DiBcom Raises euro 24.5M Round to Extend Mobile TV Leadership

PARIS, Aug. 29 /PRNewswire/ -- DiBcom, a fabless semiconductor company specializing in chipsets for mobile TV, is pleased to announce the closing of its fourth round of financing for a total amount of euro 24.5 million; the largest venture-backed financing for a French IT company in 2005. Five international investors have joined existing investors in the new capital round: Partech International which leads this round of investment, Intel Capital, 3i, WI Harper and UMC. This funding allows DiBcom to significantly expand its sales and marketing presence in Asia and the United States, as well as extend its mobile TV product roadmap.

Founded in June 2000 and headquartered in France, DiBcom designs and markets semiconductors for the reception of Digital Television in portable and mobile applications. DiBcom's technology has been used by a number of tier 1 customers in the automotive, notebook PC, cell phone, and portable media player (PMP) market segments, who leverage the superior performance, power and integration capabilities of DiBcom's products.

Digital Terrestrial TV has been launched across all European and Asian geographies that have adopted DVB-T as a standard for digitization of TV signals. Concurrently, with most broadcasters rapidly extending existing DVB- T infrastructure to deliver programming onto mobile phones and other hand-held devices, DiBcom has taken clear pole position in offering the highest performance DVB-H solutions to handset vendors worldwide.

"It's an exciting time in mobile communications and DVB-H is an important technology for the industry," stated Dr. Jon Peddie, President Jon Peddie Research, the leading market research firm in multimedia, based in Tiburon California. "The demonstration of DiBcom's chipset in a mobile phone is a major milestone and a clear indication that 2005 is shaping up to be the year of mobile TV."

Growth and Continued Technology Leadership

The main objective of the new funding round is to further accelerate DiBcom's growth strategy. To that end, the company has invested in Sales and Marketing as well as continued Research & Development, aimed at ubiquitous integration of DiBcom's technology into any type of device benefiting from mobile TV reception.

"DiBcom was the first company to target mobile-TV receivers using broadcasting technology, and introduced the first mobile DVB-T receiver back in 2002. With this clear technology lead and strong financial backing, we are confident DiBcom will further extend its position in the industry," says Yannick Levy, CEO of DiBcom.

Financial and Strategic Funding Partners

DiBcom welcomes the arrival of three new value-added venture capital investors as shareholders.

For over more than 20 years, Partech International "Venture Model" has been instrumental in building innovative start-ups into global leaders. Thanks to its international presence, Partech International will assist DiBcom in its global expansion.

"We at Partech believe broadcast TV on mobile and portable devices will shortly be a huge success across many segments of customers through many different types of devices from car TV to handset. We are very excited to be part of this venture and to assist DiBcom in becoming a leader in mobile Digital TV," states Jean-Marc Patouillaud, General Partner -- Partech International.

3i is bringing its huge network of customers and contacts worldwide as well as its unique experience of investment in fabless semiconductor companies (recently witnessed by the successful IPO of CSR on the London Stock Market). Ian Lobley, Senior Partner, is joining DiBcom's Board of Directors.

WI Harper will also make DiBcom benefit from its network of customers and contacts, especially in Asia.

After Freescale Semiconductor, DiBcom also invited two new strategic participants to join its investors group. UMC, a world-leading semiconductor foundry headquartered in Hsinchu, Taiwan, has been a key supplier to DiBcom for several years and will continue to provide superior foundry services and allocation in order to support DiBcom's growth. Intel Capital has identified in DiBcom a leading provider of digital TV solutions for both the notebook and the mobile phone and will assist DiBcom in offering its solutions to Intel's major customers in these markets.

"We are pleased to invest in DiBcom and support the efforts of rolling out DVB-H for mobile TV on our Xscale handheld and Centrino notebook platforms," said Sam Arditi, VP and general manager of Intel's Communications Handheld Group. "DiBcom has been the first to market in DVB-H silicon for handheld devices, and a leading DVB-T supplier to the automobile and notebook PC market segments for several years. We see significant opportunities for mobile TV in these platforms going forward."

Full Support by Existing Shareholders

The new investors join investors SGAM Alternative Investments, Convergent Capital, Credit Agricole Private Equity, Vertex Venture Capital Israel, Cipio Partners, and Freescale Semiconductor all of whom reconfirmed their support for DiBcom and its market opportunity with follow-on investments.

"SGAM Alternative Investments is proud to have been the first investor to work with a team of such high caliber. Since 2000, we have been impressed by the team's track record of delivering high quality solutions on time," said Xavier Lorphelin, Partner, SGAM AI. "We believe in the disruptive potential of DVB to become a leading broadcast technology, especially as it evolves from fixed to portable and mobile applications."

