RESEARCH TRIANGLE PARK, N.C., June 1, 2006 — ColOverture Networks, a leading developer of converged packet access platforms, today announced the completion of a $7.5 million third round of financing led by new investor Telecommunications Development Fund (TDF) in Washington, D.C.. Current investors, including Morgenthaler Ventures, Intersouth Partners, Armada Ventures and Gray Ventures, and another new investor, Legend Ventures, also participated in the round. The new funds will be used as growth capital to expand product development and customer support functions.

"Based on many conversations with their customers and partners, it is apparent that Overture Networks' market sense, positioning and execution are excellent," said Jim Pastoriza, managing partner of TDF. " In just a few short years, Overture Networks has built a solid customer base with top-tier carriers and I look forward to helping them expand into new opportunities."

Overture Networks provides high-speed networking platforms that allow carriers to economically reshape their networks and revenue streams by deploying uniform managed Ethernet and TDM services to every customer location. The ISG family of products helps service providers significantly enhance their service capabilities and customer responsiveness at the edge of their networks and allows providers to use both fiber and copper circuits; thereby increasing their footprint and revenue opportunities in an extremely cost effective manner.

"This investment in Overture Networks is a tremendous endorsement of our business performance and our position in this growing industry, especially considering today's competitive business environment," said Jeff Reedy, chief executive officer of Overture Networks. "The capital infusion will allow us to accelerate the deployment of our industry-leading multiservice access platforms to new markets and to new service providers looking for a cost-effective method to add managed Ethernet services over any underlying infrastructure."

With over 60 customers, double-digit quarterly revenue growth, and a recent expansion into Europe, Overture Networks continues to demonstrate market penetration and build on its leadership position in packet access networks. The company provides solutions to traditional telecom carriers, cable operators and large enterprises. Recently announced customers include THUS, plc; Cypress Communications and Memphis Networx. The company's revenue is generated through direct sales of its ISG suite of converged packet access platforms and through partners such as Tellabs and ADC.

About Overture Networks Inc.

Headquartered in North Carolina's high-tech center, Research Triangle Park, Overture Networks has assembled a veteran team with extensive experience delivering edge solutions to carriers and enterprises—experience rooted in IP, Ethernet, and TDM technologies and dedicated to the specific problems metro service providers face in a hybrid packet/circuit world. The company's ISG products are converged packet access platforms that can run multiple managed services over any network infrastructure to any customer location at the customer edge. www.overturenetworks.com