Mangrove Secures $21M Series B Funding With Top Tier Venture Firms

Funds to be used for Advanced Development of MetroMPLS(tm) Platforms and Support of Customer Initiatives

WALLINGFORD, CT-February 14, 2005 - Mangrove Systems, developer of the industry's first metro and access solution to enable end-to-end MPLS, today announced it has successfully closed its $21 million Series B financing bringing the total capital raised to $42 million. The additional investment reflects the strong support of new investors STAR Ventures and Gold Hill Venture Lending as well as all existing major investors, Bessemer Venture Capital, Highland Capital Partners and Columbia Capital. Mangrove will use the funds to expand the Company's sales, marketing and product development activities in order to capitalize on the market opportunity for converged MPLS solutions.

"This new investment will fuel our growth and transition Mangrove to a full scale manufacturing company capable of meeting our customer's demands and expectations," said John Hannon, Mangrove CFO.

Mangrove's MetroMPLS platforms were introduced and successfully demonstrated in June, 2004, and are currently undergoing trials with major service providers around the world. MetroMPLS technology allows carriers to extract additional profit from their existing infrastructure while seamlessly migrating to future networks.

"In today's demanding market, companies must bring together an excellent team, a compelling solution, and top of the line execution," stated Pinny Chaviv, Partner and Investment Manager at STAR Ventures. "Mangrove is one of the few infrastructure companies that we believe has the expertise and assets to succeed in this market."

Bob Goodman, General Partner at Bessemer Venture Partners added, "Mangrove has brought together an outstanding team that has delivered on a product vision, has demonstrated customer execution to capture an enormous market opportunity and has laid a solid foundation for continued and on-going success. They are well positioned to solve the immediate and future business challenges carriers face."

"Mangrove is committed to delivering cost-effective, advanced technology solutions to our customers. The strong support from these leading investors in a challenging funding environment validates the progress we have made to date and the exciting market opportunity we are beginning to exploit," said Jonathan Reeves, Mangrove president and CEO. "We will continue to play a key role in transforming the metro and access infrastructure into a fully converged, MPLS network."

About Mangrove Systems
Founded in 2002 by one of the industry's most experienced technology leadership teams, Mangrove Systems is developing a family of innovative MetroMPLS(tm) Access and Switching platforms that bridge the divide between today's TDM-based access and metro network and the rapidly evolving MPLS core. Mangrove's MetroMPLS is the first solution to enable end-to-end MPLS networking. Mangrove Systems is located in Wallingford, CT. For more information visit: www.mangrovesystems.com