SOUTH PLAINFIELD, NJ --(PR Newswire)--, January 5, 2005 - Kodeos Communications Inc., a leading provider of 10 Gbps enhanced-performance optical subsystems, announced today that it has secured an additional $6M in equity financing from Highland Capital Partners and Jerusalem Venture Partners (JVP). The company will use the additional investment to advance its market leadership globally, ramp up production and continue to develop market-leading products. To date the company has raised a total of $24 million.

"Kodeos has met its product and market milestones, launching its Marathon line of transponders for longer span distance and securing early design wins and orders from target accounts, worldwide," says John Wyatt, CEO. "The company is now ramping up production to meet initial demand from its customers. I am pleased to have such committed investors, in Highland and JVP, to provide ongoing financial support."

Kodeos' products, based on the company's "double-reach" optical transmission technology, serve a variety of applications: 2.5 Gb/s to 10 Gb/s upgrades (without additional in-line equipment), large metro and regional rings requiring no dispersion compensating equipment, long single span links and long-haul and ultra long-haul applications.

"As service providers and system developers push for more economical yet flexible networks, Kodeos' value proposition is continuously being validated by customer trials," said Gadi Lenz, Founder and Sr. VP of Strategic Business & Technology Development. "Kodeos' links are immune to dispersion penalties up to 200 kilometers, eliminating fiber compensation cost and offering significant system-level savings."

About Kodeos Communications, Inc.
Kodeos Communications Inc. provides transponders and advanced optical subsystems for OC-192/STM-64/10GigE transmission links within metropolitan, regional and long haul networks. Kodeos' Marathon line of 300-pin MSA compliant, double-reach transponders utilizes advanced signal processing technology to significantly improve channel efficiency and extend span lengths. Kodeos has demonstrated 10 Gbps optical data transmission, using various modulation formats, over distances of 80 to 200 kilometers between optical nodes.