ColorChip Closes $9.5 Million Financing Round

January 12th, 2006-ColorChip, a leading manufacturer of glass-based Planer Lightwave Circuit (PLC) chips and modules for the Fiber To The Home (FTTH) networks, today announced that it has closed a $9.5M financing round led by Bessemer Venture Partners and joined by Motorola Ventures, the venture capital arm of Motorola Inc. (NYSE: MOT) and European Venture Partners(www.evp.co.uk) .Also participating were existing investors Eurofund (www.eurofund.co.il), Polytechnos (www.polytechnos.com), and Walden (www.walden.co.il).

According to Moshe Price, CEO of ColorChip, the proceeds will enable the company to move from the development to the mass production stage, expanding efforts in marketing and sales and R&D for different applications in new markets.

"We are thrilled to have as a major investor, Bessemer Venture Partners, who are experienced investors in the communications field with an excellent track record, including several recent successful investments in Israel. We are honored by the strategic investment from Motorola, a global communications leader," Added Moshe Price.

The company is currently shipping first samples of its Meteor II FTTx SOG(TM) Transceivers for optical network terminals (ONT/ONU) for GPON and EPON. ColorChip is also distributing PLC splitters - based on the company's breakthrough Ion-Exchange process - mainly to the FTTx, CATV, analog and digital PONs markets.

Bob Goodman, General Partner at Bessemer Venture Partners stated:

"Bessemer is pleased to lead this financing in ColorChip. ColorChip has a unique PLC technology in the field of transceivers for FTTH and other applications, and we believe that ColorChip will become a leading player in this 'hot' and fast growing market."

"We are glad to join as strategic investors in ColorChip," said Matthew Growney, managing director of Motorola Ventures. "This investment is another link in the series of Motorola investments, emphasizing Motorola's belief and commitment to bring BroadBand services to consumers' homes. We believe that in the years to come, fast internet services such as IPTV, Interactive Gaming and rich content services, will lead the broadband Information Technology (IT) revolution at home."

For more information about Bessemer Venture Partners please visit http://www.bvp.com

For more information about Motorola please visit http://www.motorola.com