San Francisco, California – April 11, 2005: Yipes Enterprise Services, Inc., the leading global provider of managed, end-to-end Ethernet solutions for enterprise customers, today announced a series C round of funding of $24 million led by San Francisco-based Crosslink Capital, along with existing Yipes’ investors Norwest Venture Partners, JPMorgan Partners, LLC and Sprout Group, a venture capital affiliate of Credit Suisse First Boston. 

 

Yipes said the new round of funding exceeds the Company’s financial requirements to reach positive cash flow in 2006.  In total, Yipes has raised nearly $94 million since July 2002.

 

Yipes provides uniquely scalable Ethernet services in the major metros in the U.S. and London, U.K.  Additionally, Yipes has interconnected its metros using its MPLS-enable backbone to offer national and global area network services. 

 

During the past two years, Yipes has tripled its customer base to more than 600 customers across a broad set of industries, including finance, legal, healthcare, education, media, high-tech and government.  It provides service to more than 30 financial exchanges and trading platforms and 20 percent of the largest law firms in the U.S.  The Yipes network has more than 14,000 fiber route miles and can reach more than 2,500 buildings via its Ethernet-over-fiber network and partnerships it maintains with other carriers.

 

“We are thrilled about the opportunity to join Yipes at a very exciting time.  The global market for Ethernet Services is growing at more than 30 percent, making it one of the fastest growing sectors in the telecom industry.  Yipes’ real world experience in managing large Ethernet networks and its high customer satisfaction rating position the company exceptionally well as Ethernet Services enter the mainstream market,” said Gary Hromadko, venture partner for Crosslink Capital and new Yipes board member.

 

“Yipes continues to lead the high growth Ethernet Services market with innovative solutions and experience,” said Promod Haque, chairman of Yipes and managing partner, Norwest Venture Partners.

 

"This round of funding is a clear validation of our recent growth and our strategy in the metro-to-global Ethernet Services marketplace," said John Scanlon, chief executive officer of Yipes. "This round allows us to comfortably reach profitability and positive cash flow while providing new flexibility in planning for long-term success, including the selective acquisition of assets. We are extremely well positioned to serve the mission-critical needs of the enterprise customer -- both today and in the years to come. Yipes is strong and getting stronger, with the resources necessary for sustained and service-driven growth in our target markets."

 

About Yipes Enterprise Services, Inc.

 

Yipes Enterprise Services, Inc. is the leading global provider of managed, end-to-end Ethernet solutions for enterprise customers. Yipes offers a uniquely scalable suite of networking services that combine the speed, simplicity and cost effectiveness of native Ethernet with Yipes proprietary bandwidth-on-demand functionality. Yipes provides optical Ethernet services in and across major metropolitan markets throughout the United States and the UK including: New York, Los Angeles, Washington DC, San Francisco, Chicago, Philadelphia, Dallas, Houston, Seattle, Denver, San Diego and London.

 

About Crosslink Capital

 

San Francisco-based Crosslink Capital invests in companies at every stage - from seed to pre-IPO to PIPE offerings. Crosslink matches each portfolio company with a senior level partner dedicated to the company/industry and engaged in day-to-day management activities.  The size of Crosslink’s investments ranges from $7 to $15 million per company over multiple rounds.  

 

Crosslink's professional network is a powerful ally for portfolio companies. It includes a Technical Advisory Committee, comprised of Chief Technology Officers, Chief Information Officers and others in charge of technology direction at a number of Fortune 500 companies including APL, Charles Schwab, Fireman's Fund Insurance, MetLife, Peoplesoft, Sprint PCS and Wells Fargo. It also includes CEOs and senior executives at public technology companies, technology entrepreneurs and a long list of service professionals from lawyers to public relations professionals and recruiters. These advisors and consultants to Crosslink, are investors in the firm’s funds, and are individuals whose companies Crosslink has backed in the past. All have a vested interest in helping portfolio companies. Their contributions are essential to Crosslink's ability to add real and lasting value.

 

About Norwest Venture Partners

 

Norwest Venture Partners (NVP) has actively partnered with entrepreneurs to build significant businesses for more than 44 years. NVP focuses on early stage investments in information technology including: semiconductor and components, systems, software, services and consumer/Internet technologies. The firm currently manages more than $1.8 billion in venture capital out of its office in Palo Alto, California, USA.

 

NVP has funded over 350 companies since inception. Recent NVP transactions include Airespace (acquired by Cisco Systems), Resonext Communications (acquired by RF Micro Devices), Spinnaker Networks (acquired by Network Appliance) and Winphoria Networks (acquired by Motorola). NVP has also funded such market leaders as Actel Corporation, Brocade Communications, Cerent (acquired by Cisco Systems), Documentum, Extreme Networks, Forte Software (acquired by Sun Microsystems), PeopleSoft and Tivoli Systems (acquired by IBM).

 

About JPMorgan Partners

 

JPMorgan Partners, LLC ("JPMP") is a leading private equity organization. Its primary goal is to build a diversified portfolio of investments in middle-market buyouts, growth equity and venture in the United States and Europe, and across its five core industry segments. JPMP complements this strategy with focused efforts in emerging markets in Latin America and Asia. Gluing this strategy together is the global integrated network, which enables JPMP to draw on expert resources residing within JP Morgan Chase, its extensive portfolio, and worldwide contact network to source attractive opportunities and manage its investments.

 

As of December 31, 2004, JPMP has approximately $13 billion in capital under management. With approximately 95 investment professionals, JPMP invests globally throughsix principal offices. JPMorgan Partners is the private equity arm of J.P. Morgan Chase & Co., a leading global financial services firm with assets of $1.1 trillion and operations in more than 50 countries. Other prominent institutions and individuals are also investors in JPMP.

 

About the Sprout Group

 

A venture capital affiliate of Credit Suisse First Boston, the Sprout Group is one of the oldest and largest sources of private equity capital for growing companies. Established in 1969 as a venture capital affiliate of Donaldson, Lufkin & Jenrette, it has managed 12 major investment partnerships totaling more than $3.5 billion in committed capital.

 

Sprout is one of the few venture firms in the country affiliated with a leading investment bank. This unique relationship provides it with access to a broad spectrum of resources and complements the firm’s activities as a venture capital investor.

 

Since raising its first venture fund of $12 million more than 30 years ago, Sprout has invested in more than 350 companies whose combined revenues now exceed $50 billion. Its current fund, Sprout Capital IX, L.P., totals $1.1 billion.

 

Contact:
Keao Caindec
Vice President, Marketing
Yipes Enterprise Services, Inc.
415 901 2203 phone
kcaindec@yipes.com