AVIAN COMMUNICATIONS CLOSES $22 MILLION SECOND ROUND FINANCING

MARLBOROUGH, Mass - July 18, 2001 - Avian Communications, Inc., a provider of next-generation mobile networking infrastructure equipment, today announced it has completed a $22 million round of equity financing. New investors Argo Global Capital, Nokia Venture Partners, Wasserstein Ventures, YankeeTek Ventures, and Clarity Capital joined St. Paul Venture Capital, Avian’s first round investor. The company will use the new funding to grow aggressively to support product development through its scheduled customer trials.

With the closing of the financing round, Tom Wooters, Vice President and Partner of Argo Global Capital, and John Malloy, Managing Partner of Nokia Venture Partners, join Avian Communications’ Board of Directors. Vijay Rajamani, Vice President of Wasserstein Ventures joins the Board as an observer. "Avian Communications has all the ingredients we look for in an investment and we are very excited about the company's prospects in this fast growing wireless market space. Avian's products address real issues faced by our wireless operators as they add IP services to their wireless networks," said Tom Wooters, Vice President and Partner, Argo Global Capital.

"Avian's product fulfills a unique need in the Wireless IP marketplace. With its strategic business model and unique embedded technology, Avian Communications is well positioned to play an important role in the wireless infrastructure market space. We are very pleased to be part of this team," said John Malloy, Managing Partner, Nokia Venture Partners.

New Category of Advanced Intelligent Mobile Data Infrastructure Equipment

Avian Communications is building a new category of mobile data infrastructure equipment, called a Mobile Services Switching Platform (MSSP). This new network element will enable advanced intelligent mobile data services for wireless operators.

“Wireless operators today have long and well-established relationships with their infrastructure equipment vendors who are supplying them with the basic core elements,” said Raj Alur, CEO, Avian Communications. “Unlike these elements, which require a tight allegiance to the radio access network and existing wireless network; the MSSP is vendor independent and compatible with all existing networks.”

Avian’s MSSP provides a revenue-generating services base for wireless operators that will extend into 3G networks as well as into wireless LAN enhanced 4G networks. This new category is analogous to Service Switching Points, or SSPs, in traditional telephony networks which enabled advanced intelligent network services such as 800 numbers, 900 numbers, Caller ID and Caller Name. The MSSP category complements the investments and efforts of the incumbent service providers and existing equipment vendors.

"We are extremely pleased with our investment in Avian as well as the team the company has assembled to address this exciting new market and the addition of the new investors in this round substantially strengthens and adds to the powerful focus of the company," said Rod Randall, General Partner, St. Paul Venture Capital, and Chairman of Avian Communications' Board. "Avian's MSSP represents an important new category in the network infrastructure in the IP-ization of the network in the wireless domain."

“As operators prepare for the demands of next generation “always on” wireless networks, they face the mounting challenge of continuing the revenue growth based on the existing business model,” said Howard Anderson, Senior Managing Director at YankeeTek Ventures. “Avian solves this problem by providing the tools necessary for operators to monitor their networks, create advanced services and foster new business models.”