Surf Communication Solutions Completes $8 Million Funding Round

SURF Communication Solutions, a provider of software and hardware-based media processing solutions, recently announced the completion of a funding round for the Company totaling $8 Million. The funding round was led by Poalim Ventures, the venture capital arm of Poalim Capital Markets. The majority of existing large shareholders in the Company, such as Giza, Pitango, BOS, and Texas Instruments Incorporated (“TI”), took part in the current round, an expression of their confidence and full support for the Company.

Surf is the first company to support convergence of all media types – voice, video and data – over various networks (IP, mobile, wireline, and wireless), running simultaneously on a single DSP, or over boards carrying multiple DSPs to enable high capacity propagation.

Eran Gersht, CEO of Poalim Ventures, said that the decision to invest in Surf and to lead the funding round was taken after a thorough due diligence of the Company’s capabilities and potential for growth. “Surf is a veteran company that over the years has built up significant technological assets. In the re-structuring effort that took place approximately two and a half years ago, several key personnel were recruited, including new members of management. The Company decided to focus on the development of software and hardware media processing solutions for voice, video and data, a field in which the Company is considered a leader,” added Gersht.

Numbering amongst Surf’s customers are several leading international Tier-1 companies. In addition, Surf has signed a strategic partnership agreement with TI, already mentioned above as one of the companies that took part in the current funding round, as well as in a previous round in 1999.

Eyal Zagagi, President and CEO of Surf, said that the strategy established by the company a year and a half ago has proven itself to be correct and that an excellent situation has been created whereby a clear requirement exists in the market for products for which Surf possesses a unique advantage. “Surf has succeeded in significantly increasing revenues over the past few quarters. Suffice it to say that the revenues for the first half of 2006 have already surpassed revenues for all of 2005. The current funding will enable the Company to expand into additional international markets, to increase our activities in existing markets, and to duplicate the existing company successes in Europe and North America. We are glad that Poalim Ventures has joined our current shareholders, and welcome their representative to the Company’s board of directors,” stated Zagagi.