ThreeFive Files for Protection

HOUTEN, the Netherlands -- ThreeFive Photonics BV of the Netherlands, the leading company for chip based optoelectronic integration, today announced it has filed a "suspension of payments" request with the Dutch court. The measure, equivalent to "chapter 11" filing, has been taken in order to explore alternative financing strategies for the company that is suffering from the downturn in the telecommunications sector. The global telecom market for optoelectronic components and chips imploded from $ 8 Bln. in 2000 to $ 1.5 Bln. in 2003. As network operators and equipment manufacturers hardly buy anything right now, the path to breakeven for a high-tech startup company like ThreeFive Photonics is even more difficult.

"Our existing financing situation does not allow us to sit through the current telecom winter", says Wouter Deelman, CEO of ThreeFive Photonics. "So far, our efforts to raise sufficient capital to continue operations have been unsuccessful. While our current investors Atlas Venture and Gilde are willing to contribute a significant amount to the Series B round, we have not been able to complete the round with new investors yet. At this point we are evaluating all possible strategic alternatives, including the sale of the company as a going business."

ThreeFive Photonics B.V.