Cable Technology Leader Proxilliant Systems Receives Venture Capital Funding for Global Expansion

Business Wire, May 25, 2005

BALA CYNWYD, Pa. & STOCKHOLM, Sweden -- Proxilliant Systems Corp., formerly SpaceNet Communications AB, today announced the Series A investment of EUR 2 million from leading Nordic venture capitals Creandum and Northzone Ventures.

Proxilliant gives cable operators a powerful Dynamic Ingress Blocking (DIB) tool to improve scalability, capacity, service quality and profitability of broadband networks. Proxilliant's technology helps to accelerate the growth and success of new triple play services, including time sensitive IP applications such as VoIP and real-time streaming TV.

"The funding and valuable support of the venture capitals enables us to expand globally and fulfill strong customer demands for our products," said Proxilliant Founder and CEO Arne Ljungdahl. "We are able to build on our successful worldwide deployments with operators in Canada, Sweden, Switzerland, Austria, England, Portugal, Japan and Korea, and to expand our current trials with leading U.S. operators and in the Asia Pacific market."

"Broadband cable has been tremendously successful and with that growth comes the need to improve scalability, capacity and service quality, especially as voice and video services over IP are introduced. Proxilliant's products enable these rollouts very cost effectively, and at the same time save on maintenance and operational costs," said Gregers Kronborg, partner in Northzone Ventures.

As ingress problems mount due to the increasing number of homes connecting to two-way services, demand is growing for solutions that allow more homes to be connected faster. Proxilliant's patented technology pinpoints and reduces ingress significantly. This greatly improves capacity and service quality and saves resources from the cumbersome daily task of hunting and fighting ingress.

"Proxilliant is one of the most exciting expansion stage technology companies we have seen in Scandinavia in the last two years. Proxilliant's technology has been verified by leading MSOs and cable companies worldwide," said Martin Hauge, partner in Creandum. "With some of the largest cable operators in Europe and North America having started installation projects, Proxilliant is well positioned for continued rapid growth."