Closing On $6.3M, Sipera Names New CEO

Richardson, Texas, - June 15, 2005 - Sipera Systems Inc., a developer of voice-over IP security products, said that it has closed on $6.3 million in a first round of venture capital.

Sipera has also named Seshu Madhavapeddy president and chief executive.

Austin Ventures and Star Ventures co-led the Series A round, which closed in February. The money will be used to complete development of Sipera's products.

The company's security systems, set for release in late 2005, are designed to protect session-based, real time IP applications such as voice-over IP and video.

"VOIP is becoming a reality in a big way..but as you deploy voice communication, this opens up the network for new kinds attacks," said Madhavapeddy.

The company will begin beta trial with customers in July, and will target both enterprise and carrier networks - both wireline and wireless.

Madhavapeddy served most recently as co-founder of Spatial Wireless, which was acquired by Alcatel in 2004 for $300 million. Before Spatial, he was an entrepreneur-in-residence at Austin Ventures. Earlier in his career, Madhavapeddy worked for Nortel Networks Corp., where he served as director of product management and marketing for Nortel's wireless Internet product portfolio.

Madhavapeddy joins Austin Venture Partner Ben Scott, company founder and Chief Technology Officer Krishna Kurapati, Austin General Partner Venu Shamapant, and Star Ventures Managing Partner Jeanne Bayless on the company's five-member board.

The company will begin fund-raising for a Series B round in mid-2006, Madhavapeddy said.

Formed in 2003, Sipera is based in Richardson, Texas, and has development offices in Hyderabad, India.
The company has 30 employees, and will grow to roughly 50 by the end of the third quarter.
http://www.sipera.com