Boca Raton, FL and Herzliya, Israel – September 19, 2005— Axerra Networks, “The Pseudo-Wire Company™” and the leading provider of circuit emulation and service emulation solutions over packet access networks, announced the completion of a $16.25 million Round C of private financing. The latest round was led by Carmel Ventures and included participation from existing investors TLcom Capital Partners, HarbourVest, and the Zisapel brothers.

In addition, Shlomo Dovrat, General Partner and Founder of Carmel Ventures has joined Axerra Networks’ Board of Directors. Mr. Dovrat has been a leading figure in the Israeli high-tech industry for over 20 years, including CEO and Chairman positions at several leading high-tech companies. He is currently the Chairman of ECI Telecom Ltd. (NASDAQ: ECIL), a global provider of advanced telecommunications solutions to major carriers and service providers, and Unipier, a leading provider of innovative software products.

“ We are extremely pleased to have the support of Carmel Ventures, a highly-regarded top-tier fund, and to welcome Shlomo Dovrat to our Board of Directors,” said Gil Biran, Founder, President, and CEO of Axerra Networks. “Carmel’s hands-on investment model and global network coupled with Shlomo’s extensive expertise in telecommunications and outstanding reputation worldwide will be invaluable to us as we expand our leadership position in the industry.”

The latest funding reflects the significant business opportunities presented by Axerra Networks’ Pseudo-Wire technology and will enable the company to continue the growth of its production, sales, and support efforts. Axerra Networks’ Pseudo-Wire solutions enable mobile wireless operators, cable operators, competitive access providers, and incumbent carriers to extend IP plus legacy data and voice services in native format over Ethernet, IP, and MPLS networks. Axerra Networks’ family of AXN Pseudo-Wire Gateways and Access Devices™ are now tested and deployed on four continents.

“ Through its advanced Pseudo-Wire technology, strong leadership, and strategic vision, Axerra Networks is well-positioned for significant growth,” said Shlomo Dovrat of Carmel Ventures. “Axerra is the only company that is already delivering both small, low-cost access solutions and redundant, high-density, carrier-class solutions that offer compelling benefits to all kinds of service providers. Their longstanding vision for Pseudo-Wires continues to gain widespread recognition and acceptance, and their technology is unsurpassed in the industry, paving the way for accelerated expansion and continued success.”

About Carmel Ventures
Founded in 2000 by pioneers and leaders of the Israeli high tech industry, Carmel Ventures is one of Israel’s leading software and communications focused funds with $372 million under management. Led by former entrepreneurs and executives of the software, communications and investment industries, Carmel provides active, hands-on support to its Israeli, European and US portfolio of companies. Carmel headquartered in Herzliya, Israel enjoys a worldwide network of industry, strategic and investment resources. Carmel provides significant capital and support through the growth cycle of its portfolio companies and is recognized as a true company building fund in Israel. For more information, please visit www.carmelventures.com.

About HarbourVest Partners
HarbourVest Partners, LLC is an independent global private equity investment firm and registered investment advisor, providing vehicles for institutional investors to invest in the venture capital and buyout markets in the U.S., Europe, and elsewhere through primary partnerships, secondary purchases, and direct investments. HarbourVest and its subsidiaries have 137 employees, including 54 investment professionals, deployed in Boston, London, and Hong Kong. In 25 years of investing in private equity, the team has committed more than $10.8 billion to newly formed funds, representing relationships with 200 private equity managers. The team has also completed over $3.4 billion in purchases of 460 secondary partnership interests, and invested $2.2 billion directly in operating companies. The firm's clients consist of 240 institutional investors, including pension funds, endowments, foundations, and financial institutions, throughout the U.S., Canada, Europe, Australia, and Japan. To learn more about HarbourVest visit www.harbourvest.com.

About TLcom Capital Partners
TLcom Capital Partners Limited, established in 1999, is a London-based venture capital firm investing in communication technologies and services companies. TLcom manages Euro 185M for investments in European and US-Israeli start-ups. TLcom Capital Partners is FSA registered and regulated. For more information, visit http://www.tlcom.co.uk.

About Axerra Networks
Axerra Networks is the leading provider of circuit emulation and service emulation solutions over packet access networks. Axerra’s Pseudo-Wire solutions enable mobile wireless operators, cable operators, competitive service providers, and incumbent carriers to extend IP plus legacy data and voice services in native format over Ethernet, IP, and MPLS networks. The result is greater operational efficiency, new revenue opportunities, and a smooth migration strategy to a single converged network, without stranding any revenue streams from profitable legacy services. With Axerra’s Pseudo-Wire solutions, service providers can convert any packet access network (Carrier Ethernet, broadband wireless including WiMAX, cable HFC, xDSL, etc.) into a full-service alternative to TDM access. For more information, please visit: www.axerra.com.

##

 Back to Press Releases