SpaceVest Capital Leads Series C Investment in Converged Access; Award Winning Converged IP Solutions Provider to Boost Channel, Partner and Product Development with $8 Million Investment

Business Wire, Jan 17, 2006

RESTON, Va. -- SpaceVest Capital, a venture capital firm investing in companies developing advanced technologies for commercial markets, today announced it has led an $8 million Series C financing round in Converged Access Inc., a Billerica, MA-based provider of application performance management solutions for converged Internet Protocol (IP) wide area networks (WANs). Converged Access will use the cash infusion to expand channel and partnership development, as well as advance research and development of its enterprise IP convergence solutions.

This is SpaceVest's first investment in Converged Access, with additional funding from North Atlantic Capital, an investor in established technology companies, and all other current investors participating.

Converged Access' family of products leverages the company's patented QoSWorks(TM) Traffic Management System that enables small- to mid-sized companies, enterprises and remote office users to achieve optimal performance control for all business-critical data applications. In addition, Converged Access' network traffic management solutions enable customers to converge voice, video and data networks seamlessly over a single WAN without compromising the quality of the user experience for voice and video sessions. Converged Access delivers its enterprise IP convergence solutions across banking, healthcare and manufacturing industries with customers such as NBC and Perini Corporation.

"Organizations of any size and IP service providers can deploy new applications while assuring performance and quality of experience to the user over IP networks," stated Ransom Parker, managing director of SpaceVest Capital. "As validated by its growing number of influential strategic partners, Converged Access' solutions are uniquely positioned to ensure the potential of IP network convergence is realized. We are excited to partner with the Converged Access team to bring converged voice, video and data to the mainstream."

Converged Access was founded in 2004 and recently received Internet Telephony magazine's 2005 Product of the Year award for its Converged Access Point product, a comprehensive IP application performance management system that lowers the total cost of ownership for each user and session while assuring quality of service and security are preserved.

"SpaceVest Capital has the management and industry experience that will help us leverage the burgeoning market potential for intelligent application performance control solutions," said Per Suneby, CEO of Converged Access. "As the demand for converged applications increases, our team is uniquely positioned to lead the market in providing performance-assured converged applications for both businesses and service providers."

Existing board member Mark Morrissette, managing director at North Atlantic Capital affirms, "Converged Access is quickly becoming the leading innovator and provider of application performance management solutions for converged IP WANs. The company's commitment to develop powerful, secure products validates its loyalty to its customers and partners. We're excited to continue our board guidance, especially with the welcomed addition of SpaceVest, as Converged Access captures even greater market share within the booming converged IP networks industry."

About Converged Access

Founded in May 2004, Converged Access is a rapidly growing provider of application performance management solutions that assure performance with lowest total cost of ownership for converged IP WANs. With the Converged Access solutions, enterprises and service providers can turn their existing IP (Layer 3) networks into an application-aware (Layer 7) network that offers precise per session, per user guarantees for the most business-critical IP voice, data and video applications. Converged Access solutions have been deployed by hundreds of service provider and enterprise customers around the globe. The company is headquartered in Billerica, Massachusetts. For more information, visit www.convergedaccess.com.

About North Atlantic Capital

North Atlantic Capital invests in established technology and technology-enabled business services companies. Established in 1986, North Atlantic Capital has invested in more than 55 companies throughout the Eastern United States. In addition to growth capital and board level guidance, North Atlantic Capital offers its portfolio companies complimentary strategy consulting services and executive education programs at leading business schools. To learn more about North Atlantic's investment criteria and approach to value creation, please visit www.northatlanticcapital.com.

About SpaceVest Capital

SpaceVest Capital is a proven venture capital firm managing approximately $270 million for global limited partners. For more than a decade, SpaceVest Capital has been investing in companies that leverage a broad range of advanced technologies to provide compelling solutions for diverse, rapidly growing markets. The firm relies on its deep operational understanding to build lasting value and its comprehensive network within national research centers to gain unique access to ground breaking technologies. SpaceVest Capital is a trusted partner of entrepreneurs and global limited partners and has developed strong co-investment relationships with other top venture capital firms and industry leaders. For more information, please visit www.spacevest.com.