Clarity Partners – Communications, Media and Business Services Private Equity Investors

OpenReach Secures $31 Million in Second Round Funding;
Co-lead Investors Lehman Brothers Communications Fund and Sofinnova Ventures Join Board of Directors

July 30, 2001
Woburn, Mass.

OpenReach, a provider of enterprise-class virtual private network (VPN) services, today announced it has secured $31 million in a second round of funding to support continued growth and expansion worldwide. The round was co-led by new investors Lehman Brothers Communications Fund and Sofinnova Ventures. Other investors included new investor IDG Ventures, as well as existing investors Polaris Venture Partners and Clarity Partners.

"The addition of three such well-respected firms to OpenReach's group of investors is a testament to our current and future success," said Mark Tuomnnoksa, chairman and CEO of OpenReach. "The investment by both our new and existing backers extends beyond monetary value, as each partnership brings OpenReach new experience, expertise and relationships."

OpenReach will use the funds to enhance its service offering to existing and new enterprise customers, expand distribution channels in the US, Europe and Asia and continue product research and development of its unique patent-pending networking and security technologies.

"OpenReach offers the first VPN solution that is a credible replacement for expensive frame relay networks. OpenReach's experienced management team, its unique approach to addressing critical business needs and the ability to show dramatic return on investment to enterprise customers make it a compelling investment choice for us," said Gerald Thames, managing director of Lehman Brothers.

OpenReach offers services that allow enterprises to conduct secure communications with remote offices, partners and customers worldwide. Unlike legacy products and services, OpenReach VPN services deploy in hours over any existing infrastructure, saving enterprises time and money in achieving immediate return on investment.

The Board of Directors will be enhanced by the addition of Gerald Thames, managing director in Private Equity at Lehman Brothers, and Robert Carr, managing director of Sofinnova Ventures.

About OpenReach, Inc.

OpenReach provides virtual private network (VPN) services that enable enterprises to build secure and reliable global networks in hours. OpenReach delivers a managed service that allows enterprises to conduct secure communications with remote offices, partners and customers worldwide. Unlike legacy VPN products and service providers, OpenReach VPN services deploy over any existing infrastructure, saving time and money in achieving immediate return on investment. Founded in 1999, OpenReach provides VPN services to more than 100 customers worldwide. Learn more about OpenReach.

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