Kagoor Networks Starts 2003 with $7.5 Million in Series C Financing

Additional Funding Marks Continuing Acceptance of VoIP Border Control Category and the Company's Leadership Position

San Mateo, Calif., February 11, 2003 – Kagoor Networks, a pioneer of Voice-over-IP (VoIP) Border Control solutions, today announced that it has raised $7.5 million in its third round of financing. VantagePoint Venture Partners and ComVentures jointly led the round and continued as return investors along with several smaller investors. This latest round of capital will allow the company to continue focusing on sales and deployment of its VoiceFlow™ series product line. The products are being tested and implemented by service providers and enterprises deploying IP Centrex, managed IP PBX and VoIP peering and protection applications.

Kagoor's VoiceFlow platform and products solve crucial problems faced by both service providers and enterprises that are evolving to VoIP networks. These functions include VoIP security and firewall features, network address translation (NAT), firewall traversal, call admission control, remote monitoring and management of VoIP endpoints, Quality of Service (QoS) features like packet marking, and bandwidth management and compression. All of these key functions are provided on a single, integrated VoiceFlow device. Kagoor is currently rolling out two new additions to the VoiceFlow series, the VoiceFlow 200 and the VoiceFlow 3000, so that the product line now scales from a cost-effective CPE model as low as 10 concurrent calls to a carrier grade system delivering up to 20,000 concurrent calls. The company has completed trials with a wide variety of major U.S. and international carriers/service providers and has established strong partnerships with industry leading vendors and system integrators.

"As Voice-over-IP networks begin to rollout and scale, the problems at the IP network borders are coming to the forefront. For service providers and carriers to deliver secure, seamless VoIP networking to enterprise and consumer customers, Kagoor technology and products are an essential ingredient," according to Opher Kahane, CEO and Co-founder of Kagoor Networks. "We are extremely pleased that both VantagePoint and ComVentures chose to reinvest in Kagoor in this tough market environment and consequently continue their support for our leadership position in VoIP border control."

"Kagoor is a leader in the VoIP evolution with their VoIP border control technology and their market approach. We have been impressed with the progress that the team has made despite the continued harsh telecommunications environment," said David Helfrich, Partner at ComVentures. "Their development speed and focus, and progress with leading VoIP service providers and infrastructure players convinced us to invest further with the company."

"The Kagoor team has shown significant, measurable progress during the last year with new products, new applications, carrier penetration and partnerships. The company has demonstrated real momentum and solid market traction and we believe that they are on track to becoming one of the bright spots in the VoIP arena," said Danny Yu, Partner at VantagePoint Venture Partners.

About Kagoor Networks

Kagoor is a leading supplier and innovator of session border control technology that ensures customers fast, expert delivery of IP communications services (voice, video, multimedia). Our award-winning VoiceFlow series of session border controllers overcomes technical roadblocks typically encountered at VoIP network borders. With leading telecom partnerships and a rapidly growing base of over 100 worldwide customers, including 14 Tier 1 carriers, Kagoor’s VoiceFlow is the most popular, scalable family of session border controllers available. The company is headquartered in San Mateo, CA, with offices throughout the world. More information is available at www.kagoor.com.

VoiceFlow and Kagoor Networks are registered trademarks of Kagoor Networks, Inc. All other trademarks belong to their respective companies.