Cisco funds developer of chips for optical networks

SAN FRANCISCO: Internet networker Cisco Systems Inc. and others provided $30
million to Quake Technologies Inc., the start-up said on Wednesday, noting it
will boost its fabless semiconductor research and delivery.

Based in San Jose, California and Ottawa, Ontario, year-old Quake develops
integrated circuits for optical networking applications in order to speed
transmissions and increase bandwidth.

Quake’s chief product, now in beta-testing, is 10 times faster than other
physical-layer chips in development, company chief executive Dan Trepanier told
Reuters. According to Trepanier, Quake, now funded by investors with a total of
$48 million, expects to reach profitability with its latest funding.

The start-up’s investors expressed confidence its chips will help optical
networks scale dramatically in performance, leading to healthy sales for Quake.

Joining Cisco in the $30 million investment, the second institutional funding
round for Quake, were Mitsubishi International Corp., Bowman Capital, Mohr,
Davidow Ventures and Emerging Alliance Fund.

(C) Reuters Limited 2001.