Other investors include Gemini Israel Funds, Intel Capital, and Koor Corporate VC

Riverhead Networks was founded in December 2000 by Prof. Yehuda Afek, Dr. Dan Touitou, Anat Bremler Bar, and Yuval Rachmilevitz to help service providers and carriers address the pressing issue of protecting their networks and their customers from Distributed Denial of Service (DDoS) attacks. DDoS attacks present security threats for any business relying on online service and accessibility. Under a DDoS attack, pre-installed daemons are used to create extreme overload conditions on a victim's bandwidth or processing capabilities thus denying regular service to legitimate users.

Popular among hackers for several years, the problem has recently intensified with the proliferation of cyber terrorism, cyber protests, and automatic and easily accessible attack tools. It is estimated that there are currently over 4,000 DDoS attacks per week, affecting not only Web sites, but also the routers on the network infrastructure itself.

Riverhead's solution uses a series of complex algorithms to alert and prevent DDoS attacks, allowing uninterrupted operations, even in the midst of an unauthorized or malicious assault. Its ability to assure free flow of legitimate traffic during attacks at any level of the network makes Riverhead's offering suitable for ISPs and Data Centers operators. As the solution does not reside on the critical path of the data, it is perfectly suitable for backbone and wide bandwidth implementations.

"We are thrilled to have secured this second round of financing at what is a difficult time for venture capital funding," said Yuval Rachmilevitz, Riverhead's CEO. "The funding from our investors and the strategic relationships with our partners will be of great importance in helping us boost marketing and sales activities."

"Riverhead's unique technology presents a new approach to solve an existing and urgent need of service providers," said Shmil Levy, partner at Sequoia Capital. "Their strong management team and early traction with key prospects places Riverhead in a perfect position to become the market leader for the Distributed Denial of Service (DDoS) security systems."

Orna Berry, Riverhead's Chairperson and a Venture Partner in Gemini Israel Funds, said: "Riverhead offers one of the most comprehensive DDoS prevention mechanism in the industry. The product is easy to install and is fully scalable. The company is innovative with a very strong management team, and is on its way to adapting this DDoS solution for many critical Internet traffic applications."

About Riverhead Networks
Riverhead, formerly WanWall, was founded in December 2000 by a team of professionals with vast technological expertise and extensive training in the fields of computer security, development and programming. Riverhead's systems provide solutions for one of the most critical security problems facing both corporate and governmental Web sites - Distributed Denial of Service (DDoS). Using a series of complex algorithms to alert and prevent DDoS attacks, Riverhead's solutions allow uninterrupted operations, even in the midst of an unauthorized or malicious assault.

Riverhead advanced solutions are designed for ISPs, ASPs, Hosting & Data Centers protecting both their own network, and their customers, from Distributed Denial of Service (DDoS) attacks. Riverhead is unique in cleaning DDoS traffic at the ISP & Data Center levels while enabling free flow of legitimate traffic, and doing so without being on the critical data path.

Additional information about Riverhead is available at: http://www.riverhead.com/

About Sequoia Capital
Founded in 1972 Sequoia capital is one of the leading venture capital firms. In the last three decades Sequoia has funded hundreds of companies among them are: Apple, 3COM, Cisco, LSI, Yahoo, Redback and Flextronics. Sequoia Capital targets its investments in early stage companies in the areas of components, System and Software. Sequoia Capital offices are located in Menlo Park California and Herzelia Israel. For more information, visit www.sequoiacap.com.

About Gemini Funds
Gemini Israel Funds is a pioneer in Israel's venture capital industry. Gemini provides start-up financing and expert guidance to talented entrepreneurs. Through our offices in Silicon Valley and Israel, Gemini offers high-level access to U.S.-based investors and a global network of corporate partners. With over $350 million under management in three funds, Gemini focuses on seed and early stage companies in the fields of Telecommunications, Data Communications, Fabless Semiconductors, Enterprise Software, Internet Infrastructure and Medical technologies. Gemini's portfolio includes Allot, Business Layers, Ceragon, Commtouch, D-Pharm, Jacada, Lambda Crossing, Precise, Saifun, Schema, Tdsoft and Verisity. For more information, visit www.gemini.co.il.

About Intel Capital
Intel Capital, Intel's strategic investment program, focuses on making equity investments and acquisitions to grow the Internet economy, including Internet infrastructure, content and services in support of Intel's strategic interests. In Israel, Intel Capital invests through Intel Atlantic Inc., a subsidiary of Intel Corporation. For more information, visit www.intel.com/capital.

About Koor Corporate Venture Capital
Koor Corporate Venture Capital (Koor CVC) is the Venture Capital arm of Koor Industries (NYSE: KOR), a leading Israeli investment-holding company. Established in January 2000, Koor CVC was allocated $250 million of Koor Industries' funds for investment in young companies in the fields of Telecommunication and Wireless Technology, Semiconductors, Enterprise Software and Life Sciences. Koor CVC is also invested in six of Israel's leading Venture Capital Funds, which form part of Koor's cooperation within the investment community. For more information, visit www.koorcvc.com.

CONTACT: Samantha Leggat of Lighthouse Public Relations, +1-925-447-5300, or fax, +1-925-447-5900, or eFax, +1-815-550-4455, or , for Riverhead Networks