FOR IMEDIATE RELEASE
NETWORKS RAISES $23 MILLION IN FINANCING.
Charles River Ventures Leads Round;
Menlo Ventures Joins Prestigious Group of Investors
Waltham, Mass., February 5, 2002 -- Sitara Networks,
Inc., the leading provider of QoS (Quality of Service) solutions
for managing and optimizing application performance across networks,
today announced the completion of a $23 million financing round
led by Charles River Ventures. Menlo Ventures joined the prestigious
list of investors, which includes OneLiberty Ventures, New Enterprise
Associates, Oak Hill Venture Partners, Prism Venture Partners, Siemens,
Van Wagoner Capital Management, MFS Investment Management, Deutsche
Banc Alex. Brown, SI Ventures and Thomas Weisel Partners.
With the new financing, Sitara will continue to invest in new product
development, sales and marketing to further the adoption of its
QoS solutions, which enable companies to deploy and enforce policies
to improve the performance of applications over wide area networks.
The latest round of financing is expected to fund the company through
cash flow positive which is anticipated to occur later this year,
based on the companys current plans and projections.
At a time when venture capitalists are very selective about
their investments, we are fortunate to be recognized by world-class
investors as a company that will succeed in the current climate,
said Malik Khan, CEO and founder of Sitara. Todays announcement
allows us to build on recent successes, including nearly quadrupling
our revenues year-over-year in 2001 and the increased acceptance
of QoS. The additional funding allows us to strengthen our cash
position, and fund our future growth to meet our goal of reaching
breakeven this year.
Sitara's business model continues to be compelling in its
ability to deliver on plan. Companies are realizing the benefits
of quality of service for leveraging their existing infrastructures
and as a result, we have seen Sitara's deal sizes increase,
said Mike Zak, general partner at Charles River Ventures. Moving
forward, Sitara is well positioned to take advantage of the growing
QoS market by demonstrating real business value to its customers.
We decided to join this list of investors because of the strength
of Sitaras leadership and technology, said Mark Siegel,
managing director at Menlo Ventures. Quality of Service is
a key market for us to invest in as more companies are investigating
ways to manage converged networks. We look forward to working alongside
Sitaras team to help them reach their full potential.
About Sitara Networks
Sitara Networks delivers QoS (Quality of Service) solutions that
enable organizations to analyze and report bandwidth usage, and
deploy and enforce policies for managing and optimizing application
and network performance. Organizations with a Sitara QoS-enabled
network can accelerate new application deployment, deliver consistent
application response times, improve Web access, and guarantee SLA
performance. This enables organizations to leverage their existing
network infrastructure, allowing enterprises to increase business
productivity and ROI on their infrastructure, and service providers
to create new revenue-generating services.
Sitara Networks is headquartered in Waltham, MA and operates subsidiaries
in Canada, South America, Europe and Asia. More information about
the company can be found on the Web at http://www.sitaranetworks.com.