Tropic Networks Inc.

Tropic Networks Inc.

May 24, 2005 11:00 ET

Additional Capital Solidifies Tropic Networks Financial Infrastructure

OTTAWA, CANADA--(CCNMatthews - May 24, 2005) -

Funding will strengthen Tropic's ability to work with its tier-1 partners to deliver market leading optical solutions to its expanding customer base

Tropic Networks Inc., a supplier of regional and metro-area optical networking equipment today announced it has secured an additional $33 million US in equity and $15 million US in operating capital financing. JPMorgan Partners, Narra Venture Capital, Dynamic Venture Opportunities Fund, CrossBridge Partners Fund, VentureLink Fund, and The Bank of Nova Scotia along with Tropic's current list of investors participated in this round. JPMorgan Partners is the lead investor for this round of financing. The operating capital facility was provided by Silicon Valley Bank.

"We are pleased to have this level of confidence in the company from the financial community," said Kevin Rankin, Chief Executive Officer, Tropic Networks. "The additional funding combined with the operating capital facility provides the framework required to respond to the growing demand for our solutions from our tier-1 partners and customers."

Tropic Networks delivers next-generation reconfigurable OADM (ROADM) solutions that enable service providers to build cost-effective, flexible and intelligent core optical networks on which to deliver data, voice and video services. The centerpiece of the Tropic solution is the reconfigurable TRX-24000 metro-DWDM transport platform, integrated with Wavelength Tracker optical layer intelligence technology. Wavelength Tracker technology delivers SONET-like performance management, wavelength identity, path trace, automated power management, sectionalization and fault isolation to the optical layer.

The company has been shipping generally available products for revenue since early 2004. Over the last year, Tropic has secured channel partners in key markets, experienced real-world deployments and steady growth.

"The Tropic team has successfully combined market vision with innovative technologies to deliver a highly differentiated optical platform that enhances the capabilities of its customers' networks," said Jeff Logan, Principal, JPMorgan Partners. "Tropic Networks has emerged as a forerunner in the growing metro optical networking space and is expanding its market opportunity by providing solutions to both the telecom and cable sectors, for high bandwidth IP service delivery including Video on Demand and IPTV."

About Tropic Networks

Founded to meet the challenges specific to building simple, manageable and flexible metro-regional optical transport infrastructures, Tropic Networks offers a new generation of static and reconfigurable OADM/DWDM solutions that help service providers minimize costs and maximize profits. The Tropic Networks TRX-24000 metro-regional DWDM platform integrated with patented Wavelength Tracker, advanced optical layer management technology, allows service providers to grow, simplify and manage their optical infrastructures, while leveraging existing network assets. Headquartered in Ottawa, Canada, Tropic was founded in May 2000. The company is privately held and venture capital backed.

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