CAMPBELL, Calif.--(BUSINESS WIRE)--April 15, 2002--Syndeo Corporation, a leading provider of Class 5 Voice-over-IP ("VoIP") softswitch/call management server technology, today announced that it has raised approximately $75 million in its third round of financing. Co-led by Comcast Interactive Capital and IUGO Ventures, the deal includes participation from Comcast, AOL Time Warner, Cox, Rogers, and Shaw through their respective venture arms. Other equity investors include Critical Mass Ventures, Intel Capital, Invemed Fund, L.P., Meritech Capital Partners, Presidio Venture Partners, Redpoint Ventures, Scientific-Atlanta, Sumitomo Corporation, Sun Microsystems, WK Technology Fund, and YAS Broadband Ventures. The company has raised a total of approximately $98 million to date.

"We are thrilled with the level of participation from the cable operators and other strategic investors. These investors are affiliated with five of the eight largest remaining MSOs, passing approximately 70% of all homes in the US and Canada. We were one of the first softswitch companies to spot the opportunity for VoIP in the cable market, and our focus on CLASS 5, primary-line voice, and PacketCable* compliance have been the critical factors in our success," said Ted Griggs, Syndeo's Chief Executive Officer, "It has taken more than 300 engineer-years worth of effort to build a deployable Class 5 softswitch, and we are excited that cable MSOs, as broadband leaders, recognize Syndeo's market leadership. Syndeo's Syion(TM) 426 softswitch and call management server will enable cable operators to offer telephony service with a compelling feature set in a cost effective manner."

"Syndeo's technology, management team, and focus on delivering primary line voice in conformance with PacketCable* specifications have demonstrated that the company is well positioned to meet the needs of cable operators adding voice-over-IP to their portfolio of service offerings," said Louis Toth, Principal of Comcast Interactive Capital. "We are very excited to be co-leading the round and believe strongly in Syndeo's potential to succeed in the local exchange softswitching market."

Syndeo's product, the Syion* 426, is a Class 5, line-side softswitch built to carrier-class standards of reliability, scalability, and performance. The Syion was also architected to support such regulatory services as E911, operator services, and carrier pre-select, enabling cable operators and other competitive providers to offer primary line voice services. The Syion can deliver over twenty-five local exchange voice features and services over any converged IP network, whether cable, fixed wireless, or DSL. Syndeo believes, however, that cable MSOs have the earliest opportunity to deploy VoIP due to a combination of the industry's direct access to the end-user and its concerted efforts to establish specifications for VoIP and other multimedia through CableLabs' PacketCable(TM) project.

"Having led the first implementation of IP telephony at Videotron, IUGO was looking to invest in a softswitch company that paid attention to reliability, scalability, and redundancy as well as regulatory features such as emergency services, local number portability, and lawful intercept. Syndeo is our VoIP investment of choice because of the management team's relentless focus on these issues and their support of cable industry specifications such as those set by PacketCable(TM)," said Francois Laflamme, Partner of IUGO Ventures and formerly Vice President of IP Telephony at Videotron.

"This is a very strong endorsement of Syndeo," said John Walecka of Redpoint. "As an early investor in Syndeo, we have always believed that Syndeo is well positioned to lead the VoIP industry with carrier grade technology and innovative applications. This is a spectacular financing in a very difficult market, and it reflects the caliber of the management team and the progress and traction Syndeo has gained over the last three years."

Louis Toth and Francois Laflamme have joined Syndeo's Board of Directors.

About Syndeo Corporation
Syndeo Corporation was formed in 1999 to empower broadband local loop and traditional narrowband carriers to drive additional value over their next-generation converged networks by offering VoIP (voice-over-IP) services. The company's Syion 426 Local Exchange Platform or Call Management Server replaces PSTN Class 5 or local exchange switch functionality in a broadband access network, combining revenue-generating features with a carrier-grade softswitch platform that scales linearly to large numbers of subscribers.

The company gained ISO 9001 Quality System Standard certification in March 2000. For more information, call 408-861-1000 or visit Syndeo's web site at (www.syndeocorp.com).

About Comcast Interactive Capital
Comcast Interactive Capital (CIC) is a venture capital fund focused on broadband, enterprise and interactive technologies. CIC is affiliated with Comcast Corporation, a diversified global leader in cable, broadband services, telecommunications, electronic commerce, and entertainment. CIC's primary goal is to generate superior financial returns from private equity investments in early-stage technology companies. To achieve this goal, CIC works to foster the success of its portfolio companies by bringing to bear the unique resources, experience, and insight of both CIC and the Comcast family of companies. Additional information is available at (www.civentures.com).

About IUGO Ventures
IUGO Ventures (www.iugo.com), a Montreal-based strategic venture "catalyst", was established in 2000 to invest in early-stage technology companies around the world and to manage a broadband private equity investment portfolio. IUGO Ventures is committed to the development and deployment of global broadband services for consumers and small & medium businesses. IUGO wants to join with broadband entrepreneurs who share their vision, connect ideas with their expertise, and shape the future of broadband worldwide. Most of the IUGO Ventures partners are former Videotron executives involved in the deployment of broadband technologies and services. IUGO is able to leverage a network of entrepreneurs, service providers, and industry experts to build world-class companies.

About Redpoint Ventures
Redpoint Ventures is a leading venture capital firm focused on creating franchise and platform companies that will form the foundation of the next generation and broadband Internet. Redpoint was founded in Fall 1999 by partners from two of California's top venture capital firms, Brentwood Venture Capital and Institutional Venture Partners. Redpoint is based in Menlo Park, CA with an office in Los Angeles. Redpoint can be found on the Internet at www.Redpoint.com.

CONTACT: Syndeo Corporation Maryling Yu, 408/376-1135 URL: www.syndeocorp.com or S&S Public Relations Steve Fiore, 408/564-0324