OTTAWA, Ont. October 2, 2001 Galazar Networks™ Inc., a communications equipment company specializing in the development of intelligent optical networking systems for carriers and service providers, today announced the completion of an $11.2 million CDN financing round led by Skypoint Capital Corporation.

The round also included investments from leading venture capitalists such as VenGrowth Capital Partners, Katsura Investments and angel investors.

Our VC partners recognized the depth of the Galazar team’s experience in optical networking with tier 1 telecom companies, said Richard Deboer, Chief Executive Officer, Galazar Networks. With this financing we can maximize this experience, increase investment in R&D and expand our strategic partnerships with customers.

Galazar Networks boasts a world-class management team experienced in the creation and development of successful enterprises. The founders have held key management roles at companies like Nortel, Fujitsu and Lucent, and have experienced success in the telecom business at all levels, from the start-up phase through IPO and beyond.

"Galazar Network's team members were instrumental in developing the products and solutions which now carry as much as 85% of today's optical Internet traffic," said Peter Charbonneau, Partner, Skypoint Capital Corporation. Their strong technical vision, solid entrepreneurial experience and ability to execute made Galazar a perfect fit for the Skypoint portfolio of companies."

The Galazar platform will deliver a solution that enhances value and increases cost effectiveness for service providers and carriers evolving into the next generation of networks.

"Galazar is developing a ground-breaking solution that has the potential to redefine the communications industry. The founders came to us with a strong vision of the future of the industry, a proven management team, and a compelling business plan, said Graham Matthews, General Partner, VenGrowth Capital Partners. These qualities bode well for success, and we're happy to be associated with a company as exciting as Galazar.

About Galazar Networks
Galazar Networks is a leading communications equipment company that is delivering a next generation optical network solution. This solution allows service providers to ensure enhanced services value and to cost-effectively address their network evolution requirements. Based in Ottawa, Canada, Galazar Networks was formed by an experienced team of communications equipment and solutions engineers and executives. Galazar Networks is backed by proven venture financing partners. For more information, visit www.galazar.com

About Skypoint Capital Corporation
Headquartered in Ottawa, Canada, with offices in Montreal and Boston, Skypoint Capital is a venture capital management firm that manages the Skypoint Telecom Fund, which focuses on telecommunications and information technology industries. The fund provides equity capital to new or growing businesses with the potential to become major enterprises. For more information, visit the company’s website at www.skypointcorp.com

About VenGrowth Capital Partners
Founded in 1982, VenGrowth is one of Canada's most successful venture capital firms, managing close to $1billion in assets. VenGrowth funds are managed by a team of seasoned venture capitalists, widely known and respected in the industry. Over the past two decades, VenGrowth has been a value-added equity partner to more than one hundred small and medium sized businesses. For more information, visit www.vengrowth.com.

About Katsura Investments
Katsura Investments is a venture capital investment group that is focused on providing value-added early stage angel funding primarily to Ottawa-based technology startups and venture capital funds. The firm was formed by a group of successful entrepreneurs.

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