Talari Networks Lands $6.2 Million Funding Led by Menlo Ventures

Pioneering Vendor of Adaptive Private Networking Attracts Investment to Expand R&D Team by Providing Businesses with Cost Savings in Tough Times

San Jose, Calif., and Raleigh, N.C., Jan. 27, 2009 — Talari Networks™, Inc., the pioneering leader in providing high-bandwidth, high-reliability Enterprise WANs at consumer Internet pricing, today announced that the company has raised a $6.2 million round led by Menlo Ventures and also including existing private investors. The capital is expected to fund a significant expansion of research and development operations in North Carolina’s Research Triangle area.

“We’re excited to be able to help Talari Networks bring Internet economics to business-quality WANs,” said Hal Calhoun, managing director of Menlo Ventures. “Adaptive Private Networking’s unique ability to substantially lower IT operating costs without sacrificing reliability makes an important contribution to the marketplace in today’s difficult business climate.”

“We’re delighted that Menlo Ventures shares our vision for delivering both value and reliability to help businesses large and small meet their technical and economic challenges,” said Andrew Gottlieb, founder and CEO of Talari Networks. “In a tough environment for both business funding and employment, we’re pleased to attract investment that lets us provide local opportunities and continue to grow our world-class engineering team in order to strengthen our leadership and meet the needs of our growing customer base.”

Customer Adoption

“Our deployment of Talari equipment to connect overseas locations has proved both cost-effective and reliable,” said Chip Greel, director of information security at Finisar Corporation. “We’ve been able to save several thousand dollars a month in bandwidth costs versus the other approaches we evaluated.”

“Thanks to Talari Networks, Grant County has been able to extend its tele-psychiatry program to locations that didn’t have a reliable network connection to support high-quality video” said Darla Boothman, director of finance & information services at Grant Mental Healthcare. “Talari’s combination of higher reliability and greater bandwidth improved our video quality to allow our care providers to see more patients, while saving on travel costs at the same time.”

Adaptive Private Networking Technology

Talari’s Adaptive Private Networking™ (APN) approach leverages standard VPN technology for secure data delivery and uses end-to-end algorithms for dynamic, real-time, per-packet traffic engineering. It continuously measures loss, latency, and jitter and adapts network traffic flow almost instantly, delivering reliable and predictable application performance that leverages all available bandwidth sources. APN solves the reliability problems often associated with running VoIP and videoconferencing on shared IP WANs, and it can be added seamlessly to existing networks.

“In recent years the most dramatic advances in access bandwidth and cost-performance have come in the consumer space, but without much attention to the additional requirements of business: scalability and reliability,” said Peter Christy, principal, Internet Research Group. “Talari’s contributions are precisely in this area, translating the benefits of consumer services to meet the requirements of business.”

About Talari Networks

Talari Networks does for Enterprise WANs what RAID did for storage – delivering a network with 30 to 100 times the bits per dollar, ongoing WAN costs reduced by 40% to 90%, and greater reliability than existing corporate WANs – bringing Moore’s Law and Internet economics to Enterprise WAN buyers, outsourcers and MSPs for the first time in 15 years. For more information, please visit www.talari.com. Talari Networks…Swift and Sure.