OTTAWA, Ontario, April 8, 2003 - Galazar Networks Inc., a privately held fabless semiconductor company, has closed its Series B financing, raising $22.7 million CDN in venture capital. The round involved both new and existing investors, including Skypoint Capital Corporation, VenGrowth Capital Partners, Katsura Investments, Desjardins Venture Capital Group, RBC Capital Partners and Goldman Sachs. The funds will be used to further expand sales, marketing and product distribution efforts, and to support additional product development.

"Attracting such a strong mix of high-quality investors is a testament to the strength of Galazar's performance and ability to deliver industry-leading products such as the MSF250 and Ethernet-over-SONET/SDH products which are shipping to customers this quarter," said Richard Deboer, CEO, Galazar Networks. "This financing will enable us to further strengthen strategic relationships with top-tier customers, to expand our distribution channels, and to accelerate the roll out of our broadening product portfolio."

Galazar Networks' product portfolio of carrier-grade semiconductors for multi-service, Ethernet and data service framers enable communications equipment vendors to develop networking products that will drive down the deployment costs of Ethernet and legacy access services. Galazar's flagship product, the MSF250 multi-service framer, addresses the growing market for carrier equipment that delivers existing and next-generation services to enterprises, without the need for costly central office investments or upgrades.

"We were impressed with Galazar's tremendous level of customer validation, key design wins, partnerships and purchase orders," said Ankur A. Sahu, Vice President in the Principal Investment Area of Goldman Sachs, who is joining Galazar's Board. "Galazar's talented team and vision have positioned the company as leaders in the Ethernet-over-SONET/SDH and multi-service framer markets."

This latest round of funding brings the total raised by Galazar Networks to over $33 million CDN.

About Galazar Networks
Galazar Networks Inc., based in Ottawa, Canada, is a fabless semiconductor company that is delivering leading carrier-grade multi-service, Ethernet and data service framers for highly channelized service applications. Galazar's products enable network equipment vendors to deliver market-differentiating products in shortened timeframes, and with lower development cost.
For more information, visit www.galazar.com.

INVESTOR INFORMATION

Skypoint Capital Corporation
Skypoint Capital Corporation is a venture capital management firm that manages venture capital funds focused on the telecommunications and information technology industries. They specialize in building telecom companies that deliver disruptive and competitive advantages to telecom carriers. The managers of Skypoint comprise an experienced and cohesive team with a history of working together. Skypoint brings a range of experiences that include working with more than 60 early stage technology companies and can provide hands-on support to help their portfolio companies grow. They have a strong record of investment and operational success. They are experienced in identifying the right opportunities and the right people to turn ideas and concepts into stakeholder wealth.
For more information, please visit their web site at www.skypointcorp.com.

VenGrowth Capital Partners
VenGrowth Capital Partners, established in 1982, is one of Canada's premier venture capital firms, and has over $1 billion in active assets under management. VenGrowth brings a hands-on investment style and a significant amount of expertise, experience and resources to its investees. VenGrowth has offices in Toronto, Ottawa and Boston, and focuses on information technology (semiconductor, communications, enterprise software and Internet infrastructure), life sciences, and advanced manufacturing investments.
For more information, please visit their web site at www.vengrowth.com.

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 start-ups and venture capital funds. The firm was formed by a group of successful entrepreneurs.

Desjardins Venture Capital Group
Desjardins Venture Capital Group is the venture capital fund management arm of the Mouvement des Caisses Desjardins of Montreal. It manages the assets of Investissements Desjardins, a limited partnership, the six Investment Desjardins regional funds, as well as Capital Régional et Coopératif Desjardins, a public fund whose assets under management are projected to reach $1.5 billion over the next ten years. More than a financial partner, Desjardins Venture Capital Group makes its network and expertise available for businesses in their start-up, growth and expansion phases, as well as their plans for mergers, acquisitions or public offerings. More than 140 companies are already associated with Desjardins Venture Capital Group.
For more information, please visit their web site at www.dcrdesjardins.com (English) or www.dcrdesjardins.com (Français).

RBC Capital Partners Telecom Fund
RBC Capital Partners ("RBCP") is the private equity-investing arm of Royal Bank Financial Group, with $US 660 million in allocated capital for equity investment and $US 135 million in allocated capital for mezzanine debt investing. The Telecom Fund team consists of professionals with diverse backgrounds, deep industry transaction and financing expertise, who will work actively and "hands-on" with the management teams of the companies to develop and accelerate business plans, infuse talent, attract partners and ultimately create and crystallize value.
For more information, please visit their web site at www.rbccm.com/0,,cid-16110_,00.html.

Goldman Sachs
Goldman Sachs is a leading global investment banking, securities and investment management firm that provides a wide range of services worldwide to a substantial and diversified client base that includes corporations, financial institutions, governments and high net worth individuals. Founded in 1869, it is one of the oldest and largest investment banking firms. The firm is headquartered in New York and maintains offices in London, Frankfurt, Tokyo, Hong Kong and other major financial centers around the world.
For more information, please visit their web site at www.goldmansachs.com/client_services/merchant_banking/index.html.

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