September 29, 2004

Azaire Networks Secures $9 Million in Series B Financing Led by Rustic Canyon Partners and Woodside Fund

SANTA CLARA, Calif., September 29, 2004 – Azaire Networks, a leading provider of Cellular/Wi-Fi convergence network solutions, announced today the close of $9 million in Series B financing led by Rustic Canyon Partners and Woodside Fund. Existing Series A investors, including Convergence Partners, also participated in the round. Azaire Networks will use these funds to expand the company's sales and product development activities and increase their marketing resources globally.

Rustic Canyon Partners is a West coast-based private equity firm with extensive experience in middle-market technology companies and Redwood Shores-based Woodside Fund is an early-stage venture capital firm specializing in enterprise software and network infrastructure companies. Both firms offer a strong understanding of telecommunication-related investments and a deep operational involvement with entrepreneur teams. Combined, the firms have $1 billion in capital under management.

In conjunction with this announcement, Michael Kim, a partner with Rustic Canyon Partners and Dr. Robert Larson, co-founder and managing director of Woodside Fund, have been elected to Azaire Network’s board of directors.

“We believe Cellular/Wi-Fi convergence is a great opportunity. We found that Azaire’s solution uniquely addressed the needs of operators, allowing them to leverage their existing core network investments,” said Mr. Kim. “We have tremendous confidence in Azaire’s world-class management team, who bring experience from leading mobile, IP, and data communications companies.”

“Azaire’s technology stands to revolutionize telecommunications for the consumer and the industry as a whole,” added Dr. Larson. “Carriers have an untapped need for Azaire’s Converged Network Platform (CNP) solution because it easily integrates into carrier networks with industry standard interfaces to provide a seamless user experience.”

Azaire’s Converged Network Platform easily integrates onto a carrier’s existing network providing key features like multi-authentication, integrated billing, secure roaming, delivering common data services and providing the end users with a unified user interface. Azaire Networks has implemented its Converged Network Platform with leading carriers worldwide, most recently with Rogers Wireless, Canada’s largest GSM operator, Mobilkom Austria, Austria's leading mobile carrier, and GoMobile, Malta’s fastest growing mobile operator. The Platform is currently in trial with several other carriers.

"Mobile operators need to offer their customers a complete set of wireless access technologies," said Keith Waryas, senior analyst at IDC. "Doing this, however, requires that carriers find partners that can provide the flexibility needed to seamlessly merge multiple access networks, while providing an easy-to-use, standardized interface for users."

“We appreciate the confidence and long-term view that both Rustic Canyon Partners and Woodside Fund have in our vision of the convergence marketplace,” said Bill Howe, President and Chief Executive Officer of Azaire Networks. “Both firms’ years of investment and prudent business experience will be invaluable to Azaire’s future, and the recent funding will help us to accelerate the delivery of Azaire's Converged Network Platform to carriers around the world.”

About Azaire Networks
Azaire Networks enables network operators to integrate Wi-Fi into their existing voice and data service offerings, helping these companies achieve true converged services. The company’s unique Converged Network Platform (CNP) enables operators to provide seamless access, giving end users a common look and feel regardless of access technology (GPRS, Wi-Fi, DSL, UMTS, etc.). The company is based in Santa Clara, California with an office in the Netherlands. For more information, visit http://www.azairenet.com.

About Rustic Canyon Partners
Rustic Canyon Partners is a leading West Coast-based investment firm, investing primarily in venture capital stage and middle-market companies positioned for strong growth. The firm currently manages two investment funds, Rustic Canyon Ventures and Rustic Canyon Ventures SBIC, with combined capital of approximately $700 million, making it the largest venture capital firm based in Southern California. With a unique footprint that covers Southern California, Silicon Valley and the Pacific Northwest, and an extraordinary team with diverse and complementary backgrounds, we provide the expertise and strategic insight that prudent investment decisions require, and the guidance necessary for sustained growth and superior returns. For more information, visit http://www.rusticcanyon.com.

About Woodside Fund
Woodside Fund is a leading venture capital firm that excels in developing seed- and early-stage technology companies. Founded in 1983, the Fund attributes its long record of success to the high value it places on building productive partnerships with entrepreneurs, investors and other service providers. Typically a lead investor, Woodside Fund invests from $5 million to $15 million in early-stage companies focused on enterprise software and network infrastructure located in Northern California and the West Coast. Woodside Fund has five funds and actively manages more than $300 million in investments. For more information, visit http://www.woodsidefund.com.

For all press related questions or comments, please contact Matt Bolton at mattb@woodsidefund.com
or phone 650.610.8050.

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