Dresden, London, New York - November 20th, 2000 - Systemonic, the Dresden-based wireless communication chip company, has today completed second round funding of USD30 million from an investment consortium led by Apax Europe IV, including Lehman Brothers, Robertson Stephens' Bayview 2000, LP, Atlas Venture and Krone mt. The funding will be used to expand the business into the US and Asia.

Founded in June 1999 by two leading electronics experts in wireless communication, Professor Gerhard Fettweis and Dr Michael Bolle, Systemonic has pioneered a highly flexible breakthrough technology in the form of its OnDSP™ platform aimed at the broadband wireless communication markets such as high-end telecommunications and internet content and video streaming.

Unlike traditional chip design where functionality is hardwired into the silicon, Systemonic's approach allows core functionality for broadband wireless systems to be realised in software layers on the chip. As a result significant flexibility is given, Systemonic being able to quickly support early or late changes in emerging wireless standards as well as provide simultaneous support for converging wireless standards. An additional benefit of Systemonic's approach to designing its DSP based Application Specific Standard Products (ASSPs) for broadband wireless systems is that the design time and production costs for chips are significantly reduced. Systemonic plans to ship first chipsets at the end of Q1 2001.

Dr Christian Reitberger of Apax Partners, the investment advisor of Apax Europe IV, commented: "Systemonic has developed a breakthrough technology that can be applied across many areas of the wireless semiconductor market - estimated to be worth $18 billion by 2004. The flexibility of the solution is extremely compelling for equipment providers facing the challenge of quickly changing standards. We are looking forward to supporting Systemonic in establishing leadership positions in each application area it is going to enter."

Systemonic's CEO commented: "We are delighted by the investment consortium that has been put together as it allows us to move aggressively into the US and Asia whilst at the same time consolidate our position in Europe. Flexibility is a key strength of our technology and our investors enable us to be fully flexible in our business development plans."

Focusing on new emerging wireless broadband standards, Systemonic's first product HiperSonic™ is the first chip on the market to be applicable for both the European HiperLAN2 and US IEEE 802.11a standards. - the company expects to ship chipsets at the end of Q1 2001.

Alexander Bruehl, principal at Atlas Venture, the first round lead investor in Systemonic, commented: "Professor Fettweis is a leading figure in DSP technology holding the Mannesmann Mobile Telecommunications Chair at the Technical University of Dresden. Likewise Dr. Michael Bolle is a recognised authority in digital audio broadcasting. Their involvement has enabled them to attract the best in talent for wireless system development from day one. We look forward to continue fostering Systemonic's world-class technology and are excited to support its globalisation through our international network. We are convinced of great technology potential at Europe's universities and look forward to build further successful businesses."

Systemonic's second round funding will be used for expansion into the US and Asia, growth of its European sales operation and acceleration of its product development - Systemonic's target customers are telecommunication companies focussed on third generation telecom systems, companies developing systems for the broadband wireless LAN markets, consumer electronic corporations developing wireless home network appliances and start-ups focused on upcoming wireless applications. Systemonic's revenues will be derived from the sale of chipsets as well as the sale and support of software development tools for chipsets to systems integrators.

Christian Reitberger of Apax Partners joins the Supervisory Board of Systemonic.

About Systemonic
Systemonic is a wireless communications platform provider that delivers complete Silicon System Solutions that power wireless data, video and voice networks across standards, across the world. Its flexible, re-configurable platform allows customers to bring wireless communications products that support multiple standards to market faster, with more features, lower power consumption and at a lower total cost of ownership.

In November 2000, Systemonic completed second round funding of USD 30 million from an investment consortium led by Atlas Venture and APAX Europe IV, including, Krone mt, Robertson Stephens' Bayview 2000, LP, and Lehman Brothers.

Systemonic was founded in 1999 after four years of research at the University of Dresden.

About Apax Partners
Apax Partners is one of the world's leading private equity investment advisory groups. It pursues a balanced equity portfolio strategy, investing in companies at all stages of development from start-up to buy-out. Founded in 1972 in the United States and in Europe, Apax Partners currently has thirteen offices worldwide and over $7 billion under management or advice on behalf of leading institutional investors. Some of Apax Partners Funds' recent investments in the Semiconductor sector include Dialog Semiconductors (IPO), ARC Cores (IPO), ISS, EZChip, and Butterfly VLSI (sold to TI). The group has investments in 250 companies worldwide. For further information on Apax Partners, please contact Siobhan Loftus (Tel: +44 207 872 6495) or Christian Reitberger (Tel: +49 89 99 89 09 16).

About Lehman Brothers
Lehman Brothers (NYSE:LEH), an innovator in global finance, focuses on serving the financial needs of corporations, governments and municipalities, institutional clients, and high-net-worth individuals worldwide. Founded in 1850, Lehman Brothers maintains leadership positions in equity and fixed income sales, trading and research, investment banking, private equity and private client services. The Firm is headquartered in New York, London, and Tokyo and operates in 44 offices around the world. For further information about Lehman Brothers' services, products and recruitment opportunities, visit our Web site at www.lehman.com.

About Atlas Venture
Atlas Venture is the leading international, early-stage venture capital firm investing in Internet, communications, and health and life sciences companies. With offices in Amsterdam, Boston, London, Menlo Park, Munich and Paris, Atlas Venture's investments are split evenly between the United States and Europe.

Founded in 1980, Atlas Venture manages five international funds, with $1.6 billion in committed capital. The Atlas Venture investment team is comprised of seasoned operating executives and career venture capitalists that have been deeply involved in the formation and development of more than 300 companies - from entrepreneurial startups to industry-leading enterprises - worldwide.

Recent Atlas Venture portfolio company IPOs include Actelion (SWX: ATLN), deCODE genetics (Nasdaq & Easdaq: DCGN), Exelixis (Nasdaq: EXEL), Modex Th?peutiques SA (SWX: MDXN), Orchestream Ltd (LSE: OCH), SpeechWorks International (Nasdaq: SPWX), and Variagenics (Nasdaq: VGNX). Recent acquisitions of Atlas Venture portfolio companies include Cerulean Technology (Aether), eGroups (Yahoo), OnDisplay (Vignette), Trading Dynamics (Ariba), Omnia Communications (CIENA), RightPoint Software (E.piphany), and T.sqware (GlobeSpan). (For more information, see www.atlasventure.com.)

About Krone mt
Krone mt is a venture-capital service company with a comprehensive range of services, including marketing, financial and administrative support. The founder and Managing Director of Krone mt is Klaus Krone, who had previously developed the former family owned concern Krone AG into a leading global telecommunication company. Klaus Krone has built up Krone mt with a team of qualified specialists to enhance the business potential and viability of our venture partners. Krone mt is particularly involved in new companies in the telecommunication and information technology business fields. Krone mt provides money and offers success & profit management services. This service range includes consultancy in developing a competent business plan as well as extensive operating support for partners and clients from product development to marketing.

About Robertson Stephens
Robertson Stephens, Inc., together with its international affiliates, ("Robertson Stephens") is the leading full-service investment bank focused exclusively on growth companies. The firm provides a comprehensive set of investment banking products and services, including equity underwriting, sales & trading, research, M&A advisory, convertible securities, private capital, equity derivatives, and corporate and executive services. Robertson Stephens has offices in San Francisco, Boston, New York, Palo Alto, Chicago, Atlanta, London, Munich and Tel Aviv. Bayview 2000, LP is an employee venture fund of Robertson Stephens, Inc.