T-Networks and ASIP Merge to Form Apogee Photonics and Raise $9.7M in Additional Financing

Somerset, N.J. and Allentown, P.A., July 26, 2005 - Industry-leading optical component companies ASIP, Inc., and T-Networks, Inc., today announced the companies are merging into a newly formed company called Apogee Photonics, Inc., and have secured $9.7 million in new financing. Existing ASIP and T-Networks investors participated in the round including Atlas Venture, BlueRun Ventures, Finaventures, Intel Capital, Redpoint Ventures, and TL Ventures.

Apogee Photonics provides advanced fiberoptic components that offer a high-level of integration with dramatically reduced complexities and costs. Existing and future customers will benefit from a greatly expanded product portfolio that uses hybrid and monolithic integration technologies to create highly functional components, allowing simplified design and production of communication systems.

Mike Decelle, the former CEO of ASIP, has been named CEO of Apogee Photonics. Decelle said, "This merger brings together critical, complementary technologies and products with industry-leading technical expertise, a seasoned management team, and solid customer and revenue bases. The result of the merger and the financing is a well-positioned, well-funded organization able to lead the market in delivering innovative, cost-effective transmission solutions."

"This investment demonstrates our strong confidence in Apogee's technology, blue-chip customer traction and management team," said Jonathan Ebinger, General Partner, BlueRun Ventures. "By combining each company's best-of-breed technology and product offerings, Apogee will be able to address all segments of the 10Gb/s fiberoptic market, from very short-reach datacom links to high-performance, DWDM transport networks."

Apogee Photonics already offers the broadest range of cooled and uncooled 10Gb/s laser sources, serving markets from 300-meter multi-mode (10GBASE-LRM) to 10Gb/s DWDM Long Haul. In addition, Apogee is offering the market leading active optical components such as lasers diodes, semiconductor optical amplifiers and gain modules, optical receivers and high-speed modulators.

"Both ASIP and T-Networks have innovative technologies and complementary strengths that will allow Apogee to expand its product and customer base and provide solutions that integrate the source, modulator and amplifier," said Tom Hausken, Director of Photonic Research at Strategies Unlimited. "The 10G transceiver space is most the promising opportunity because of the combination of high growth and the premium that comes with the higher performance at that rate, and Apogee is well positioned there."

About T-Networks, Inc.:
T-Networks, an ISO9001 registered, privately held corporation, designs, develops, and produces integrated Indium Phosphide solutions for optical transmission systems that exceed the distance-extinction-power (DEP) product for other optical semiconductor technologies. Currently, T-Networks is providing solutions including a wide variety of cooled and uncooled products for 10Gb/s and 40Gb/s transmission to several Tier 1 system OEMs and module vendors. Information on T-Networks and its products is available through its Web site at www.tnetworksinc.com .

About ASIP, Inc.
ASIP, headquartered in Somerset, N.J., is a leader in the development of advanced photonic integrated circuits, including high-speed laser sources and high-sensitivity photodetectors at both 10Gb/s and 40Gb/s. ASIP is the first company to provide integrated lasers at 10Gb/s transmission rates without requiring the use of thermoelectric coolers. These lasers are enabling the rapid deployment of 10Gb/s optical technology throughout the communications industry. The company was founded in July 2000 based on several years of research and development at Princeton University. ASIP's Asymmetric TwinGuideTM (ATG) technology is a highly-scalable platform for monolithic photonic integration and delivers unprecedented levels of functional integration, low cost, and world-class optical performance. For more information, customers may visit ASIP's Web site at www.asipinc.com

Information on Apogee and its products will be available through its Web site at www.ApogeePhotonics.com.

Contacts:

Apogee Photonics
Aaron Bond
VP Marketing and Business Development
610-289-5040x1964
Aaron.Bond@apogeephotonics.com

Cathy Caldeira
Metis Communications
207-767-2186
cathy@metiscomm.com