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Commonwealth Leads Series B for Crossbeam Systems

June 18, 2001 - Concord, MA

Crossbeam Systems, Inc. today announced a series of developments aimed at unleashing major improvements in the economics of data center operations. The company unveiled its breakthrough multi-gigabit network application platform architecture, its partner program involving market-leading Check Point Software Technologies Ltd. (NASDAQ: CHKP) and plans for partnerships with other software companies this year. Crossbeam recently secured two global service provider beta customers and closed its Series B financing, led by Commonwealth Capital Ventures, along with existing investors Matrix Partners, North Bridge Venture Partners and Charles River Ventures, bringing the total investment in the company to more than $30 million.

With this announcement, Crossbeam enters the data center market with the ability to break critical technical and business bottlenecks and enable the profitable delivery of application services. The Internet data center portion of the overall data center market is the fastest growing segment, projected to reach $75 billion by 2005, according to a recent report by Morgan Stanley Dean Witter. The enormous demand for hosted services equipment, expected to reach almost $25 billion in 2004 according to research firm IDC, has resulted in intense competitive pressures for Internet data centers to deliver multiple services profitably at optical speeds and on a massive scale.

""Crossbeam is highly focused in its mission to optimize network application service delivery and improve data center economics,"" said Stephen Justus, president of Crossbeam. ""Our system architecture is designed to break the bottlenecks associated with rapid deployment of new services, accessing content and application services at multi-gigabit speeds and achieving rapid returns on equipment investments.""