DiBcom was assisted by Clipperton Finance, an advisory firm specializing in High-Tech and Media.

About DiBcom

DiBcom is at the heart of mobile TV. As a fabless semiconductor company that designs high-performance chipsets, DiBcom enables low-power mobile and portable TV reception everywhere and at speeds exceeding 150 mph. The company's solutions are used in automotive, PC/peripheral and handheld device applications. DiBcom has extensive experience solving real-world mobile digital terrestrial television (DTT) reception problems and has overcome the main technological barriers to high-quality service. The company has developed patented algorithms and architecture for fast and accurate channel estimation and high Doppler compensation. Its chipsets are compliant with the current worldwide Digital Video Broadcast standards DVB-T and DVB-H. For more information, please visit http://www.dibcom.com/

About Partech International

Founded in 1982, Partech International is a leading global venture capital firm with $850M under active management and offices in the U.S., Europe and Israel. Partech invests exclusively in Information Technology and the firm's internationally integrated team of investing partners work together closely to find the most innovative companies demonstrating high return potential and disruptive technologies in the Software & Internet, Communications & Components and Healthcare IT sectors. Partech has a unique 20+ year track record assisting its portfolio companies to become global market leaders. Some of Partech's successful investments include: Ascend Communications, Alvarion, Business Objects, Cadence, CSG Systems, Digital Island, Informatica, Pentasafe and Vignette.

For more information, please visit http://www.partechvc.com/ or call Isabelle Jahn: +33 (0)1 47 49 69 95 - +33 (0)6 63 54 23 06

About Intel Capital

Intel Capital, Intel's venture investment program, focuses on making minority equity investments to grow the Internet economy in support of Intel's strategic interests. Intel Capital invests in hardware, software and services companies in several market segments, including computing, networking, and wireless communications. Intel Capital has invested more than US$4 billion in approximately 1,000 companies in more than 30 countries since 1991. Since its inception, about 160 portfolio companies have been acquired by other companies and another 150 have gone public on various exchanges around the world. Intel Capital employs investment managers in about 25 countries worldwide. Last year alone, Intel Capital invested more than US$130 million in about 110 deals with approximately 40 percent of its investments made outside the United States. For more information, visit http://www.intel.com/capital.

About 3i

3i is a leading international venture capital and private equity firm that was founded in 1945 to invest in buyouts, growth capital and venture capital in order to create market-leading companies. Since its inception, 3i has invested over $31 billion worldwide and has a total staff of 700 employees operating out of 30 offices in 14 countries. 3i's venture capital team of 50 investors is actively specialized in investing in communications, healthcare, software and ESAT (electronics, semiconductors and advanced technologies) across Europe, Asia and the US. 3i's Venture Capital portfolio includes 400 companies with a total value of $1.1 billion. With a proven track record and knowledge of venture capital investing, 3i provides hands on support and guidance in building and scaling successful businesses.

Some of 3i's award-winning early stage portfolio include Vonage, US (VOIP); Udex, US (RFID); The Cloud, UK (wireless); Microsulis, Scotland (medtech); Mobile 365, France (comms); Smart Fuel Cells, Germany (energy); Fractus, Spain (antennas); Sulake, Finland (gaming), with successful IPO realizations through Cambridge Silicon Radio (CSR), e2v, Bookham Technology, Novuspharma (Italy) and many others.

For more information, see http://www.3i.com/. Contact: Sophie Guezenec, +33 (0)1 47 15 11 00, sophie_guezenec@3i.com. About WI Harper

WI Harper is one of the first U.S.-based venture capital firms to create a value-adding bridge between the West and Greater China. For nearly a decade, WI Harper has been building companies internationally by facilitating the flow of capital, technology and management across both sides of the Pacific. Through the unique cross-border platform and proactive management style, WI Harper strives to add value to portfolio companies with the ultimate objective of maximizing returns for our shareholders.

WI Harper currently manages five funds totaling US$225 million from its headquarters in San Francisco and branch offices in Beijing, Taipei, and Singapore. WI Harper's portfolio includes over 90 companies in high-growth areas of information technology and life sciences. http://www.wiharper.com/

About UMC

UMC is a leading global semiconductor foundry that manufactures advanced process ICs for applications spanning every major sector of the semiconductor industry. UMC delivers cutting-edge foundry technologies that enable sophisticated system-on-chip (SoC) designs, including 90nm copper, 0.13um copper, and mixed signal/RFCMOS. UMC is also a leader in 300mm manufacturing; Fab 12A in Taiwan and Singapore-based Fab 12i are both in volume production for a variety of customer products. UMC employs approximately 10,500 people worldwide and has offices in Taiwan, Japan, Singapore, Europe, and the United States. UMC can be found on the web at http://www.umc.com/.

