 |
 |
 |
 |
 |
|
SOMA Networks Signs $10 Million Financing Agreement with Bank of America Corporation Leading Developer of Last-Mile Broadband Solutions Prepares for Large-Scale Deployments San Francisco – January 27, 2003 – SOMA Networks today announced that it has finalized a $10 million financing agreement with Bank of America Corporation. The financing will support SOMA Networks' current efforts to ramp up its operations in anticipation of large-scale commercial deployments. After successfully completing rigorous field trials and launching initial deployments of its next-generation wireless broadband solution in the United States and Japan in 2002, SOMA Networks expects to enter into one or more major deployment contracts in the second quarter of 2003. The financing from Bank of America builds on the more than $100 million that SOMA Networks has already raised over the past four years. The financing agreement is a significant step in the strategic relationship between Bank of America and SOMA Networks. SOMA Networks chose Bank of America because of its broad capabilities in investment banking and capital raising, along with traditional banking services such as working capital and trade financing. Both capabilities will be important to SOMA Networks as it prepares for rapid deployment of its last-mile solution in multiple domestic and foreign markets. "We are enthusiastic about the potential of the SOMA technology to meet the business needs of a wide range of telecom service providers," said Hadley Ford, Managing Director and Head of Telecom & Enterprise Networking at Banc of America Securities. "We look forward to working with SOMA to help it meet its substantial and diverse capital needs resulting from a broad deployment of its technology and are excited about our relationship with the company." "With support from Bank of America, SOMA Networks is poised to enter the large-scale deployment stage of operations from a position of great strength," said Yatish S. Pathak, president and CEO of SOMA Networks. "Bank of America has demonstrated their confidence in SOMA Networks' technology, people, and execution capability. As we scale up to handle major deployments, we look forward to having a strategic relationship with Bank of America and the benefit of their experienced financial counsel." Overcoming the technical and economic challenges of earlier systems, SOMA Networks has designed the only fully converged broadband data and carrier-grade voice solution, offering service providers higher revenues and lower capital and operating costs. This solution, known as Amosphere™, enables service providers to quickly and profitably roll out high-speed Internet access and carrier-grade voice services for residential and small office markets in urban, suburban, and rural areas. Key features of Amosphere include non-line-of-sight access, subscriber self-installation and self-provisioning capabilities, industry-leading cell coverage, multi-megabit data throughput rates, landline voice service quality, true multi-layer quality of service, and a sophisticated network management system. Service providers that have publicly announced Amosphere deployments include NTT Communications, which launched its first market in Kanazawa City, Japan, last summer; AlwaysOn Network, which has experienced overwhelming success in its initial commercial deployment in Oregon; and Zephyr Communications, which will roll out service in Chico, California, in early summer 2003. About SOMA Networks: Media Relations Contacts: |