Jungo Software Technologies Inc. Announces $7 Million in Strong Round of Venture and Strategic Financing

Sunnyvale, Calif., April 18, 2001 - Jungo Software Technologies Inc., a leading provider of residential gateway software and technologies today announced, it has secured $7m in its second round of financing. The round was lead by TeleSoft Partners of San Mateo, joined by Infineon Ventures and the Intel Communications Fund. The Infineon and Intel Communications Fund investment in Jungo was made in support of Jungo's commitment to develop an optimized version of its OpenRG platform for Infineon's next generation broadband access chipset and for Intel's Internet Exchange™ Architecture (IXA).

Jungo develops the residential gateway operating system called OpenRG - a Linux based software platform which enables Original Equipment Manufacturers (OEMs) to bring broadband Customer Premises Equipment (CPE) such as residential gateways, SOHO gateways and Integrated Access Devices (IADs) to market quickly. Jungo's OpenRG is embedded into DSL modems, cable modems and other broadband access devices to provide complete residential / SOHO gateways.

"We are pleased to receive this investment from Infineon Ventures and the Intel Communications Fund. The funding from these strategic investors will help Jungo focus on the market requirements and development," said Ofer Vilenski, president and CEO of Jungo. "We are also pleased to see TeleSoft Partners as a new member of the Jungo family. TeleSoft's focus and understanding of the telecommunications market will help Jungo strive for the market leader status. The investment capital will be used to help fund an expansion in our marketing and R&D efforts, enabling us to realize the potential of our current products and to carry out our roadmap."

"TeleSoft is excited to add Jungo to our portfolio of advanced technology companies focused on communications," said Arjun Gupta, TeleSoft's CEO. "We believe that Jungo's vision, coupled with its technological depth and abilities will enable Jungo to establish itself as a leading software platform vendor for broadband integrated access devices."

Jungo's plans for the funds include the continuing development of the software technologies and IAD products as per Jungo's roadmap, as well as ramping up the sales and marketing force that will help bring Jungo's products to wide market acceptance.

"We regard broadband access as one of the crucial segments within the communication market," said Michael Hochholzer, Investment Partner of Infineon Ventures. "We are excited about Jungo's technology providing a comprehensive residential gateway software platform enabling a variety of applications on a broad infrastructure spectrum."

"Jungo's software products are enablers for the broadband access market," said John Hull, Director of the Intel Communications Fund. "We welcome the opportunity to work with Jungo as both companies share a vision of providing the time and cost saving solutions to the broadband access market."

"Software-based solutions for residential gateways, such as those offered by Jungo, are increasingly important as a wide host of players - including hardware developers and service providers - are under pressure to reduce both their time-to-market and overall costs," said Kurt Scherf, vice president of research for Dallas-based Parks Associates. "This solution is part of the key to making a wider variety of services applicable to a growing number of users."

About Jungo

About TeleSoft Partners
TeleSoft Partners (www.telesoftvc.com) is a venture capital firm focused on next generation communications and high technology companies. TeleSoft manages capital commitments of $700+ million and has three offices in Silicon Valley, Europe, and Israel. TeleSoft focuses on nine core segments: Carrier & Enterprise Networks, Routing & Switching, Server & Storage Architecture, Optical Networking, Integrated Access, Middleware & Services, Software Applications, Broadband Wireless, and Components & Tools. To date, TeleSoft has invested in 44 portfolio companies, including 8 acquisitions and 3 IPOs. TeleSoft's value added network includes its General Partner Team, Senior Industry Executive Network, Corporate Partners, and Portfolio Companies.

About Infineon Ventures
Infineon Ventures GmbH, the corporate venture capital arm of Infineon Technologies AG with offices in Munich (Germany), San Jose (California) and Boston (Massachusetts), today manages a portfolio of 29 start-up companies. Since October 1998 up to date, venture capital of approx. 90 million Euro has been spent in form of minority equity investments. The investment activities are global in region and focus in industry sector on early-stage and start-up companies in microelectronics and communications. More information is available at www.infineonventures.com.

About Intel Communications Fund
The $500 million Intel Communications Fund invests in companies supporting Intel's key programs and initiatives in voice and data communications, as well as wireless communications and computing efforts. The fund, which makes minority equity investments of typically less than $10 million, is focused on companies developing solutions based on CT Media™, Intel® Internet Exchange Architecture, Intel® Xscale™ Microarchitecture and Intel® Personal Internet Client Architecture. The fund, created in 1999, is managed and controlled by Intel. For more information, visit www.intel.com/capital/.

About Intel Capital
Intel Capital, Intel's strategic investment program, focuses on making equity investments and acquisitions to grow the Internet economy, including Internet infrastructure, content and services in support of Intel's strategic interests. In Israel, Intel Capital invests through Intel Atlantic Inc., a subsidiary of Intel Corporation. For information, visit www.intel.com/capital.

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