SAN JOSE, Calif., August 9, 1999 -- Allayer Communications today announced that it has raised $7 million from Greylock, VenGlobal Capital Fund and Acer Capital to fund the development of Internet related RoX™ architecture-based Fast Ethernet and Gigabit Ethernet switching ICs and intelligent fiber optic devices. This brings the total investment in Allayer to $12.5 million. Allayer Internet ICs create greater bandwidth for Internet communications by enabling smarter network switching systems and faster interconnection links.

"The growth in the Internet is matched by the demand for faster access through the network by more and more users, generating more and more network traffic," says Roger Evans, General Partner of Greylock. "Allayer's Internet ICs are relieving this pressure by enabling communication systems OEMs to create smarter and faster systems at lower cost. This expands the reach of the Internet into the home and small office, home office (SOHO) markets as well as fueling the continuing growth in the enterprise network market."

"Allayer has redefined the market for Fast Ethernet and Gigabit Ethernet switching ICs with its RoX™ or Ring-of-Switches architecture-based switch ICs," says Gary Cheng, General Partner of VenGlobal Capital Fund, L. P. "Their devices make it attractive for system OEMs to switch from custom ASIC designs to standard ICs that provide greater flexibility and lower total system cost. In addition, Allayer is the only vendor to match advanced mixed-signal capabilities with intelligent CMOS fiber optic technology. This gives them the edge in producing faster leading edge ICs in the future."

According to Cheng-chung Shih, Allayer President and CEO, "This new funding will permit us to move into next generation Internet related Layer 3/4 to Layer 7 router/ switch products and Intelligent Fiber Optic Devices. Our current Layer 2 Fast/Gigabit Ethernet switch devices have been well received by our target market, the makers of network systems equipment, and are expected to capture the major share of the available switch IC market during the next 18 months. We will introduce even more advanced devices during the next quarter and move quickly into volume production."

Company Background

Allayer Communications designs, manufactures, markets and supports advanced semiconductor products that improve the edge network system by providing silicon solutions that make switches smarter and links between workgroups faster. The corporate name -- pronounced "All-layer" -- represents the companyıs long-range intention to provide silicon solutions for all levels of the OSI networking model. Founded in 1997, Allayer uses a Modular Systems Standard Product or MSSP approach to design the most flexible, high performance and scalable ICs for Ethernet LAN switching and fiber optics applications. Allayer products are used by systems OEMs who manufacture local area networking equipment in the edge network that provides the interface between individual workstations or workgroups and the enterprise network backbone system.

Founded and managed by an experienced team of engineers and managers from Allied Telesyn, Rockwell, Level One, Exar, Cypress, Chipcom, LANart, Oak Technologies and Cabletron, Allayer is well positioned to create leading edge IC solutions for the Internet network systems market. Allayer possesses advanced engineering expertise in network system design, analog and digital ASIC design, mixed-signal CMOS and fiber optics technologies.

RoX™ and RoX-II™ are trademarks of Allayer Communications

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