UMC Capital was created in February of 2001 and is the direct investment arm of world leading semiconductor foundry UMC. By leveraging the resources of UMC and its affiliates, UMC Capital is well positioned to provide significant strategic values to startup companies. The mission objectives of UMC Capital are to identify innovative technologies, form mutually productive relationships with entrepreneurs, explore and expand emerging markets and applications.

About SGAM Alternative Investments

SG Asset Management is the asset management subsidiary of Societe Generale, the French banking Group. With EUR 292 billion managed through its four poles of expertise in the United States, Continental Europe, the United Kingdom and Asia, SG Asset Management is the third-largest player in the euro zone and ranks among the top 20 worldwide. Created in January 1997, SG Asset Management has developed a strong expertise in private equity and venture capital. With more than euro 440 million under management, it is one of the leading venture capital players in Europe. http://www.sgam-ai.com/

Operation Contacts: Xavier Lorphelin, Nicolas Louvet About Credit Agricole Private Equity

Credit Agricole Private Equity is the asset management company of Credit Agricole S.A., dedicated to private equity investments in unlisted companies. 35 professionals specialising in four activity segments (Expansion Capital & LBO, Venture Capital, Secondary Market, Mezzanine) manage euro 1,050 billion under French private equity mutual funds (FCPR and FCPI) and private equity companies (SCR). Credit Agricole Private Equity advises business managers on their growth plans.

Transaction Contacts: Michel de Lempdes, Investment Manager About Vertex Venture Capital - Israel

Vertex Venture Capital is a leading player in the international venture capital arena. This unique Israeli VC strives to be the strategic investor of choice for high tech start-ups and endeavors to achieve the business and financial objectives of its investors and portfolio companies.

Vertex invests in Israeli technology-intensive companies with outstanding management and real market growth potential. Vertex Venture Capital invests in Israeli and Israel-related high technology companies in the early stages of development in the areas of enterprise software, information networking, components and other leading emerging technologies.

Vertex Venture Capital has established a global network of business relationships and strategic partners that provides unparalleled possibilities for companies in facilitating potential growth, business opportunities and leveraging synergies throughout Israel, Europe, USA, Japan and Asia. Major strategic and financial investors in Vertex's venture capital funds include Temasek Holdings, Israel Discount Capital Markets and Investments, Creative Technology, Hitachi, Seiko Instruments, Nomura, JAFCO, NTT, Nikko Antfactory, Murata, SCP Private Equity and Mellon Ventures. Vertex Venture Capital has an impressive track record of successful financial exits through M&As and IPOs.

About Convergent Technologies

Convergent Technologies is a European Venture Capital Fund, created in 2001 and managed by Convergent Capital. The Management Company is led by a team of 3 partners with 50 years of cumulated experience in managing technology companies. It's focus is on early stage (seed and first round) investments in the high growth segments of the Information and Communication Technology (ICT) sector, including core components and equipment as well as infrastructure and enabling software and related technologies. The regional focus is in France, Europe, and opportunistically in Israel.

For more information, visit http://www.convergent-capital.com/ Contact: Philippe de Bellefonds tel +33(0)1.30.08.81.00 About Cipio Partners

Cipio Partners is a leading investment management firm in the secondary direct market. With offices in London, Munich and Silicon Valley, Cipio Partners manages a global portfolio of early and later-stage venture capital and mid-market investments. Representative portfolio companies include Danger, MontaVista Software, Saifun Semiconductors, Broadbus Technologies and Jungo. For more information, visit http://www.cipiopartners.com/.

About Freescale Semiconductor

Freescale Semiconductor, Inc. is a global leader in the design and manufacture of embedded semiconductors for the automotive, consumer, industrial, networking and wireless markets. Freescale Semiconductor became a publicly traded company in July 2004 after more than 50 years as part of Motorola, Inc. The company is based in Austin, Texas, and has design, research and development, manufacturing or sales operations in more than 30 countries. Freescale Semiconductor, a member of the S&P 500(R), is one of the world's largest semiconductor companies with 2004 sales of $5.7 billion. http://www.freescale.com/.

About Clipperton Finance

Clipperton Finance (http://www.clipperton.net/) is a Paris-based investment banking boutique dedicated to the high tech and media industries. Clipperton Finance is focused on start-up and advanced companies in the Software, Telecom, Components and Internet spaces, advising them in their financial transactions -- fund raising/capital increases and Mergers & Acquisitions. Over the past years the company and its team have managed to structure numerous high level international transactions in the French and European High Tech sector.