Xanoptix announces $40 million in second round funding; overall financing raised to $70 million

Xanoptixä, a developer of high-speed optical connection products for next generation data links and optical communication applications, today announced that it has closed its second round of funding, totaling $40 million in new equity financing. The second round of financing was led by MMC Capital, additional key investors were: William Blair Capital Partners, EuclidSR Partners, Envest Entrepreneurial Investments, Optical Partners LLC, and Corning Innovation Ventures. The funds will be used to expand Xanoptix's XTMä series of optical interconnect products and further develop its innovative optically enabled integrated circuit technology.

This funding brings the total capital that has been raised since Xanoptix's inception in March 2000 to $70 million. The company's near term plans include initial shipments of highly intelligent optical interconnect sub-systems, including the industry's highest bandwidth transceiver.

Frank T. Cary, former Chairman and Chief Executive Officer of IBM, and now a member of Xanoptix's Board of Directors added, "Xanoptix is commercializing the next step in electro-optic integration. A strong engineering and management team has worked hard to perfect the company's disruptive technology and to leverage this capability into a groundbreaking series of new products. "

"Xanoptix's ability to raise this amount of money despite current market conditions is a strong validation of our business opportunity," said James Norrod, Chief Executive Officer of Xanoptix. "This substantial financing shows the level of confidence investors and strategic partners have in our cutting edge technology. We were extremely pleased with the timing of the funding. It allows us to bring to market the XTM series of optical transceiver products, which will introduce advanced product features such as significantly increased scalability, speed, and reliability."

Industry experts point out that electro-optic devices play an important role in the technology development across a wide span of industries. "We expect optical interconnects to become key enablers in high performance computing, data storage, and telecommunications equipment," remarked Jeff Montgomery, Chairman of Electronicast, a telecommunications analyst firm. "A strong indicator for this trend is to see companies with advanced product offerings like Xanoptix secure a substantial amount of funding."

Xanoptix

Xanoptix is dedicated to revolutionizing both the electronics and optics industries through the combination of traditional electronic integrated circuits and high performance optics. Utilizing this optically enabled integrated circuit technology, Xanoptix designs and manufactures optical connection products for next generation data links and optical communication applications. Founded by experts in the field of optoelectronics, Xanoptix offers flexible networking and processing solutions for data communications, telecommunications, and computing markets. Xanoptix is headquartered in Merrimack, NH, where the company performs all product design, development, and manufacturing. For more information on Xanoptix technology, please visit www.xanoptix.com or call toll-free (866)-XANOPTIX.

Xanoptix, Inc., 10 Al Paul Lane, Merrimack, NH 03054. Tel: 603-546-0622; Fax: 603-546-0010.