September 15, 2003

Allen, Texas, August 15, 2003 – Xtera Communications Inc. today announced it has closed on $30 million of new financing. At a time when investments in the long haul space are rare, this level of funding is a clear expression of the confidence that investors have in Xtera. "We are very gratified with the level of support that our investors are showing in our company" said Chris Ryan, CFO of Xtera. "Our investors are providing us with the financial strength and stability to execute our strategic plan to deliver the most reliable, cost effective DWDM products." Xtera’s existing investors provided the majority of the financing.

About Xtera Communications

Xtera Communications specializes in network infrastructure that delivers the highest capacity, reach and density. Our long-haul, Submarine, Metro and WAN technologies together with our deployment expertise drive customer success and long term value.

Xtera offers an extensive portfolio of Optical Transport solutions for long-haul, regional, metropolitan and sub-sea networks, and WAN Traffic Management solutions for both enterprise and telecom companies.  

With deployments in four continents, Xtera’s Optical Transport portfolio helps service providers worldwide reach new markets via new deployments, and extends the life of their existing network assets with cost-effective upgrades. Xtera's innovative Traffic Management solutions offer customers the best price/performance in network optimization.

Xtera delivers compelling advantage to its customers by maximizing network capacity, reach and value.

For more information, please visit www.xtera.com