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November 1, 2001

SS8 Networks Acquires ADC's Enhanced
Services Division

Raises $62 Million Financing Package Led by Warburg Pincus and Existing Investors

SS8 Networks IP Signaling and Services solutions to combine with ADC's Enhanced Services Division messaging and enhanced services platforms to provide a complete, end-to-end services suite for carriers worldwide.

San Jose, CA - SS8 Networks, a leading provider of IP signaling and services solutions for next-generation network operators worldwide, today announced it has completed the acquisition of the Enhanced Services Division (ESD) of ADC Telecommunications, Inc. in a cash transaction valued at $45 million U.S. The transaction was part of a $62 million equity financing package led by Warburg Pincus, a global private equity firm that invested $47 million. A number of the existing investors, including Woodside Fund, Onset Ventures and CDP Sofinov, also participated in the financing.

The SS8 Networks acquisition of ESD creates a global leader in telephony and data services having more than 450 employees worldwide. The transaction combines the SS8 Networks IP-Intelligent Network and signaling product lines with a full range of enhanced services platforms, including unified messaging, SS7 signaling, and lawful intercept for PSTN, IP, and hybrid network operators. SS8 Networks’ expertise and focus on next generation network solutions will also allow existing ESD customers to migrate smoothly and rapidly to high-value IP service offerings.

“The integration of the ADC Enhanced Services Division with SS8 Networks creates a global leader capable of providing a full range of services for both VoIP and traditional PSTN network operators,” said Grant Wakelin, chief executive officer of SS8 Networks. “The strength of the SS8 Networks vision and management team is reflected in the strong endorsement from Warburg Pincus and our existing investors, who together contributed more than $62 million to support both the transaction and our growth going forward.”

Speaking for the investors, Larry Bettino, a Warburg Pincus managing director, said, “Our purpose is to create a major provider of enabling technology to the global telecommunications industry. We are confident that SS8 Networks, under Grant Wakelin’s leadership, can realize the business and technology synergies offered by the two companies.”

"The combination of SS8 Networks and ADC ESD is one in a string of announcements illustrating the critical nature that intelligent network services and application platforms will play in converging networks," said David Fraley, principal analyst for Gartner Group Dataquest. "The complementary capabilities of the ADC intelligent peripherals and edge platforms, and the core network intelligence of the SS8 Networks product family will assist service providers in transforming their communications services from basic access to a wide range of high-value applications."

SS8 Networks and ESD will be integrated into a single company with combined headquarters in San Jose, California. Major R&D centers will be located in Ottawa, Ontario, Canada and Shelton, Connecticut. The company will also operate sales and services offices around the globe.


About SS8 Networks

SS8 Networks (www.ss8.com) is a leading developer of Internet signaling and services solutions that enable service providers to deliver high performance data, telephony, and video services over the Internet. The company’s carrier-class products enable next generation network operators to create and deploy innovative new services that transcend the PSTN. SS8 Networks has headquarters in San Jose, California, and R&D locations in Ottawa, Canada and Shelton, Connecticut.

About Warburg Pincus LLC

Warburg Pincus is one of the largest private equity investment firms in the world. Working in partnership with management teams, Warburg Pincus has taken an active role in building businesses, including companies such as Avaya (NYSE: AV); Neustar, LCI Communications Inc. (acquired by Qwest Inc.) and Level One Communications (acquired by Intel.) Since 1971, Warburg Pincus has invested approximately $12 billion in 450 companies in 29 countries. The firm currently has $10 billion under management, with an additional $5 billion available for investment in a range of industries including: communications, information technology, financial services, healthcare and life sciences, media, and natural resources. Throughout its 30-year history in private equity, Warburg Pincus has invested at all stages of a company’s life cycle, from founding start-ups and providing growth capital to leading restructurings, recapitalizations and buy-outs. Further information is available at www.warburgpincus.com.







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