Voltaire Secures $15 Million in Funding

Voltaire Secures $15 Million in Funding

High Growth Grid Computing Market Drives New Investment; Brocade Co-Founder Paul Bonderson Joins As New Investor

BILLERICA, Mass. - June 6, 2005 - Voltaire, the leader in interconnect solutions for high performance grid computing, today announced that it has closed $15 million in financing. Baker Capital, Pitango Venture Capital and Vertex Venture Capital led the oversubscribed round. Existing investors Platinum Venture Capital, Tamir Fishman Ventures, and The Challenge Fund also participated. Among the new investors is Paul Bonderson, co-founder and former Vice President, Engineering of Brocade, who also contributed to the round.

"The market opportunity for InfiniBand-based solutions is growing rapidly, driven by the shift to grid computing in the enterprise and the high performance computing markets," said Ashley Leeds, partner, Baker Capital. "Voltaire is a leader in this market, having established successful partnerships with critical vendors such as HP, IBM, SGI, Sun, Apple, NEC, and Hitachi, and achieved solid customer successes. These were the important considerations underlying our continued support for the company."

Voltaire provides grid interconnect hardware and software solutions based on InfiniBand technology that enable high performance applications to run on distributed server, storage and network resources. Voltaire multi-service switches offer integrated InfiniBand, GbE and Fibre Channel connectivity and are used for building high-performance clusters and grids ranging from tens to thousands of nodes. Voltaire's customer deployments represent many of the largest grids and supercomputers in the world, including NASA Ames, Sandia National Laboratories, Lawrence Livermore National Laboratories, Los Alamos National Laboratories, CERN, and India's Institute of Genomics and Integrative Biology.

"Voltaire's multi-service switches for grid computing address the hottest trends in the data center today," said Paul Bonderson, Voltaire board member and co-founder of Brocade, who joined as a new investor for Voltaire's latest round of financing. "As grids and clusters evolve on commodity elements, the value and intelligence is moving to the switching technology. Voltaire has demonstrated a real talent for delivering innovative, intelligent solutions that address customers' complex computing challenges."

Voltaire has experienced rapid growth during the last year in terms of revenue, customer and OEM partnerships, as well as through the addition of talented industry veterans to the company. Moving from direct sales to a channel-based model, the company implemented successful reseller and OEM agreements with leading vendors IBM, HP, SGI, and Apple, in addition to its existing joint sales relationships with Sun, NEC and Hitachi. Moreover, Voltaire recently expanded its executive management team with the appointments of former 3Com executive Patrick Guay as vice president of marketing and Daniel Klein as vice president of operations. The company also doubled the size of its OEM sales and customer support organizations.

"This investment validates that our strategy and ability to lead in this market is right on target," said Ronnie Kenneth, CEO and chairman, Voltaire. "We intend to use this new financing to grow the business, support sales and delivery through our OEM partners, and expand our marketing and customer support initiatives. We believe that the new funding together with the company's existing cash will take us to breakeven."

About Voltaire
Voltaire is the leader in interconnect solutions for high performance grid computing. Voltaire's InfiniBand-based interconnect solutions deliver significant return on investment to the data center by improving the performance and utilization of clustered databases, shared servers and storage. For HPC customers, Voltaire leads the industry with the largest switch to support clusters scaling from hundreds to thousands of nodes. With business headquarters near Boston, Massachusetts, Voltaire is certified by the IBTA's Integrator's List. More information about Voltaire is available at www.voltaire.com or by calling 1-800-865-8247.