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Private Equity Week Wire — Monday 3/25

SAN JOSE, CA — IntruVert Networks, a developer of next generation
intrusion detection systems (IDS), today announced it has raised approximately
$15 million in Series B funding from premier venture firms: ComVentures,
Trinity Ventures and Raza Foundries.

This latest financing will be used to launch and market the company’s
products to enterprise and government customers.

MONTVALE, NJ — Memory Pharmaceuticals Corp., a privately held company developing drugs for the treatment of neurological and psychiatric diseases, announced today that it has raised approximately $40 million in a private financing to advance the company’s research and product development efforts. Biomedicine LP, an affiliate of International BM Biomedicine Holdings served as the lead investor. Global Biomedical Partners, as the exclusive investment advisor to IBMH, represented Biomedicine L.P. in this transaction.

New investors participating in this round include Yamanouchi Venture Capital, Mitsubishi Corporation, Mitsubishi International Corporation, SG Cowen Ventures, Bioveda Capital, and Yasuda Enterprise Development Company. Previous investors participating include Oxford Bioscience Partners, Venrock Associates, Orbimed Advisors, Alta Partners, S.R. One Limited, HealthCare Ventures, GIMV, Medica Venture Partners, The Invus Group, Global Life Science Limited Partnership, and Rho Ventures. Bear, Stearns & Co. served as placement agent for this transaction.

SAN FRANCISCO — Grand Central Communications Inc., provider of the leading Web Services Network, announced today that it has raised $23 million in a Series B-round of financing, bringing the company’s total private equity funding to more than $28 million. Institutional investors include: Benchmark Capital, JGE Capital, Merrill Lynch (NYSE: MER), Gryphon Investments, Goldman Sachs (NYSE: GS) and Morgan Stanley (NYSE: MWD).

SAN FRANCISCO — Yipes Communications, Inc., the defining provider of instantly scalable Ethernet services, today announced that it is seeking to restructure its business to enhance future growth opportunities.
Yipes has filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court in San Francisco, California. This move will assure Yipes’ ability to continue its business operations uninterrupted during the reorganization. Yipes has made arrangements for debtor-in-possession financing. This additional financing will allow Yipes to continue offering its existing customers 24×7 service and support, activate new customers and otherwise conduct business.

Yipes has raised over $290 million of VC funding from such firms as Charter Growth Capital, Sprout Group, Norwest Venture Partners, 3Com Ventures, New Enterprise Associates, JP Morgan Partners, BancBoston Capital, Soros Private Equity Partners, Focus Capital and Intel Capital.

LOS ALTOS, CA — Radiance Technologies is expected to announce today it has secured $13.4 million in Series B funding. New investors Vanguard Ventures and Sutter Hill Ventures co-led the round, which officially closed in mid-March. The two firms were the only two institutional investors involved in the financing. The rest came from individuals. For more, check out today’s Private Equity Week story on the deal (sub required).

ACTON, MA — Paceline Systems Corp. today launched the company with
the announcement of the industry’s first enterprise-class InfiniBand(TM)
switching systems. The company’s powerful switching systems feature embedded
Paceline Apex software, which delivers the performance of InfiniBand with the
manageability, reliability and ease-of-use required for enterprise

Paceline is a leading developer
of InfiniBand fabric solutions for enterprise data centers. The company’s
powerful switching systems feature Paceline’s Apex software, which delivers
the performance of InfiniBand with the manageability, reliability and
ease-of-use required for large enterprise and service provider environments.
Paceline is funded with more than $21 million from blue-chip venture capital
firms that include BancBoston Ventures, Kodiak Venture Partners, Commonwealth
Capital, ABS Ventures and Goldman Sachs.

FREMONT, CA — Ikanos Communications, developer of Smart Silicon For Profitable Broadband(TM), today announced that it has received additional investments in its final round of Series C funding from strategic investors. In addition to Ikanos’ existing investors there are two new participants in the latest round of its Series C funding; Presidio Venture Partners and Panasonic. These strategic investors will help Ikanos grow its customer base in the Asian broadband market. Previous Ikanos investors include Anthelion Capital, Greylock Partners, Intel Capital, JPMorgan Partners, Sequoia Capital, Ridgewood Capital, Telesoft Partners, VentureTech Alliance (an affiliate of Taiwan Semiconductor Manufacturing Company–TSMC), and Walden International.

Total Series C funding now stands at $35 million, and total funding secured to date is more than $52 million. Ikanos will use the new capital to continue to gain customer traction, particularly in the rapidly growing Asian broadband markets, where the company has already received an overwhelming response for its programmable chipsets.

— QualMark Corp. (Nasdaq:QMRKC) today announced that on March 20, 2002 the Company received notification from the Nasdaq Listing Qualification Panel that the Panel was of the opinion that QualMark Corporation presented a definitive plan that will enable it to comply with all requirements for continued listing on The Nasdaq SmallCap Market. This plan included a binding agreement by Roser Ventures LLC to make a one million dollar investment in the Company.

The terms of the agreement will be announced in a subsequent Form 8K filing. The goal of the Company and Roser Ventures is to close this transaction on or before March 29, 2002.

CANTON, MA — In connection with their ongoing cases under Chapter 11 of the U.S. Bankruptcy Code, Casual Male Corp. and its debtor subsidiaries today announced that they have entered into an Asset Purchase Agreement to sell Casual Male’s men’s big and tall apparel retail and direct marketing, loss-prevention and alarm monitoring and servicing businesses to an affiliate of Charlesbank Capital Partners, LLC. The purchase price for the assets to be sold pursuant to the Agreement is $137.0m plus the assumption of specified liabilities. Certain assets not relating to the ongoing businesses, such as accounts receivable, will be retained by the estate to further enhance recovery to Casual Male’s creditors. Under the Agreement, Casual Male’s approximately 3,000 employees will be employed on the same or substantially similar terms as they are currently employed. The Agreement also contemplates the transfer of 473 retail stores.

ARLINGTON, VA — AHL Services Inc.
(Nasdaq: AHLS), a leading provider of marketing services in the United States
and specialized staffing services in Europe, announced today the sale of its
UK staffing business to a UK-based private equity group for total
consideration of $29.5 million. Net of transaction costs, the sale will yield
$26.8 million of proceeds, which will be used to reduce AHL’s outstanding bank
debt. In addition, AHL will realize an incremental $5 million in funds from
the UK holding company.

MANCHESTER, NH — Syntrex, a leading international developer of solutions for secure data exchange over public networks, today announced it has raised additional funding from 3i Group, a leading international venture capitalist which specializes in investing in companies with high growth potential with the aim to maximize both their value and market success.

HONG KONG & WASHINGTON — Darby Overseas Investments, Ltd. of Washington DC has acquired Prumerica (formerly “Prudential”) Asia Infrastructure Investors (PAII) from an affiliate of Prudential Financial, Inc. (NYSE: PRU) announced Richard H. Frank, Darby’s Chief Executive Officer. PAII is the Hong Kong based manager of the $246 million Asian Infrastructure Mezzanine Capital Fund (AIMCF).

— Tri-State Growth Capital Fund I LP announced March 20 its commitment to two leading venture capital funds that focus on early-stage life sciences companies. Commitments to Cincinnati-based Senmed Medical Ventures I, L.P. and Boston-based Oxford Bioscience Partners IV, L.P. demonstrate Tri-State Fund’s strategy of investing in leading regional and national funds as a way to jump- start development of early-stage technology companies in the tristate region.

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