OTTAWA, Canada - March 27, 2006 - Galazar Networks® Inc., a leading semiconductor vendor of Ethernet, T1/E1 and SONET/SDH access solutions, announced the closing of its Series C financing of $US 6.6 Million. This round, was led by BDC Venture Capital, and included a new investor Mitsui and Co. Ltd as well as investment from current investors Skypoint Capital Corporation, VenGrowth Capital Partners, Katsura Investments, Desjardins Venture Capital Group, RBC Capital Partners and Goldman Sachs. This brings the total amount of funding to date to $US 28.5 million.

“The current broadband rollout of an all IP network for wireless, business and residential video and data requires high capacity Ethernet services on carrier grade transport silicon with easy-to-use software solutions.”, said Karl Reckziegel, Director BDC Venture Capital. “Galazar has built a strong product portfolio with a broad base of top tier global customers whose networking solutions are being deployed globally to serve the transition to an Ethernet transport based network”.

“This financing validates Galazar's execution in delivering Ethernet transport solutions for wireline, wireless and triple play network transitions to Ethernet based architectures.” said Richard Deboer, CEO, Galazar Networks. “This funding will support the expansion of our product line for next generation Carrier Ethernet services”.

About Galazar Networks Inc.
Galazar Networks Inc. is a leading semiconductor vendor focused on framers for carrier grade Ethernet over SONET/SDH (EoS) and Multi-Service line cards. Our products support SONET/SDH, PDH (DS3/E3, DS1/E1), data (Ethernet, packet, private line) and SAN services (Fibre Channel, FICON, ESCON, Gigabit Ethernet). Galazar is a technology leader in Generic Framing Protocol (GFP), Virtual Concatenation (VCAT) of both High and Low Order paths, and Link Capacity Adjustment Scheme (LCAS). Galazar’s products are ideal for Ethernet, SAN and Multi-Service CPE/CLE platforms as well as EoS, PoS and SAN line cards for ADMs, routers, MSTPs and Metro Core switches. For more information, visit www.galazar.com.

About BDC Venture Capital
BDC Venture Capital is a major venture capital investor in Canada, active at every stage of the company's development cycle, from seed through expansion, 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 approximately $550 million in venture capital assets invested in the areas of Life Sciences, Telecommunications, Information Technology, Advanced Technologies and Funds Investments. For more information, visit www.bdc.ca.

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