Sipera Systems Secures $6.3 Million in Venture Funding

Richardson, TX, February 4, 2005 — Sipera Systems Inc., a leading developer of scalable security appliances for converged networks, today announced that it has successfully completed a $6.3 million Series A round of venture financing, led by Austin Ventures and Star Ventures. The funds will be used to expand Sipera’s product development and increase its marketing and sales initiatives. Venu Shamapant, general partner, Austin Ventures and Jeanne Bayless, managing partner, Star Ventures will join the Sipera board of directors.

“We are extremely pleased to have the endorsement of two industry notable investment firms, Austin and Star, who have tremendous experience in the convergence space” said Krishna Kurapati, Sipera’s Founder and CEO. “The funding has certainly empowered us to accelerate our efforts of getting our products into commercial use by the latter part of 2005.”

“Convergence of networks and services pose multiple and unique security challenges and we believe that Sipera is well positioned to take advantage of this emerging need,” said Mr. Shamapant. “This is a critical and growing problem just now being recognized. Sipera has developed a breakthrough solution to a huge problem that nearly every enterprise and provider faces and needs today,” Jeanne Bayless added.

Sipera’s SaVoN ä security appliance for converged networks will be generally available in the latter half of 2005.

About Sipera Systems

Sipera Systems is headquartered in Richardson , Texas , with a Development center in Hyderabad , India . The company delivers scalable, carrier-grade, comprehensive security systems for protection of session based real-time IP applications such as VoIP, Video & Multimedia. Sipera Systems SaVoN™ family of products deliver comprehensive VoIP security by adapting the best practices of internet security and also going well beyond by using unique, sophisticated techniques such as VoIP protocol misuse & anomaly detection, Behavioral learning based anomaly detection and Voice SPAM detection to protect VoIP networks. These new techniques leverage Sipera Systems' deep knowledge of VoIP protocols and network architectures, internet security, statistical modeling and expert learning systems. Sipera's products have been in development since late 2003 and will be generally available in late 2005. For more information about Sipera Systems, visit us online: www.sipera.com . Information about Austin Ventures and Star Ventures can be obtained online at: www.star-ventures.com and www.austinventures.com

About Austin Ventures

Austin Ventures has been working with talented entrepreneurs to build valuable companies since 1979. With $2.4 billion under management, AV is the most active venture capital firm In Texas, and one of the most established in the nation. With a focus on enterprise software, computer and communications hardware, and business services, Austin Ventures invest at all stages of company development, from $100,000 “planned experiments” to $50+ million investments in management buyouts. For more information, visit www.austinventures.com.

About Star Ventures

STAR Ventures (STAR) is an global venture capital company that invests in early-stage, high-tech companies in Israel , Germany , and the United States . STAR ( www.star-ventures.com) focuses on companies that are already active internationally or are preparing to establish international business activities. STAR currently holds close to $1 billion ( U.S. ) under management, and has invested in more than 150 companies, 33 of which are traded on the NASDAQ stock exchange in New York , and the Neuer Markt in Frankfurt . The focus of STAR's investment interest is information technologies, with an emphasis on communications. Additional investment areas include medical devices, enterprise software, Internet infrastructure, and industrial technologies. STAR is headquartered in Munich , Germany , with offices in Herzliya , Israel , and Dallas , USA .