Network Elements Gets Partner, Funding

BEAVERTON, Ore. -- Network Elements Inc., a leading developer of high-performance 10Gb/s optical networking modules, today announced that the company has solidified a strategic partnership with Hillsboro-based TriQuint Semiconductor, a leading supplier of high performance components for communications applications. The companies will collaborate on the development, production and worldwide distribution of optical 10Gbs optical networking modules.

In addition to partnering with TriQuint, Network Elements also announced the closing of $15 million in financing from Alloy Ventures, New Enterprise Associates, and Lake Street Capital.

"Network Elements' combination of unparalleled leadership and market leading innovations speaks tremendously of the company's future," said John Shoch, Alloy Ventures. "As an original and current investor, Alloy Ventures is confident Network Elements' technological leadership and proven ability to develop top quality, high-performance products from conception to launch, will ensure the company's long term viability."

"The market has shown that Network Elements's technology and products offer the most impressive approach available for enabling today's high-speed optical networks," Gretchen Knoell, General Partner, Lake Street Capital. "The company's innovative technology, combined with their solid track record of producing top quality and high performance products, makes Network Elements an attractive investment for Lake Street Capital."

The partnership will expand both companies' presence in the 10Gb/s datacom, telecom, storage area networking and test markets. The collaborative partnership is expected to decrease product cost and complexity with advanced ICs, and reduce manufacturing and operational expenses while decreasing product time-to-market.

"We are extremely excited to be teaming with a company of Network Elements' caliber," said Glen Riley, VP and GM of TriQuint Semiconductor. "Network Elements' microelectronics and system integration competencies will complement our optoelectronics industry experience and capabilities, enabling both companies to provide products with the highest-level of quality and performance across a wide variety of markets."

With its recent acquisition of Agere's optoelectronics business earlier this year, TriQuint is now positioned as one of the world's leading suppliers of optical components and modules. In addition to TriQuint's low cost manufacturing capabilities and worldwide sales and distribution, the company's optical devices complement Network Elements' technology development and full product line.

"Both TriQuint's and Network Elements' customers will see immediate benefits from combining the most advanced optical module innovations in the industry," said Bruce Murdock, President and CEO, Network Elements, Inc. "TriQuint has proven to be a true leader in this industry and we're very pleased with the opportunities this partnership creates. With first rate investors and a top tier partnership with TriQuint, we plan on leading this market, enabling the rapid growth of 10Gbs networking."

Network Elements Inc.

TriQuint Semiconductor Inc.