Continuum Photonics Raises $3 Million in Equipment Financing from GE Structured Finance-Technology Finance

Billerica, MA - September 30, 2002 - Continuum Photonics, Inc., an emerging leader in high-performance optical subsystems and components for the telecommunications industry, today announced it has closed on $3 million in equipment financing and has added to its Series B equity financing. Technology Finance, a business unit of GE Structured Finance, provided Continuum with this round of equipment financing. GE Structured Finance joins previous investors, Flagship Ventures and Prism Venture Partners, who co-led the Series B equity round, Harris & Harris, Massachusetts Technology Development Corporation (MTDC), Gainesborough LLC, Arcadian Capital Management and key private investors.

“We’re very pleased to have a world-class firm such as GE Structured Finance join our team as an investor in Continuum,” commented Jeffrey Farmer, Continuum’s CEO. “We looked at a wide array of financial institutions to provide debt financing for our growth and we selected GE Structured Finance’s Technology Finance team because of their strength in providing these services as well as the strategic partnership opportunities they will provide as we continue to build our company.”

“Continuum’s solid financial track record, as well as its broad array of growth opportunities provided a strong business case for our financing,” said Gail Fitzpatrick, a Senior Vice President with GE Structured Finance’s Technology Finance unit.

This equipment financing provides Continuum with the funds required to continue executing on its development plan and to bring evaluation units to customers. Continuum Photonics’ initial product is a family of photonic switch subsystems that meet the critical needs of today’s optical networks: high performance, low loss and low cost in a scalable switching subsystem that is wavelength, bit-rate and protocol independent.

Continuum demonstrated some of the key performance advantages of its DirectLight technology at the March 2002 OFC conference in Anaheim, including extraordinarily low insertion loss (less than 1db including connectors), small footprint and very low power requirements. The company expects to have evaluation units of its photonic switch subsystems available in the first half of 2003.

About Continuum Photonics

Headquartered within Boston's high-tech beltway, Continuum is dedicated to bringing the highest performance photonic subsystem and system products to its customers. Leveraging commonality across its platform of patented technologies, DirectLight optical switches are the first in a series of products from Continuum aimed at changing the traditional economics of the communications and test industries. Founded in 1998, Continuum brings together a world-class team, and an extensive product history in aerospace, automotive, consumer products, and the military, where Continuum's products have been designed to meet the most demanding requirements. Continuum is supported through investments by Flagship Ventures, Prism Venture Partners, Harris and Harris Group, GE Capital, MTDC, Arcadian Venture Partners, and Gainesborough Investments.

For more information, please visit www.continuumphotonics.com

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Contacts

For Continuum Photonics, Inc.

Aaron A. Bent, PhD
Continuum Photonics, Inc.
978-670-4910, x189