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Transparent Networks Signs Agreement with Silicon Microstructures - SMI - to Procure MEMS Foundry Service

    MILPITAS, Calif.--Sept. 4, 2002--

SMI's QS-9000 Qualification Plan and Conversion to 6" to Benefit Customers

    Transparent Networks, Inc., developer of highly integrated photonic telecommunications systems, today announced that it has signed a MEMS foundry services agreement with Silicon Microstructures, Inc. (SMI), a wholly-owned subsidiary of Elmos Semiconductor AG. Transparent Networks will fabricate at SMI its MOEMS and MEMS components for integrated photonic switches, including 3D mirror arrays, 3D fiber aligners and components for photonic integrated circuits.
    SMI ships substantial volume of MEMS products including automotive pressure sensors and a number of high performance medical and industrial parts. It has recently acquired the MEMS wafer fab operations located in Milpitas, Calif., from IC Sensors. Dr. Jim Knutti, President of SMI, stated, "I am very happy with the recent acquisition of the wafer fab operations of Silicon Valley MEMS pioneer, IC Sensors. This will allow us to consolidate our wafer fab facilities currently located in Southern and Northern California and increase the volume production capabilities in response to demands from our high volume OEM customers. We plan a significant short term upgrade and expansion of the former IC Sensors facilities well as QS-9000 standard certification to meet the automotive quality requirements of our customers."
    "We are excited with SMI's planned fab investment, because automotive quality requirements are more stringent than Telcordia & NEBS required by telcom industry" said Dr. Janusz Bryzek, President and CEO of Transparent Networks. "TNI has developed advanced MEMS & MOEMS components for the telecommunications market and as we are completing the development phase, we started to focus on reliability issues. SMI investment thus comes at the perfect time for us."
    "Our MEMS products are developed in high aspect ratio bulk silicon micromachining technology," continued Bryzek. "There are very few MEMS foundries in the world preparing for QS-9000 audit offering this technology and only one, SMI, is physically located next door enabling our engineers to hands-on develop new critical processes."
    Knutti added: "The high aspect ratio silicon micromachining processes previously developed by Transparent and the former IC Sensors R&D group that is now part of SMI will form an excellent foundation for the next generation of our automotive products we plan to introduce in near future."

    About Transparent Networks

    Transparent Networks, Inc. is a Silicon Valley startup company developing highly integrated telecommunications systems based on MOEMS and photonic ICs, which radically reduce carriers' costs in providing optical services and transport. The company has developed the "intelligent Thin Optical Switching Systems" (iTOSS(TM)), highly integrated network components delivering system functionality on a chip based on MOEMS technology, photonic integrated circuits, and integrated optical technologies. The very high level of functional incorporation of integrated photonic circuits offers "pay-as-you-grow" scalability with low entry cost and easy operational implementation enabling the use in existing carrier networks.
    The company was funded in 2000 by top tier VC firms, USVP and Benchmark.
    For more information on Transparent, please contact Suzy Seebold at 408/582-1909 or visit Transparent Networks' web site at www.transparentnetworks.com.

    About Silicon Microstructures

    Silicon Microstructures, Inc. is a full commercial supplier of both standard and custom pressure sensors and other microstructures. Customers range from high volume automotive users to companies requiring precision sensors for medical and industrial applications. SMI's capabilities cover all phases of business development, design, qualification, manufacturing, and customer support.
    SMI was founded in 1991 and became a subsidiary of Elmos Semiconductor, AG in 2001. System level MEMs with signal processing capability results from SMI's relationship with Elmos.
    For more information on SMI, please contact Dr. Jim Knutti at 408/473-9777 or visit SMI's web site at www.si-micro.com.

    Note to Editors: Transparent Networks, Transparent Networks logo, LambdaMirror, iTOSS are registered trademarks of Transparent Networks, Inc. or its affiliates in the U.S. and certain other countries. All other trademarks mentioned in this document are the property of their respective owners.