Orthogon Systems Raises $8 Million

Business Wire, Dec 14, 2004

ASHBURTON, U.K. & WALTHAM, Mass. -- Enters joint technology agreement with Motorola (NYSE: MOT) Canopy Wireless Group

Orthogon Systems(TM), a leading provider of carrier-class point-to-point broadband wireless systems, today announced it has raised $8 million in financing to fund the continued high volume commercialization of its OS-Gemini product line around the world. The financing round was led by Motorola Ventures, a new strategic investor, and included existing investors Atlas Venture and The Carlyle Group, as well as new investor Lighthouse Capital Partners. In addition, Orthogon Systems announced today a technology licensing agreement to integrate its technology with Motorola's Canopy product line to provide a high-bandwidth backhaul system that is compatible with the Canopy wireless offerings.

"We are very pleased to have the backing and support of such proven technology and investment organizations. The additional funding and the agreement with Motorola's Canopy Group are validations of both Orthogon's technology and business fortitude," said Phil Bolt, president and CEO of Orthogon Systems. "We continue to meet or exceed milestones in product development and sales; the additional funding enables us to grow the company exponentially and increase market share at an accelerated pace."

Since shipping its OS-Gemini point-to-point broadband wireless system in July 2003, Orthogon Systems has successfully deployed the platform in more than 500 networks for approximately 200 customers in corporate, service provider, government and vertical markets. The OS-Gemini product is distributed by leading distributors and is deployed by blue-chip customers around the world including the U.S. Government, Texas A&M University and the Dubai Municipality. The company has a 70% quarterly revenue growth rate with over 90% of its sales being export shipments from the United Kingdom to more than 50 countries around the globe in the Americas, Europe, Middle East, Africa and Asia-Pacific regions.

The OS-Gemini is the only point-to-point broadband wireless product that can negotiate obstacles and terrain to maintain an interference-free wireless link with carrier-class reliability. The system provides a secure broadband link, connecting separate networks around obstacles such as trees and buildings, over long distances and over large bodies of water. The platform is FCC and ETSI certified, operates in the unlicensed 5.8GHz band, is easy to install, and is self-managing. It delivers payback in less than 12 months to enterprise customers, including corporations, municipalities, universities and hospitals seeking to connect disparate networks; and to wireless ISPs seeking to backhaul data or cellular traffic. The technology has been integrated as a backhaul solution with Motorola's Canopy wireless products.

"The Orthogon team has worked closely with Canopy engineers. Their design achieves an effective high speed backhaul which can be collocated in the same band with Canopy systems," said Tony Kobrinetz, VP & General Manager of the Motorola Canopy Wireless Group. "When integrated with the Canopy product line, this backhaul provides a high capacity data link for very dense multi point subscriber deployments. The design is also consistent with the Canopy user interface for system-wide control compatibility."

McDermott Will and Emery advised Carlyle European Venture Partners, Baker McKenzie advised Motorola, and Bond Pearce advised Orthogon Systems on the financing transaction.

About Orthogon Systems

Orthogon Systems provides the industry's leading carrier-grade point-to-point broadband wireless system, the OS-Gemini Broadband Wireless Ethernet Bridge. Through several innovative technologies and techniques, the company has developed a point-to-point system that connects at high speeds with carrier-grade reliability around obstacles, such as terrain and buildings, over long distances, and over large bodies of water. The OS-Gemini is deployed in over 500 networks worldwide, connecting disparate networks in the corporate, government, healthcare and education marketplaces; and enabling wireless service providers to extend broadband to remote areas and backhaul wireless data traffic efficiently. Orthogon Systems is a privately funded company with headquarters in Ashburton, Devon, United Kingdom and Waltham, Massachusetts, USA. For more information, visit our Web site at www.orthogonsystems.com.