I was under the impression that VoIP funding had slowed until I received this. The company is focusing on the high-end of the service provider market according to this release. At a certain point I was concerned about the funding level VoIP companies were receiving. I as concerned about overfunding and a new bubble being formed. My “VoIP Senses” tell me we are doing OK. I haven’t seen another funding announcement recently and most every VoIP company in the market is being cautious with their money. The exception seems to be Vonage who are advertising more aggressively than Microsoft. Coincidentally, the Redmond Goliath announced a new marketing campaign today.

BIVIO ANNOUNCES \$16.5 MILLION IN STRATEGIC VENTURE FUNDING

Company to Build Upon Capital Infusion from Top-Tier Investors to Support Accelerated Customer Acquisition and Revenue Growth in Hot IP Service Market

PLEASANTON, CALIF. - April 18, 2005 – Bivio Networks™, a leading supplier of next generation packet handling platforms, today announced a \$16.5 million funding from venture capital and institutional investment firms including Goldman Sachs, InterWest Partners, Storm Ventures, and Venrock Associates. 
Bivio is capitalizing on a fundamental industry shift in the way network service delivery platforms are implemented. Several of the most innovative, fastest growing network applications in the areas of security, VoIP (voice over IP), multimedia, wireless and IPv6 are increasingly built as software applications running on network appliances. Next generation network appliances such as Bivio’s 2000 product family provide a standardized open architectural foundation on which new services and the long standing promise of convergence can be delivered.

Bivio’s multi-gigabit network appliances, featuring a groundbreaking architecture specifically optimized for wire-speed execution of software-based network services, is rapidly gaining wider acceptance among network equipment vendors looking for cost-effective and timely ways to deliver advanced IP services. “Several industry leading companies are excited about the capabilities Bivio provides to overcome traditional performance and flexibility barriers,” said Alex Mendez, general partner at Storm Ventures. “It is encouraging to see the market shift to an environment that supports Bivio’s vision”.

“We are enthusiastic about the additional investment from some of the most prominent and highly respected investment entities around,” said Elan Amir, president and CEO of Bivio Networks.  “The commitment from these investment partners will enable us to broaden our market reach and continue to remain on the cutting edge of performance and innovation.”

“Given the extremely dynamic nature of many emerging network applications, we observe a major industry shift towards implementation of advanced network services in software,” explained Amir.  “These applications require a new class of highly scalable network appliances capable of delivering deterministic multi-gigabit speeds and tunable processing power. Bivio will continue to pioneer innovative system design to allow its partners to establish market leadership in their chosen application areas.” 

Bivio’s programmable network appliances are helping customers to deliver services that require deep packet processing combined with high network throughput. Based on open industry standards, Bivio fuses unmatched flexibility with uncompromising performance to enable customers to deliver the foundation of the next generation network infrastructure.

About Bivio Networks
Bivio Networks has developed the industry's first next generation packet handling platform that combines unparalleled scaling of network performance, processing power, and application agility.  Bivio's product is a network appliance featuring a groundbreaking architecture specifically optimized for wire-speed execution of emerging network services that increasingly demand deep packet processing combined with high network throughput.  Based on open industry standards, Bivio Networks fuses unmatched flexibility with uncompromising performance to enable its customers to overcome existing bottlenecks and deliver the foundation of the next generation network infrastructure. Headquartered in Pleasanton, Calif., Bivio Networks is backed by Goldman Sachs, InterWest Partners, Storm Ventures and Venrock Associates. More information is available at http://www.bivio.net/.

Bivio Networks Inc., the Bivio Networks logo, Bivio 2000™ and Bivio Networks™ are  trademarks of Bivio Networks Inc.

Copyright Bivio Networks, Inc. 2005. All rights reserved.


Media Contact:                                                         Marketing Contact:
Derek Kober                                                               Paul Liesenberg
Sr, Vice President                                                       VP Marketing
Neale-May & Partners                                                Bivio Networks
650.328.5555   Ext. 126                                              925-924-8640
dkober@nealemay.com                                               pliesenberg@bivio.net




Catherine Leahy
Neale-May & Partners
409 Sherman Avenue
Palo Alto, CA 94306
650-328-5555 ext. 115
cleahy@nealemay.com