Siemens Invests in Kiyon's Indoor Wireless Broadband Mesh Networking Technology

1 August 2005

Broadband wireless mesh networking systems provider Kiyon, Inc. announced today that it has raised $10 million in an oversubscribed Series B round financing. Siemens Venture Capital led the round with Jacobs Capital Group of Pasadena, California co-investing. Kiyon is an indoor wireless broadband mesh networking company focused on the digital home, RFID, and building automation industry markets for infrastructure and direct client applications.

"With this financing, and our current and projected revenue, Kiyon will be profitable by the mid part of 2006," predicted Dr. Michael Nova, CEO and Founder. "The investment from respected industry leader Siemens, through its venture organization Siemens Venture Capital, and Jacobs Capital Group, an entrepreneurial oriented venture fund, along with accelerating customer traction is recognition of an irreversible trend toward ubiquitous wireless connectivity and Kiyon's ability to deliver the software solution that will seamlessly link the expanding universe of mobile and edge devices. The biggest issue for us now, is keeping up with customer demand," said Nova.

"Kiyon is an exciting wireless mesh networking company with a very strong product portfolio and superior technology approach. They are aggressively working to service their customer demand and focus on expanding the market penetration. Kiyon will have strategic relevance to many Siemens business units including Automation & Drives, Communications, Siemens Business Services, RFID and Siemens Building Technologies. As an investment from Siemens Venture Capital means more than just money, this investment is a great fit. We can provide intensive support to Kiyon and foster its development in bringing together Kiyon with our business units in addition to our financial contributions," said Todd Jaquez-Fissori, Investment Partner at Siemens Venture Capital in the San Jose office.

"We're excited about this investment in Kiyon. We think Kiyon is well positioned to emerge as a significant player in the mesh networking market. This funding will enable Kiyon to rollout its product in several markets. We look forward to working with management and the other investors in building this company," said Alex Suh, Managing Director with Jacobs Capital Group.

Kiyon's IP and technology is based on innovations in mesh networking aimed at the center of converging trends involving seamless wireless mobility, security, ubiquitous connectivity and an evolution of all communications media toward a common packet-based Internet Protocol. The Kiyon Autonomic Network (KAN) software allows for QoS and complete broadband TCP/IP throughput over multiple hops in a wireless mesh network. Kiyon's software kernel is downloadable to any client or consumer electronic device for P2P and M2M connectivity and solves key throughput problems for wireless broadband transmission over multiple hops while continually self-managing all network and application functions automatically. Kiyon's technology serves as an "Operating System for Convergence" for high bandwidth applications connected by 802.11x WiFi, UWB, WiMax, BACnet and other wireless platforms in a home, business, or community setting. The technology is the only known indoor mesh software solution that can run any high bandwidth application with QoS and multi-channel security on single radio platforms, including VoIP, multimedia video, RFID and many others.

According to IT industry analyst IDC, by the year 2008, there will be 16.4 billion networked devices worldwide, the majority of them wireless. Networked edge devices will handle more than 50% of all network traffic. "Kiyon aims to be the network operating system for all this connectivity," says Nova.

About Kiyon:
Kiyon was founded in 2003 and is headquartered in La Jolla, CA. The World Economic Forum listed it among its Technology Pioneers for 2005, which honors companies developing and applying transformational technologies that will significantly impact business and society (http://www.prweb.com/releases/2004/12/prweb187511.htm). Kiyon's autonomic mesh networking technology is distinguished from other mesh networking technologies by virtue of its unique ability to maintain broadband throughput capacity over multiple hops, and versatile MAC layer-2 routing that allows it to interface with any higher-level protocol. It is ideally suited for wireless TCP/IP propagation and running various high level broadband applications, whether an IP backbone or direct P2P communication among clients. For more information, please visit www.kiyon.com.

About Siemens Venture Capital:
Siemens Venture Capital (SVC) is the $600 million corporate venture organization for Siemens AG, (NYSE:SI) one of the largest global electronics and engineering companies with reported worldwide sales of $91.5 billion in fiscal 2004. The goal of SVC is to identify and fund investments in emerging and innovative technologies that will enhance the core business scope of Siemens, particularly in Information and Communications, Automation and Control, Medical Solutions, Automotive Technology and Transportation Systems, Power, and Lighting. With offices in Munich, San Jose, Boston and through Siemens Israel, Ltd. in Herzliya near Tel Aviv, SVC has invested in more than 100 start-up companies and 30 venture capital funds, and plays a key role in the global network of innovation.

SVC is part of a greater network at Siemens whose mission is to drive technological innovation by supporting start-up companies. In addition to Siemens Venture Capital, Siemens Acceleration in Communications, Siemens Technology Accelerator, and Siemens Technology-To-Business Center contribute to the innovation strategy of Siemens. Their individual mandates are defined according to financing stages and industry focus. More: www.siemensventurecapital.com

About Jacobs Capital Group:
Jacobs Capital Group (JCG) is a venture fund making direct investments in technology companies in California and fund of funds investments internationally. JCG has built a strong reputation for its entrepreneurial approach to investing and working with technology companies. JCG actively leverages its resources and network from the fund of funds investments for the benefit of the companies in its portfolio, especially for strategic partnerships, and additional fundraising.

This release contains forward-looking statements based on beliefs of Kiyon company management. The words "anticipate," "believe," "estimate," "forecast," "expect," "intend," "plan," "should," "predict," and "project" are used to identify forward-looking statements. Such statements reflect the company's current views with respect to future events and are subject to risks and uncertainties. Many factors could cause the actual results to be materially different, including, among others, changes in general economic and business conditions, changes in currency exchange rates and interest rates, introduction of competing products, lack of acceptance of new products or services and changes in business strategy. Actual results may vary materially from those projected here. Kiyon does not intend or assume any obligation to update these forward-looking statements.

Contact:
Frank Wong
Director, Marketing
Phone: (323) 459-1548
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