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Additional Investment Earmarked for Product Development of First Ethernet PON Chipset.

TEL-AVIV, Israel–(BUSINESS WIRE)–Dec. 12, 2002–Passave Inc., a world-leader of end-to-end silicon solutions for Ethernet Passive Optical Networks, today announced that Intel Capital has joined as the newest investor in Passave.

Broadband access is taking a new form by incorporating optical fiber into the first mile infrastructure. Today’s networks based on Ethernet solutions, standardized by the IEEE 802.3ah EFM task force are revolutionizing the cost structure in this field. Now more than ever carriers require cost effective solutions that do not sacrifice the service offering required to compete.

Passave is providing the chipsets required to fuel the Ethernet Access revolution. Standard compliant EPON chips from Passave enable low cost solutions based on the IEEE standard. Passave is supplying standard compliant solutions and helping its system partners to introduce products quicker with less risk while answering carriers’ demanding requirements.

“We are excited to welcome Intel Capital as an investor” said Ariel Maislos, President of Passave Technologies, “We plan to use these funds to add to our R&D investment of the first Ethernet PON chipset. Wide availability of standard complying chips helps reduce systems cost, and accelerates deployment of FTTH services worldwide.”

“Optical Ethernet in the first mile is a next step in the evolution of broadband access. Passave’s approach to developing EPON technologies in this emerging market, is responding to the market’s needs.” added William Kilmer, Strategic Investments Manager at Intel.

“The downturn has been tough particularly in telecoms, however we are reassured that our products and our strategy are addressing the right market at the right time,” added Menashe Ezra, Passave’s Chairman and Managing Director at BRM Capital.

The funds raised complete Passave’s first round of investment, and are intended to finalize product design of Passave’s first generation chipset, and commence shipment to initial customers.

About Passave:

Passave Inc. is a fabless system-on-chip vendor, developing core technology for broadband fiber access systems. Passave delivers complete solutions expediting the design process for system vendors, while dramatically reducing product cost and enabling interoperability. By delivering technically complex solutions on low-cost silicon, Passave expands the market for fiber access networks with significant functional improvement and cost reduction in fiber-based Central Office and Customer Premise Equipment. Passave’s portfolio includes the PAS5001 OLT chip, and PAS6001 ONU chip which provide an end-to-end solution for Ethernet Passive Optical Network (EPON) system design based on the IEEE 802.3ah standard.

For more information, visit, or contact Passave at, +972 (3) 688 7272 ext 10 or fax +972 (3) 688 7062.

About Intel Capital

Intel Capital, Intel’s strategic investment program, focuses on making equity investments and acquisitions to grow the Internet economy in support of Intel’s strategic interests. Intel Capital invests in hardware, software and services companies in several market segments, including computing, networking, and wireless communications. For more information, visit


Ariel Maislos, +972 (3) 688 7272 ext 10