Venture capital firms Earlybird and Target Partners today announced an investment of five million Euro in MergeOptics GmbH, a maker of highly-integrated fiber optic components and subsystems.

Munich/Berlin - January 22, 2002. Lead investor Earlybird, with offices in Hamburg, Munich and Palo Alto, and Target Partners, headquartered in Munich, have invested a total of five million Euro in Berlin-based MergeOptics GmbH.

MergeOptics develops highly-integrated components and subsystems for high-speed data transfer. The MergeOptics systems, which are among the leading products in this sector worldwide, are based on the Ethernet standard and allow for transmission rates of more than 10 Gigabits/second. The newly-acquired capital will be used to finance further development of the company’s products and to enable international growth.

Target Partners and Earlybird see great promise in the fiber optic communications sector and view MergeOptics as an emerging leader in this field.

Waldemar Jantz, a partner with Target Partners, elaborates on the rationale behind this investment, “Fiber optic data transfer will enable significant growth opportunities in the coming years. In particular, this growth can be expected through the construction and expansion of regional networks or ‘Metronets.’ MergeOptics products are optimally positioned to allow it to capitalize on this growth.” The company has patents pending on its proprietary development and production process for the highly-integrated components that enable high-speed transmission.

Dr. Christian Nagel, a partner with Earlybird, also predicts growth for the company, “The MergeOptics team brings together some of the world’s leading experts in fiber optic and highly-integrated components. We see this, in combination with the industry’s promising market, as offering extremely positive prospects.”

Dag Neumeuer, CEO of MergeOptics, views the injection of capital as a key step in the company’s development, “Allied with Earlybird and Target Partners, MergeOptics is lucky to have very experienced venture capitalists at its side, something that is not always the case here in Germany. With the support of both investors, we will become a leading manufacturer of highly-integrated fiber optic components. In difficult times, the financial backing of two such respected and experienced VCs is a testimony to the quality and promise of MergeOptics.”

Ernst & Young assisted Target Partners with the financial due diligence during this round of financing, while legal counsel was provided by SJ Berwin for Target Partners, by Pöllath + Partner (P+P) for Earlybird and by Simmons&Simmons for MergeOptics.


For more information about MergeOptics GmbH, please contact:
Marion Schink, Am Borsigturm 17, 13507 Berlin, Germany
Tel.: +49/30/43038-204, Fax: +49/30/43038-209
Marion.Schink@mergeoptics.de

For more information about Earlybird, please contact:
Daniela von Wedel, Van-der-Smissen-Str. 3, 22767 Hamburg, Germany
Tel.: +49/40/4329 41-0, Fax: +49/40/4329 41-29
vonwedel@earlybird.com

For more information about Target Partners, please contact:
fischerAppelt Kommunikation München GmbH
Michael Brauns, Tassiloplatz 7, 81541 Munich, Germany
Tel.: +49/89/747466-22, Fax: 49/89/747466-66 michael.brauns@fischerAppelt.de


ABOUT MERGEOPTICS:

MergeOptics GmbH, founded in Berlin, Germany, in September 2000, develops compact, highly-integrated components for the rapidly-growing high-speed fiber optic data transfer market. The company integrates optical components (lasers, modulators and photo diodes) with high-frequency electrical circuits to create compact modules with standardized optical and electrical interfaces. MergeOptics products thus connect the equipment in the switching points of the communication networks to the glass fiber transmitting information throughout the globe. MergeOptics expects its products to set new standards both of integration and of data transfer speed. Thanks to partnerships with several leading German universities and research facilities, the company uses existing technology to develop, produce and market innovative commercial products. For more information, please visit the company’s website at http://www.mergeoptics.com.

ABOUT EARLYBIRD:

Earlybird is an international venture capital fund with about $300 million under management and investment focus on information technology, telecommunications and healthcare. With offices in Europe (Hamburg, Munich) and the US (Palo Alto), Earlybird is well positioned to take advantage of international opportunities and to assist its portfolio companies to gain access to the international market place and financial resources. Earlybird's investment professionals have extensive finance and start-up operating experience and actively support portfolio companies. In addition, a network of experienced industry specialists serves on the Earlybird advisory board and assists Earlybird and its portfolio companies in providing strategic advice and operational support. Additional information on Earlybird can be found at http://www.earlybird.com.

ABOUT TARGET PARTNERS:

Target Partners is an established venture capital firm with headquarters in Munich, Germany, that focuses on strategic investments in the IT industry. The company’s close-knit management team draws on significant IT management, venture capital and entrepreneurial experience, which enables them to advise their clients in a broad spectrum of areas. The Target Partners staff have expertise in the development and marketing of products and services, the structuring and growth of organizations, the implementation of rounds of financing, as well as the planning and implementation of corporate IPOs in Germany and in the United States.
The fund’s available assets of 112 million Euro are to be invested in young companies, generally in the first or second round of financing. Investors include DZ Bank and a number of additional European and American institutional investors. Target Partners enjoys an extensive network of contacts in the IT and venture capital industries in both Europe and the United States. For more information, please visit the company’s website at http://www.targetpartners.de.