BERKELEY, Calif- On the heels of a partnership agreement with Siemens information and Communication Mobile announced earlier this week, Idetic, a developer of wireless network management software, has started raising its first round of financing after a series of acquisition discussions with undisclosed suitors, Phillip Alvelda, chairman, co-founder, and chief executive, told VentureWire.

As a part of the partnership deal, Siemens IC Mobile, the German electronics company’s wireless devices unit, will license Idetic technology for its mobile Internet products portfolio. The agreement also includes joint product development. Mr. Alvelda declined to say whether Siemens has taken an equity stake in Idetic.

Idetic released its first product in March 2001 and started generating revenue in November 2001. Its product is called Far Reach, a network management platform for wireless carriers and network operators. Mr. Alvelda said the company began acquisition discussions with a number of companies late last year. Idetic has received at least one offer, which it refused.

This first round targets between $4 million and $7 million from venture capital firms and strategic partners. The projected up round is expected to close within two months. The company raised approximately $2 million in its first seed round of financing in December 2000.

Existing investors Gefinor USA, Inman Ventures, and Big Sky partners have expressed interest in this latest round and together are expected to contribute up to $1 million in the series B round, Mr. Alvelda said. Gefinor USA and Inman Ventures have merged into a new entity called Gefinor Ventures since their individual investments in Idetic.

The proceeds of the round will be used to pursue deals with OEMs, to pursue new business initiatives in Asia and Europe, to increase its patent portfolio, to increase its technical staff, and for product development.

Founded in November 1999, Idetic employs 12 and its headcount is expected to increase to almost 40 by the end of the year. Mr. Alvelda said the company has its feelers out for the right person to succeed him as CEO in what he Described as the next progression for the company.

Idetic’s management team consists of Paul Scanlan, co-founder and vice president of marketing; Jeremy DeBonet, chief technology officer; Ed Coleman, vice president of business development; Jeff Annis, co-founder and director of product development; and Todd Stiers, director of software development. The company’s three founders, Messrs. Alvelda, Scanlan, and Annis, serve on the board. Mr. Alvelda said it will be reconfigured after the upcoming round.

The company’s board of advisors includes Admiral Bob R. Inman, former deputy of the NSA and CIA; Vern Stevenson, CEO at Broadstorm and former managing director at Siemens Mustang Ventures; Ken Zerbe former chief financial officer at Apple Computers; Saed Younis, vice president of business development at Qualcomm; Moira O’Hara, sales director for network and infrastructure at Lucent; and Mukta Mukherjee, senior manager for wireless Internet strategy group at Lucent.

Siemens IC Mobile and Idetic Form Partnership to Offer High-Performance Data Acceleration and Network Optimization

BERKELEY, CA – April 19, 2002 –Siemens Information and Communication Mobile (IC Mobile), is a leading provider of mobile solutions, including mobile devices, infrastructure and applications, and Idetic, Inc., providers of software and services that improve the performance of wireless data transmission, today announced their cooperation to provide next-generation mobile Internet services. Together, the two companies will leverage on another’s best-in-breed strengths to offer end-to-end mobile network optimization technology.

With this partnership, Siemens IC Mobile is licensing the Idetic Far Reach technology for integration into their Mobile Internet product portfolio to provide high-performance data delivery acceleration and transaction management. Siemens IC Mobile’s effective sales channel and expansive installed customer base will enable immediate global distribution of Idetic’s acceleration technologies to address the carrier demand for better wireless network efficiencies and faster mobile access to broader Internet data, including email and Web content. Network operators that deploy the newly developed Siemens products will experience a significant increase in their network performance and capacity. There performance enhancements will enable operators to generate new premium revenues while offering their subscribers up to 4-10 times faster wireless access to email and Internet content.

The Idetic Far Reach platform adds intelligence, performance and speed to both existing and future networks. With this new software technology, operators can deliver high-performance data services while maximizing their network value. Moving forward, the two companies will continue to engage in significant co-development efforts to identify and address new opportunities to improve wireless network efficiency and performance.

About Siemens:
The Siemens Information and Communication Mobile Group (IC Mobile) offers the complete range of mobile solutions including mobile devices, infrastructure and applications. Devices include mobile phones, wireless modules, mobile organizers and cordless phones as well as products for wireless home networks. The infrastructure portfolio includes GSM, GPRS, and 3G mobile network technologies from base stations and switching systems to intelligent networks, e.g. for prepaid services. Mobile Applications cover end-to-end solutions for messaging, Location Based Services or Mobile Payment. For the fiscal year of 2001 (September 30), IC Mobile recorded sales of EUR 11.3 billion and employed 30,730 people worldwide. You can access further information about Siemens IC Mobile on the Internet at www.siemens-mobile.com.

About Idetic:
Idetic, inc. is a privately held company in Berkeley, CA, that was founded in January, 2000, to develop and market bandwidth acceleration and management software. Building on its core technology competencies in compression, networking protocols, and highly scalable architectures, the company delivers Idetic Far Reach™, a carrier-class optimization and acceleration platform for wireless carriers and network operators. For more information about Idetic, please visit the company Web site at www.idetic.com.