FREMONT, Calif. -- Phaethon Communications, aninnovator in photonics technology, today announced that it has closed aSeries B investment round totaling $22.1 million, led by The Goldman SachsGroup Inc. and its affiliates along with Cisco Systems Inc., Mohr, DavidowVentures (MDV) and The Photonics Fund. Phaethon plans to use this capitalto increase its investment in engineering, sales and marketing and to buildit's manufacturing facilities.

"We're very pleased with the quality of our investors and with whattheir support can bring to Phaethon's product development cycle," said GaryCuccio, chief executive officer and president of Phaethon. "Both GoldmanSachs and Cisco were attracted to the importance of our dispersioncompensation solutions and the remarkable success we've already demonstratedwithin an extremely short time. As we prepare to launch our first productscommercially in 2001, this new funding will fuel our next round of growth,including manufacturing capabilities."

In a separate release:

Phaethon Communications, an innovator inphotonics technology, today announced that it has added two new members toits board of directors, in conjunction with its Series B funding round alsoannounced today (please see separate news release on this $22.1 millioninvestment round). The addition of Jeff Thermond, former CEO of Epigram andnow a Broadcom executive, and John Malone, CEO of the Eastern ManagementGroup consulting firm, brings important industry perspective to an alreadystrong board that includes Jon Feiber, general managing partner at Mohr,Davidow Ventures; Randy Strahan, venture partner at Mohr, Davidow Ventures;and Catherine Pierson Lego, managing partner of The Photonics Fund.

http://www.phaethoncommunications.com