Percello Raises $12 Million to Fund Accelerated Growth

Granite Ventures and Vertex Venture Capital Co-Lead Series B Financing Round,
T-Mobile Venture Fund Joins as Strategic Investor

RA'ANANA, Israel, Sept. 9 /PRNewswire/ -- Percello Ltd., an Israeli
fabless semiconductor company, today announced the completion of a $12 million
Series B financing. The company is developing baseband processors for the 3G
and LTE femtocell market. A femtocell is a small cellular access point,
typically designed for use in residential or small business environments, and
the femtocell concept is considered a revolution in mobile network
architecture.
The round was co-led by US-based Granite Ventures and Israel-based Vertex
Venture Capital. The company also welcomed T-Mobile Venture Fund from Germany
as a strategic investor. The capital raised will be used primarily to complete
product development and to initiate sales and marketing activities.
The company's $6 million Series A was led by 7-Main Ltd. This capital was
used to establish the team and the foundation of Percello.
"Percello is a market enabler via the PRC6000, which offers the highest
level of integration, the most advanced features and the most efficient power
consumption at the best price," said Percello CEO Shlomo Gadot. "These are all
key product attributes necessary for new mass market cellular technologies."
"We are very pleased to welcome such strong partners to our board. Granite
Ventures, Vertex Venture Capital and T-Mobile Venture Fund together with the
existing investor 7-Main Ltd understand and share our vision," said Gadot. "We
believe that having this international representation from North America,
Israel and Europe provides us not only with considerable financial support but
also with essential business expertise and a valuable network across the
globe."
"Vertex strongly believes in femtocells and their benefits to mobile
operators and consumers," said Manuel Timor, Partner at Vertex Venture
Capital. "We think that Percello has all it takes to become the market leader.
The company's products solve the femtocell industry's needs for feature
richness and cost effective solutions. The company's unique technology, large
potential market and experienced team made it easy for Vertex to invest in
Percello."
"Granite is convinced that femtocells will have a profound impact on how
wireless networks are designed and utilized -- giving wireless operators a
strong position in the digital home and presenting subscribers with mobility
options they've never imagined." said Eric Zimits, Managing Director, Granite
Ventures. "We are impressed with Percello's execution and vision. By
identifying the femtocell opportunity early and assembling an accomplished
engineering team, Percello is well suited to enable mass market adoption of
this important new technology."
"T-Mobile considers femtocells as an important technology going for mobile
broadband," said Dr. Klaus-Jurgen Krath, Senior Vice President of Radio
Network Engineering and Quality, T-Mobile International says. "The baseband
chip that Percello develops is the most critical component related to quality
and mass market compatible price points. Percello's team has a strong track
record and we highly welcome them strengthening the growing femtocell
ecosystem."
A femtocell is a small cellular access point, typically designed for use
in residential or small business environments. It connects to the service
provider's network through the consumer's DSL, cable or fiber optic broadband
connection and allows service providers to extend service coverage and
capacity indoors, especially where access would otherwise be limited or
unavailable. The consumer will benefit from excellent mobile coverage,
bandwidth and additional services at landline rates.
Percello was founded in 2007 by an experienced team led by Shlomo Gadot,
former co-founder and co-CEO of Modem Art (was acquired by Agere in May 2005
for $145M), Rafy Carmon, VP R&D, and Yoav Volloch, as VP Product Management.
Percello's team has vast experience in UMTS cellular technology as well as
developing low cost and low power SoC.
About Percello:
Percello is a fabless semiconductor company developing digital baseband
processor chips, the main component inside the femtocell CPE (Customer
Premises Equipment), for the 3G and LTE femtocell market.
Percello's first chip, PRC6000, is the first worldwide SoC (System on a
Chip) solution dedicated for the emerging 3G UMTS femtocell market. The chip
is a highly integrated device supporting all femtocell backhauling functions
such as timing, security and others. PRC6000 is compliant to 3GPP Rel 7
baseline and is capable of delivering 21.6Mbps downlink and 5.76 uplink.
For more information about Percello, please visit http://www.percello.com
About Vertex Venture Capital
Vertex Venture Capital is a unique top-tier Israeli VC with $600 million
under management, a strong international investor base, an experienced
multi-disciplinary team of professionals and an impressive track record of
exits through M&A and IPO. Vertex provides unparalleled possibilities for
companies in facilitating potential growth, business opportunities and
leveraging synergies throughout Israel, Europe, USA, Japan and Asia. Vertex
invests in Israeli and Israel-related companies in early stages of development
in information networking and communications systems, software and components,
digital media and enterprise software.
For more information about Vertex Venture Capital, please visit
http://www.vertexvc.com.
About Granite Ventures
Granite Ventures has been helping early-stage technology companies build
solid foundations for success since 1992. Granite has managed over $1 billion
in venture capital and has invested in more than 100 private companies. They
partner with promising and successful entrepreneurs to create businesses that
have a competitive edge, and help those businesses achieve category
leadership. More information can be found at http://www.granitevc.com.
About T-Mobile Venture Fund
The T-Mobile Venture Fund is managed by T-Venture, the venture capital
entity of Deutsche Telekom. The activities of the T-Mobile Venture Fund
provide T-Mobile with an innovative edge and strong commercial synergies.
T-Mobile International is one of the world's leading companies in mobile
communications. As one of Deutsche Telekom's three strategic business units,
T-Mobile concentrates on the most dynamic markets in Europe and the United
States. For more information about T-Venture and the T-Mobile Venture Fund,
visit http://www.t-venture.com.
About 7-Main Ltd
7-Main Ltd is the family office and investment arm of Ms. Ruthi
Wertheimer. The core investments of 7-Main Ltd focus on direct investments as
a long-term investor.
SOURCE Percello Ltd.

Shlomo Gadot, CEO of Percello Ltd., +972 9 775 1001, Cell, +972-54-4745239