to greatly accelerate content delivery while simplifying data center infrastructures. Cereva's investors include Matrix Partners, North Bridge Venture Partners, Oak Investment Partners, Goldman Sachs (NYSE: GS), Intel Corporation (NASDAQ: INTC), Global Crossing Ventures, Inc., Worldview Technology Partners, Comdisco Ventures (NYSE: CDO), and Sumitomo Corporation. For more information, visit Cereva's Web site at www.cereva.com.

Cereva, Cereva Networks, the `VA' logo and The Internet Storage People are trademarks of Cereva Networks Inc. All other trademarks referenced in this release are the property of their respective owners.