DragonVenture Led the Closing of $11.7MM Series C Investment for Erlang Technology, Inc. – a Leading Communications IC Solution Provider for Asia-Pacific System Vendors

Palo Alto, Calif. Mar. 17, 2003

DragonVenture, Inc., a premier cross-Pacific venture capital and consulting company, today announced the closing of the $11.7MM Series C investment for Erlang Technology, Inc. The DragonVenture led-syndicate includes, among several leading venture capital firms from Asia and the U.S., Asia-based JAFCO Asia and Authosis, Japan/Silicon Valley-based Ignite Group, Dallas-based Pacesetter Capital, and NEC Electronics Corporation headquartered in Japan.

Erlang has established a solid reputation and strong customer traction in the emerging Asian Pacific communications IC market based on a high level of reliability and consistency in its product delivery and support. Its core products, switch fabric chipsets, along with a menu list of vendor’s in-house system level solutions, are the heart of the modern communications equipment. Erlang has won the royalty of leading communications equipment manufacturers such as LG Electronics, Han A, and Paion in Korea, NEC Electronics Corporation in Japan, and Great Dragon Technology, ZTE, Beijing Capitel and Shanghai Baud in China.

"While both the funding environment and telecom market in the U.S. have been exceedingly difficult to high-tech companies, Erlang’s ability to consistently produce design wins and gain the trust of the customers in Asia through out this time truly impressed the investors,” said DragonVenture's Partner and Vice President of Technology, Edwin Yeh, who spearheaded the funding efforts on behalf of DragonVenture for Erlang’s Series C investment. “The reason why Erlang’s chipsets are high performing, low cost, and extremely reliable was partly because its engineering team, led by Dr. Paul S. Min, has worked together for over ten years and already succeeded in designing and deploying over five generations of switch fabric chips prior to Erlang. We, the investors, have no doubt that Erlang will emerge as a dominant communication IC supplier in Asia.”

The CEO of Erlang Technology, Inc. Dr. Paul S. Min further elaborates, "Erlang Technology, Inc. is excited about the successful closing of the Series C investment. We are fortunate to have several experienced and knowledgeable Chinese investors such as DragonVenture’s partners and Authosis’s chairman taking strong interest in us. For instance, DragonVenture’s Edwin Yeh led this round to a successful and over-subscribed closing and Authosis’s chairman, Mr. Danny Lui, who was also the co-founder of famous Legend Group in China, took it personally to become a board member of Erlang Technology, Inc. On top of that, together with NEC Electronics Corporation, a global leading ASIC foundry, we have JAFCO - the largest VC in Japan and Ignite Group that will be assisting us in the Japan market strategy. We, at Erlang Technology, to say the least, are very excited and looking forward to working with and tapping into the resources of these investors to further expand our business in the Asia Pacific region.”
 

About Erlang Technology, Inc.

Erlang Technology Inc. is a fabless semiconductor company that designs, develops and delivers leading-edge switch fabric components along with system level support for customers. The core team has been working together for over 10 years and had successfully developed 5 generations of switch fabric chips. The company currently markets the most stable and market proven switch fabric ICs. Erlang has recently gained strong customer traction and a number of design wins in the Asia Pacific region, especially in China, Korea, and Japan. For more information visit www.erlangtech.com

About DragonVenture, Inc.

DragonVenture Inc. is a premier cross-Pacific venture capital, consulting, mergers and acquisitions company specializing in bridging the U.S. and Greater China marketplaces. DragonVenture manages funds that invest in emerging companies in the areas of telecommunications, Internet infrastructure, IC & Semiconductor, and Linux. The company provides cross-Pacific consulting services and facilitates cross-Pacific strategic alliances and/or partnerships, and mergers and acquisitions through DragonVenture's M&A Fund. DragonVenture, Inc. is headquartered in Silicon Valley and also has a branch office in Beijing, China. DragonVenture is working closely with numerous U. S. firms on their China strategy while assisting a handful of Greater China companies to expand business horizons into North America. For more information about DragonVenture, Inc. visit www.dragonventure.com.