 |
Magnolia Broadband Closes $11 Million Round of Financing
|
|
Proceeds to Fund Commercial Launch of DiversityPlus(TM) Handset Antenna Diversity Chipset
|
CLINTON, NJ -- (MARKET WIRE) -- 10/12/2004 -- Silverstar Holdings LTD (NASDAQ: SSTR) portfolio member, Magnolia Broadband, Inc., a fabless semiconductor company and a leader in antenna diversity solutions for the wireless industry, today announced the close of an $11 million round of financing to support the company's marketing, sales and distribution efforts of its DiversityPlus™-based radio frequency integrated circuit (RFIC) chipset.
Magnolia is the first company offering to improve both transmission and reception in mobile terminals using dual antenna inputs and outputs to create more robust signals through its diversity algorithm processing. Cell phones powered by DiversityPlus™ will have longer battery life and enable carriers to improve coverage and data throughput, as well as serve twice as many subscribers with the same infrastructure.
The round was co-led by SCP Private Equity Partners, ECentury Capital and DFJ Gotham Ventures. This financing brings the total equity investment in Magnolia to approximately $28.5 million since its founding in late 2000.
"As Magnolia matures to commercial mode of operations, the investors are excited to provide the necessary funding that will enable the organization to fully commercialize its unique antenna diversity technology," said Yaron Eitan, Partner at SCP Private Equity Partners. "We are highly encouraged by the reception Magnolia has been garnering in the wireless industry and look forward to its market penetration and acceptance as a standard component in the current and next generation of cell phones."
The implementation of DiversityPlus™ in the market will provide substantial savings to the wireless carriers, relative to expensive network upgrades. Designed to deliver the next generation of performance to the wireless carriers, DiversityPlus™ technology in the mobile terminal does not require any change to the network or to wireless standards.
"The Magnolia team appreciates the continued support and faith of our investors," said Haim Harel, president and CEO of Magnolia. "We are now pleased to say that we are moving from the development and testing phase towards the production, deployment and marketing of DiversityPlus™ technology. We look forward to continuing our work with carriers and OEMs to achieve these goals."
Highlighted Links
http://www.magnoliabroadband.com
About Magnolia Broadband
Magnolia is an innovative developer of semiconductors for the wireless industry and the first company to provide diversity antenna technology using unique RF chipset products that incorporate both transmit and receive diversity. By using a unique RF (Radio Frequency) chipset product and algorithm, it incorporates a novel way of combining RF signals from two antennae for both transmit and receive signals in the mobile terminal, enabling carriers to serve twice as many subscribers within the same wireless infrastructure while boosting phone coverage, data rates and battery performance. Carriers and consumers also benefit from more reliable connections, improved quality of service while having small impact on cost.
Leading CDMA carriers and mobile terminal manufacturers have tested Magnolia's technology. Since its inception in 2001, Magnolia has raised $28.5 million in capital from notable investors like Draper Fisher Jurvetson Gotham, ECentury Capital Partners, SCP Private Equity Partners, Selway Partners and Silverstar Holdings. Magnolia has filed numerous patents related to its core technology and partnered with semiconductor industry notables such as Jazz Semiconductor, and Amkor Technology. For more information, go to www.magnoliabroadband.com.
About Draper Fisher Jurvetson Gotham Ventures
Draper Fisher Jurvetson Gotham Ventures (DFJ Gotham) is a $100 million early-stage, venture capital fund focusing on IT infrastructure, broadband and wireless communications, network security and storage technology, enterprise software and other emerging technology sectors. DFJ Gotham concentrates on opportunities in the greater New York area and looks for breakthrough solutions to fundamental needs in fast growing markets. As a Draper Fisher Jurvetson affiliate fund, DFJ Gotham shares the knowledge and resources of over 12 DFJ-network funds, which have over $3 billion under management and over 350 portfolio companies. For more information about DFJ Gotham please visit www.dfjgotham.com.
About ECentury Capital
ECentury Capital is a $90 million balanced-staged venture capital fund that makes investments throughout the eastern United States in distinctive technology companies that solve real business problems. We give our portfolio companies the power to accelerate their businesses into global markets by leveraging our active, institutional partners Hitachi, Mitsubishi, Allied Capital and Rothschild. More information on ECentury Capital can be found at www.ecenturycapital.com.
About SCP Private Equity Partners
SCP Private Equity Partners ("SCP") is a diversified private equity investment firm with $800 million under management focused on making mid and late stage venture investments in rapidly growing infrastructure technology companies. A number of these companies are positioned to capitalize on the convergence of the IT and security markets. SCP supports its investment portfolio with a rich base of strategic, operating and financial expertise and an extensive networking capacity to access capital, recruit management and facilitate favorable strategic alliances. Areas of particular focus in which SCP has made investments include peer-to-peer technologies, IT services, wireless technologies, streaming media, content management, e-learning, and application integration. Additional information on SCP and a summary of representative investments can be found at www.scppartners.com.
About Selway Partners
Selway Partners LLC is a holding and operating company that builds and funds a select number of promising projects within the information technology and telecommunication markets. Selway provides strategic and operational management, technology expertise, and capital at the earliest stages, thus adding maximum value when it's needed most. Additional information on Selway Partners can be found at www.selway.com.
About Silverstar Holdings
Silverstar Holdings Ltd. is a publicly traded company, focusing on acquiring, controlling positions in high growth sports technology and media related businesses that stand to benefit from the economies of scale generated by Internet and other technology related platforms. It currently owns Fantasy Sports, Inc., a dominant provider of fee based NASCAR related and other fantasy sports games, as well as a stake in Magnolia Broadband, a fab-less semiconductor company and innovator of radio frequency (RF) solutions for the cellular industry.
The statements which are not historical facts contained in this press release are forward looking statements that involve certain risks and uncertainties, including but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, development of new products, regulatory approval processes, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties detailed in the company's filings with the Securities and Exchange Commission.
|
|
 |
 |
