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ColorChip Closes $9.5 Million Financing Round
[January 12, 2006]

ColorChip Closes $9.5 Million Financing Round


CAESAREA, Israel, January 12 /PRNewswire/ -- ColorChip, a leading manufacturer of glass-based Planer Lightwave Circuit (PLC) chips and modules for the Fiber To The Home (FTTH) networks, today announced that it has closed a $9.5M financing round led by Bessemer Venture Partners and joined by Motorola Ventures, the venture capital arm of Motorola Inc. and European Venture Partners(http://www.evp.co.uk/) .Also participating were existing investors Eurofund (http://www.eurofund.co.il/), Polytechnos (http://www.polytechnos.com/), and Walden (http://www.walden.co.il/).


According to Moshe Price, CEO of ColorChip, the proceeds will enable the company to move from the development to the mass production stage, expanding efforts in marketing and sales and R&D for different applications in new markets.
"We are thrilled to have as a major investor, Bessemer Venture Partners, who are experienced investors in the communications field with an excellent track record, including several recent successful investments in Israel. We are honored by the strategic investment from Motorola, a global communications leader," Added Moshe Price.
The company is currently shipping first samples of its Meteor II FTTx SOG(TM) Transceivers for optical network terminals (ONT/ONU) for GPON and EPON. ColorChip is also distributing PLC splitters - based on the company's breakthrough Ion-Exchange process - mainly to the FTTx, CATV, analog and digital PONs markets.
Bob Goodman, General Partner at Bessemer Venture Partners stated:
"Bessemer is pleased to lead this financing in ColorChip. ColorChip has a unique PLC technology in the field of transceivers for FTTH and other applications, and we believe that ColorChip will become a leading player in this 'hot' and fast growing market."
"We are glad to join as strategic investors in ColorChip," said Matthew Growney, managing director of Motorola Ventures. "This investment is another link in the series of Motorola investments, emphasizing Motorola's belief and commitment to bring BroadBand services to consumers' homes. We believe that in the years to come, fast internet services such as IPTV, Interactive Gaming and rich content services, will lead the broadband Information Technology (IT) revolution at home."
About Bessemer Venture Partners
Bessemer Venture Partners (BVP) is the oldest venture capital practice in the United States. With offices in Silicon Valley, Boston, New York, Shanghai, Mumbai, and Bangalore, the firm manages more than a billion dollars of venture funds, carrying on a tradition of hands-on, active venture investing that has continued since 1911. Over 100 Bessemer companies have gone public, including American Superconductor, Ciena, Gartner Group, Ingersoll Rand, International Paper, Maxim, Parametric, Perceptive Biosystems, Staples, VeriSign, Veritas and W.R. Grace.
For more information: http://www.bvp.com/
About Motorola Ventures

Motorola Ventures (MV) is the global, strategic venture capital investment arm of Motorola, Inc. MV actively invests at all stages in developing companies of strategic value to Motorola in order to accelerate access to new technologies, new markets and new talent. For more information: http://www.motorola.com/ventures .
About Motorola Motorola is a Fortune 100 global communications leader that provides seamless mobility products and solutions across broadband, embedded systems and wireless networks. In your home, auto, workplace and all spaces in between, seamless mobility means you can reach the people, things and information you need, anywhere, anytime. Seamless mobility harnesses the power of technology convergence and enables smarter, faster, cost-effective and flexible communication. Motorola had sales of US $31.3 billion in 2004. For more information: http://www.motorola.com/ .
About ColorChip, Inc.
ColorChip (http://www.color-chip.com/) is a privately held company that designs, develops and markets innovative chips and modules for the fiber optic access and datacom markets. The Company's products are based on its Ion Exchange on glass and revolutionary SOG(TM) (SystemOnGlass(TM)) technologies. ColorChip provides PLC splitters, integrated SOG(TM) Fiber To The Home (FTTx) transceiver chips, and other customized PLC products. The company's technology assures complete reliability, while enabling significant development and manufacturing cost reductions as well as reduced product and component footprints.
Motorola, Inc.
Juli Burda
Motorola, Inc
+1-847-538-5625
[email protected]


ColorChip,Inc
Ari Mizrachi
Director Marketing&Sales
Mobile:+972-54688823
Tel: +972-4-637-6667
Fax: +972-4-637-7307
[email protected]

ColorChip Ltd.

CONTACT: Motorola, Inc., Juli Burda, Motorola, Inc, Tel:+1-847-538-5625, [email protected]. ColorChip,Inc, Ari Mizrachi,Director Marketing & Sales, Mobile:+972-54688823, Tel: +972-4-637-6667, Fax:+972-4-637-7307, [email protected]

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