MILPITAS, Calif., Sept. 8, 2003 (PRIMEZONE) -- Kineto Wireless (www.kinetowireless.com), a key innovator and leading supplier of Mobile over Wireless LAN (MoWLAN) solutions, today announced the company has secured $24 million in institutional financing, led by 3i, Sutter Hill Ventures and Venrock Associates. Mitsui & Company Venture Partners, SeaPoint Ventures and Storm Ventures also participated in the financing. Kineto will utilize the funds for continued product development, accelerating marketing efforts and expanding global operations toward the upcoming deployment of its solution for the MoWLAN market.
The use of mobile services within the home and office continues to increase. Recent studies indicate the average subscriber now uses their mobile phone for nearly 20% of their total home calling. These studies also indicate that indoor mobile usage will accelerate when mobile quality and pricing are more comparable to that of landline service. MoWLAN solutions enable the seamless delivery of high-quality mobile voice and data services over WLANs located within homes, offices and hot spots at significantly lower cost than existing 2.5 and 3G mobile network technologies. As a result, subscribers can now use their mobile phone as their main communications device, and fixed and mobile service providers can maximize their revenue potential and profitability from their subscriber's use of the mobile phone as the only phone.
"With the addition of these funds, we are well positioned to continue our innovation and leadership position in the Mobile over Wireless LAN technology market," said John O'Connell, president and chief executive officer, Kineto Wireless. "We are excited to be partnering with such world-class institutional investors as we bring our solution to market."
"As a leading global investor in wireless technology, we evaluate hundreds of investment opportunities in the wireless industry. It is our position that Kineto is well situated to be the leader in the Mobile over Wireless LAN space," said David Aslin, a director at 3i. "As a company offering truly compelling value propositions for both carriers and subscribers, Kineto clearly stands-out."
"We believe Kineto is well positioned to be the driving force in the emerging Mobile over Wireless LAN market," said Jim Gaither, a managing director at Sutter Hill Ventures. "The company is set to deliver a truly innovative and revolutionary solution into the mobile industry."
"Kineto's technology is poised to bring about a fundamental change to the communications landscape," said Eric Copeland, a general partner at Venrock Associates. "We are pleased and excited to work with such a phenomenal team, and are looking forward to the results our investment will help to achieve."
About Kineto Wireless
Kineto Wireless develops solutions enabling service providers to exploit the discontinuities resulting from the deployment of Wireless LAN technology. Experts in mobile network, WLAN and VoIP technologies, Kineto has developed the industry's leading Mobile over WLAN (MoWLAN) solution. MoWLAN solutions enable the seamless delivery of high-quality mobile voice and data services over WLANs located within homes, offices and hot spots at significantly lower cost than existing 2.5 and 3G mobile network technologies. As an international company, Kineto Wireless does business with leading service providers, handset suppliers and infrastructure providers worldwide. For more information about Kineto Wireless, please visit www.kinetowireless.com.