JAB Wireless Raises $15M

PALO ALTO -- Hercules Technology Growth Capital, Inc. (NASDAQ:HTGC), the premier specialty finance company providing venture debt and equity to venture capital and private equity backed technology and life science companies at all stages of development, today announced that it provided $15 million in buyout financing to JAB Wireless, Inc., on December 21, 2007. JAB Wireless serves as the parent company to a variety of brands in the fixed wireless space that provide VoIP and high-speed Internet services.

The late-stage company is one of the largest firms in the extremely fragmented fixed wireless industry. JAB Wireless' businesses provide high-speed, broadband Internet connections and VoIP services that bypass the need for cable and telephone companies to provide these services.

"As the fixed wireless space begins to rapidly consolidate, JAB Wireless is leading this first wave of industry consolidation," said Kevin Grossman, managing director at Hercules. "In addition, the company is backed by a management team with a long resume of experience in buy-and-build strategies in the telecom space. We have a great deal of confidence in this team not only because of its technological proficiency but, more importantly, due to its strong, disciplined operational expertise."

Grossman added that financing JAB Wireless represents another example of Hercules' late-stage growth capital offering.

"JAB Wireless continues to achieve great success through our proven buy-and-build strategy in the fixed wireless industry," said James Vaughn, CEO of JAB Wireless. "Hercules' debt financing will help support this strategy of organic growth and acquisitions to help grow our subscriber base."

Hercules Technology Growth Capital

JAB Wireless Inc.