Syntune AB receives Euro 4.7 million financing

Tunable laser manufacturer closes successful private equity round

Stockholm, Sweden - December 6, 2004: Syntune AB, the developer of innovative single-chip tunable lasers today announced that it has raised SEK 42 million ($6.2 million, EUR 4.7 million) in private equity financing round led by InnovationsKapital of Sweden and co-led by Teknoinvest of Norway. Other investors include Vision Capital of the USA, and private investors. “This investment will enable us to bring to our customers the Syntune advantages of low power consumption, small size, single chip simplicity and reliability, and rapid tuning that they desire,” said Pierre-Jean Rigole, CEO. Syntune produces tunable lasers to a unique design, known as "modulated grating Y-branch" or MG-Y. The key advantage of this laser design is that it is highly manufacturable, allowing the laser chip manufacture to be outsourced. This removes the need for dedicated fab facilities, and allows economies of scale to be passed to the customer. It additionally yields wide tuning range, high and even output power, high side-mode suppression ratio, low power consumption, and ultra-fast tuning. “The Syntune product has decisive advantages in the high volume, small form factor market where tunability is a key differentiator. We are very impressed by the Syntune team and pleased to be part of their exciting growth,” said Peder Holm, Investment Manager at InnovationsKaptial. “Raising money now is not like raising money four years ago. This investment is a tribute to the compelling nature of the Syntune product, and the depth of the Syntune team,” said Bjorn Broberg, Chairman. For further information please contact: Björn Broberg, Chairman Syntune AB, phone +46 708 75 31 30, email bjorn.broberg@syntune.com Peder Holm, Investment Manager InnovationsKapital, phone +46 8 54 50 14 90, e-mail peder.holm@innkap.se About Syntune: Syntune supplies state-of-the-art widely tunable lasers for applications ranging from fiber-optic communications to sensor systems. In communications, Syntune's lasers enable universal DWDM transceivers with low power consumption in a small form factor. These drastically reduce overhead costs for sparing and maintaining inventories. Tunability also enables flexible networks, which allows operators to offer innovative services and reduces their operational expenditures. Further information about Syntune can be found at www.syntune.com About InnovationsKapital: InnovationsKapital was founded in 1994 and is a leading early stage venture capital firm for innovative growth companies in the Nordic region. The business, carried out from offices in Gothenburg and Stockholm, is focused on Nordic investments within ICT and Healthcare & Life Sciences - dynamic sectors that are rapidly expanding and where Nordic research plays an important role. The capital (EUR 200 million) is managed in three funds and is provided by highly reputable Swedish and international institutional investors. Further information about InnovationsKapital can be found at www.innkap.se About TeknoInvest: Teknoinvest Management AS is a leading Scandinavian venture capital company based in Norway that invests in emerging technologies within the IT/Telecom and Life Sciences sectors. The main geographical focus is Scandinavia and the US. Teknoinvest is the Nordic venture capital firm with the longest track record following its establishment in 1984 and it currently manages funds of NOK 1.1 billion. Further information about Teknoinvest can be found at www.teknoinvest.no About Vision Capital: Vision Capital is a Trans-Atlantic fund providing growth capital for leading technology companies. Vision invests in promising European and US technology companies and then takes an active, hands-on approach in expanding these businesses across the Atlantic. Further information about Vision Capital can be found at www.visioncap.com