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Redline Communications Secures US$18 Million in VC Funding



Matrix Partners and U.S. Venture Partners Share Investment, Join Redline Board


TORONTO-/July 26, 2004 - Wi-Fi Technology News/-Redline Communications Inc., a leading provider of standards-based broadband wireless equipment, today announced that it has secured US$18 million in financing from Boston-based Matrix Partners and Silicon Valley-based U.S. Venture Partners (USVP).

The financing will support the Company?s aggressive international business development and sales and marketing initiatives. It will enable Redline to enhance its research and development, and ensure that the necessary resources are in place to expand its customer trials with large international carriers.


?The financing we have received will enable us to capitalize on our first mover advantage in the 802.16 and WiMAX space,? said Majed Sifri, president and CEO of Redline Communications. ?We have already demonstrated our leadership in bringing OFDM technology to the forefront of this burgeoning market with our 802.16 products. With this financing in place, we can continue to lead the market with innovative products.?

According to Skylight Research, the current market for Broadband Wireless Access equipment is estimated at $300 million, and is expected to grow to over $2.8 billion by 2008. Redline Communications develops standards-based products for this market, providing customers with a cost effective solution for backhaul, access and private network applications. According to Sifri, ?Redline leads the industry in performance, ease of installation and support, providing unmatched, high capacity, non-line-of-sight capabilities with proven performance, reliability and security.?

In conjunction with the funding, Redline Communications has also appointed Edgar Masri, General Partner at Matrix Partners, and Tim Connors, General Partner at USVP to its board of directors. ?Both Masri and Connors are highly regarded in the venture capital community, and will prove to be valuable additions to our board of directors,? said Sifri.


?We are investing in an organization that is delivering tremendous return on investment for its customers and has an impressive pipeline that clearly demonstrates that their message is resonating with carriers and VARs,? explained Masri. ?Redline has demonstrated that they are clearly ahead in both technology leadership and customer traction with its 802.16-based solutions.? Redline Communications represents the first investment into a WiMAX Forum? member company for both Matrix Partners and USVP.

?While most talk about the promising future of 802.16 and WiMAX, Redline is already delivering on it,? said Tim Connors, general partner at USVP. ?Their innovative solution has already proven to significantly improve the economics for both large and small carriers around the globe".


About Redline Communications
Redline Communications is a technology leader in the design and manufacture of standards-based broadband wireless access solutions. Using industry leading OFDM technologies, Redline?s award-winning products provide unmatched high capacity and non-line-of-sight capabilities with proven performance, reliability and security. Ideal for a variety of access, backhaul and private network applications, Redline products meet the needs of carriers, service providers and enterprises worldwide. Redline is a principal member of the WiMAX Forum?, and was first in the world to market an 802.16 compliant product. Redline has over 5,000 installations in 60 countries across 6 continents through a global distribution network of 80+ partners. For more information, visit http://www.redlinecommunications.com.



About Matrix Partners
Since its inception in 1977, Matrix Partners has been dedicated to helping outstanding entrepreneurs build successful companies. Our mission is helping our founders and management teams build the next great companies of tomorrow and often entire new industries. We bring the collective resources of the Partnership to each investment, giving you, the entrepreneur, access to all of our experience. Our approach sets us apart from most other venture firms and is the reason why so many of our successful entrepreneurs, when starting their next company, return to Matrix first. This approach has propelled Matrix Partners to be the most successful venture firm in the United States during the last ten years with its last three partnerships having record-setting returns. For more information, visit http://www.matrixpartners.com.



About U.S. Venture Partners
U.S. Venture Partners (USVP) is a leading Silicon Valley-based venture capital firm dedicated to helping entrepreneurs build world-class companies that are leaders in their industry. USVP focuses on early stage opportunities in sectors where the Partners have the domain expertise, operating experience and network of relationships to provide meaningful contribution to the success of the enterprise. These sectors include digital communications and networking systems, Internet and eCommmerce infrastructure, semiconductors and optical components, enterprise and technical software, and medical devices and biopharmaceuticals. Since its inception in 1981, USVP has raised more than $2.5 billion in eight funds, including a $1 billion fund that closed in January 2001. For more information, visit http://www.usvp.com.