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Tatara Raises $8M

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ACTON, Mass. -- Tatara Systems, a worldwide leader in mobile services convergence, today announced that it has secured $8 million in additional funding to fuel the company’s growth in the rapidly emerging femtocell market. This investment was led by Highland Capital Partners and North Bridge Venture Partners, two leading firms with extensive experience investing in communications equipment, network infrastructure, and software.

At the same time, the company announced new additions to its management team. E.Y. Snowden, who has served on the company’s board of directors since 2004, has been named Executive Chairman of the Board, and Stephen Collins has joined the company as Vice President of Marketing and Business Development. In addition, Ray DeZenzo, Tatara’s CFO and Vice President of Operations, has been named General Manager of Tatara’s mobile broadband business unit. Steve Nicolle, who has served as President and CEO since 2003, is stepping down to pursue other interests, but will continue with the company in an advisory role.

Femtocells are a disruptive new technology that will improve in-home mobile coverage, and enable operators to deliver new, enhanced IP services to the large installed base of existing mobile handsets. Tatara has staked out an early leadership position in this market, as the first vendor to announce an all-IP solution for femtocell convergence, introducing the industry’s first femtocell-focused fixed-mobile convergence application server. The Tatara Convergence Server enables femtocells to backhaul cellular traffic over a broadband connection using SIP signaling, with a key advantage of this approach being ready integration with the operator’s IP services infrastructure.

“Mobile operators are showing intense interest in femtocells, as they seek ways to expand network coverage and capacity”, said Ed Anderson, Managing General Partner at North Bridge Venture Partners. “Unlike other fixed-mobile convergence solutions, operators see a clear business model for femtocells, and are moving quickly to roll out new converged services that will increase revenue and reduce churn. North Bridge is pleased to be working with the team at Tatara, which is well-positioned in front of this exciting, new market.”

Tatara Systems Inc.

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