In the News...

Vancouver, BC September 3, 2002 - Greenstone Venture Partners today announced it has participated in a second round of financing for data centre systems developer Inkra Networks, one of Red Herring's Top 50 Private Companies from 2002. Inkra has operations in Vancouver, British Columbia and Fremont, California.

The total $30.1-million injection brings Inkra's capital commitment to $66.6-million over two financing rounds. Greenstone participated in both rounds along with Battery Ventures, Norwest Venture Partners, and Storm Ventures. Morgenthaler Ventures, which has funded companies including Apple Computer, Computer Associates, and NEXTEL, joined the second round.

"Inkra's Virtual Service Switch (VSS) products enable data centres to deliver hundreds of separate IP services with the same performance and integrity that used to require hundreds of dedicated applications, and at a fraction of the cost," said Greenstone partner Richard Osborn. "The VSS radically simplifies data centre operations, and have already caught the attention of the data centre industry. They allow data centres' network administrators to virtualize and integrate multiple IP functions, including firewalls, load balancers, SSL accelerators, and VPN systems. That allows data centres to increase IP services on demand, automate management processes, and reduce ongoing operating costs."

Inkra president and CEO Sanjay Dhawan said his company plans to use the second-round financing to expand worldwide sales, support, and business operations. He added since Inkra announced its VSS products in April it has secured a multi-million-dollar partnership with NEC System Integration, made a multi-million-dollar sale to SAVVIS Communications, and established distribution channels in Korea.

"This funding milestone confirms Inkra as the leader in virtual IP service solutions for the next-generation data centre, and takes the company's viability off the table," Dhawan said. "Inkra has made the transition from start-up and R&D to revenue-generation."

Dhawan said Inkra's VSS products are the only ones that allow application- and domain-specific customization within a single system, what Inkra called virtual racks. Inkra guarantees its VSS products with perform with strict security and fault isolation.

Osborn stated "Inkra is a perfect example of the substantial benefits and advantages progressive companies can obtain by operating cross border. With world class technical talent at a substantial cost advantage the Canadian operations of Inkra have given the company a distinct competitive advantage in the market. We're very happy to have played an integral part in making that happen - and look forward to helping other best in breed start ups do the same."

About Greenstone Venture Partners
Greenstone Venture Partners (www.greenstonevc.com) is a venture capital fund based in Vancouver, B.C. that targets early stage technology opportunities in Canada and the Western United States. The firm invests across data communications, Internet infrastructure, and wireless sectors. Greenstone partners with leaders of technology companies and investment groups in the U.S. and overseas, drawing on their expertise to create a unique advantage for the firms it finances. Partners include founders and senior executives of such world-class technology firms as Cisco, Electronic Arts, LSI Logic, PMC-Sierra, Rational, and Intel. Collectively, the Greenstone network has created more than $20-billion in shareholder value.

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