VANCOUVER, Canada--(BUSINESS WIRE)--April 30, 2002--Galian Photonics Inc., a developer of integrated optical components enabled by photonic crystal technology, announced today the completion of a US$4.4 million (CAD$7.1 million) second round financing. The financing included new investors BDC Venture Capital and Intel Capital together with prior investors Ventures West, the Working Opportunity Fund, and individuals.

"We are pleased to announce the completion of this financing amid what has been a difficult investment climate for the optical sector," said Richard McMahon, president and chief executive officer. "We are delighted to have received funding from our existing and new investors. We believe that photonic crystals are a strategic technology that will underpin the introduction of high functionality optical components with extremely small form factors at very competitive prices."

"Intel Capital invests in companies to help accelerate the proliferation of high performance communications networks," said Rama Shukla, General Manager of Intel Photonics. "Technologies, like Galian's, could enable higher levels of optical components integration and functionality, which would reduce optical communication networks' overall cost of ownership."

"BDC Venture Capital recognizes Canada's strength and heritage in telecommunications technology and is actively seeking out strong photonic investment opportunities," said Claude Miron, vice president of BDC Venture Capital. "We are very impressed by Galian's intellectual property portfolio and its seasoned management team."

Galian is developing optical components based on photonic crystals. These products will be manufactured through the use of silicon photonics. Silicon photonics uses silicon and standard silicon processing techniques along with semiconductor packaging technology to deliver high functionality devices and extremely small form factor at very competitive prices. "Photonic crystals will play a key role in the evolution of optical component technology", says Dennis Prather, a professor at the University of Delaware and a leading authority on photonic crystals. "Galian's announcement is an indication of the timely transition of photonic crystal technology from the laboratory to the commercial market."

"Our strategy is to combine our core intellectual property and expertise in photonic design with strategic supplier relationships to deliver new products in line with market demand," says Dr. Mike Jackson, Galian's chief technology officer and vice president research and development. "We are very pleased with the relationships we are building with lead customers and with the supply chain we are developing to deliver our products to them".

The financing proceeds will be used to continue advancing Galian's technology, to expand operations and customer reach by hiring additional technical and marketing personnel and to implement Galian's fabless business model.

About Intel Capital
Intel Capital (www.intel.com/capital), Intel's strategic investment program, focuses on making equity investments and acquisitions to grow the Internet economy in support of Intel's strategic interests. Intel Capital invests in hardware, software and services companies in several market segments, including computing, networking and wireless communications.

About BDC Venture Capital
BDC Venture Capital (www.bdc.ca) is a major venture capital investor in Canada, active at every stage of the company's development cycle from seed through to Initial Public Offering, with a focus on technology based businesses that have high growth potential and that are positioned to become dominant players in their markets. BDC Venture Capital has been involved in venture capital since 1975 and has to date invested in more than 400 different companies. It currently manages more than $350 million in venture capital assets and over 80% of its portfolio is invested in the areas of biotechnology, medical and health related technology, telecommunications, information technology and electronics.

About Ventures West
Ventures West (www.ventureswest.com) is a privately held venture capital management group that invests in young technology companies across Canada from offices in Vancouver, Toronto and Ottawa. It is one of Canada's preeminent technology investment organizations with experience that spans over 150 technology companies. Ventures West's investment focus is on companies in the information technology, telecom, biotechnology, and power technology sectors.

About the Working Opportunity Fund
The Working Opportunity Fund, managed by GrowthWorks Capital Ltd., (www.growthworks.ca) is the largest venture capital fund in western Canada with over $500 million in assets under management and 50,000 shareholders. WOF has invested over $250 million in more than 70 small and medium sized businesses in BC's emerging sectors, primarily information technology, life sciences, and advanced manufacturing.