Companies will team to accelerate adoption of Tropos MetroMesh systems in new markets around the world

SUNNYVALE, CA - SEPTEMBER 20, 2005 -- Tropos Networks Inc., the leading supplier of equipment used to build metro-scale Wi-Fi mesh networks, today announced that Siemens Venture Capital, a subsidiary of Siemens AG, has made a strategic investment in Tropos. In this context, the Siemens Communications Group will evaluate Tropos MetroMesh systems for use in new geographic and vertical markets. Terms of the funding agreement were not disclosed.

“We are pleased to make this strategic investment in Tropos Networks, the clear leader in the metro-scale Wi-Fi mesh networking system market,” said Louis Rajczi, Vice President & Investment Partner, Siemens Venture Capital. “We look forward to teaming with Tropos to facilitate adoption of their fast, low-cost and simple MetroMesh systems in new geographic markets, as well as in vertical markets such as carriers, intelligent transportation systems and energy production and distribution.”

Christoph Caselitz , President of Mobile Networks at Siemens Communications, said, “Mesh techniques represent the next logical step in development for Wi-Fi radio networks, as can now be found in ever more offices, homes and public buildings. Here we see a lucrative market for service providers and mobile operators.”

“Siemens’ investment is another indication of the exceptional opportunity in the metro-scale Wi-Fi mesh networking market and of Tropos’ leadership within that market,” said Ron Sege, President and CEO of Tropos Networks. “We look forward to working with Siemens to further expand our already unmatched installed base of 200+ customers in more than 25 countries. This strategic partnership will help to accelerate our growth by developing additional geographic markets worldwide and selling into new application spaces, including the carrier market.”

Metro-scale mesh networks deliver city-wide fixed and mobile broadband access via a scalable, reliable and secure Wi-Fi infrastructure. Mesh routers form a self-configuring and self-healing wireless broadband data network that dynamically self-organizes as routers are added or subtracted, backhaul supplied or removed, and interference comes and goes. The network forwards client data from mesh router to mesh router to a wired Internet connection. The result is a large scale Wi-Fi deployment with high throughput that does not require wired backhaul to each access point, installer truck rolls or expensive and complex client devices and software. A Wi-Fi mesh network can be deployed at a multi-square-mile scale in a matter of days, providing a broadband experience indistinguishable from indoor wireless and wired networks.

Tropos MetroMesh routers quickly and economically use the intelligent Tropos Predictive Wireless Routing Protocol (PWRP™) to provide pervasive coverage over metro areas. PWRP forms a wireless mesh, dynamically routing traffic along the highest throughput path to an Internet connection. This intelligent routing negates effects of radio frequency (RF) interference, backhaul failure and mesh router failure. PWRP scales to thousands of nodes with the lowest routing overhead in the industry. Network support costs are minimized via the central management capabilities of the Tropos Control element manager, a configuration, monitoring and maintenance tool. The result is unprecedented bandwidth on the street, easy and low cost installation and operation, and true metro-scale coverage.

Metro-scale Wi-Fi mesh networks implemented with Tropos MetroMesh routers allow public safety agencies, municipalities and service providers to quickly and easily deliver city-wide fixed and mobile multi-megabit connectivity for IP-based voice, video and data applications.

About Tropos Networks, Inc.
Tropos Networks is the proven leader in delivering truly ubiquitous, metro-scale Wi-Fi mesh network systems. We deliver the fastest, lowest cost and simplest wireless broadband access solutions, as demonstrated by the world’s largest installed base of metro-scale Wi-Fi mesh networks. Our innovative MetroMesh™ architecture with our patented Predictive Wireless Routing Protocol™ (PRWP) allows public safety agencies, municipalities and service providers to quickly and easily deliver city-wide fixed and mobile multi-megabit connectivity for IP-based voice, video and data applications. PWRP is the first and only metro-scale optimized, radio-agnostic, wireless mesh routing protocol, which does with routing software what other approaches attempt to do with expensive hardware. The result is 10x better price/performance than any other approach to the broadband last mile. Tropos Networks is headquartered in Sunnyvale, California. For more information, please visit www.tropos.com, call 408-331-6800 or write to info@tropos.com.

Tropos Networks, Tropos, MetroMesh, PWRP and Metro-Scale Mesh Networking Defined are trademarks of Tropos Networks, Inc. All other brand or product names are trademarks or registered trademarks of their respective holder(s).

About Siemens Venture Capital
Siemens Venture Capital (SVC) is the $600 million corporate venture organization for Siemens AG, (NYSE:SI) one of the largest global electronics and engineering companies with reported worldwide sales of $91.5 billion in fiscal 2004. The goal of SVC is to identify and fund investments in emerging and innovative technologies that will enhance the core business scope of Siemens, particularly in Information and Communications, Automation and Control, Medical Solutions, Automotive Technology and Transportation Systems, Power, and Lighting.

With offices in Munich , San Jose (CA), Boston (MA) and through Siemens Israel, Ltd. in Herzliya near Tel Aviv, SVC has invested in more than 100 start-up companies and 30 venture capital funds, and plays a key role in the global network of innovation.

SVC is part of a greater network at Siemens whose mission is to drive technological innovation by supporting start-up companies. In addition to Siemens Venture Capital, also Siemens Acceleration in Communications, Siemens Technology Accelerator, and Siemens Technology-To-Business Center contribute to the innovation strategy of Siemens. Their individual mandates are defined according to financing stages and industry focus. More: www.siemensventurecapital.com

About Siemens Communications
Siemens Communications is one of the largest players in the global telecommunications industry. Siemens is the only provider in the market that offers its customers a full-range portfolio, from devices for end users to complex network infrastructures for enterprises and carriers as well as related services. Siemens Communications is the world’s innovation leader in convergent technologies, products and services for wireless, fixed and enterprise networks. It is the largest Group within Siemens and operates in more than 160 countries around the world. In fiscal 2004 (year-end September 30), its 60,000-strong workforce posted sales of approximately 18 billion euros.

More about Siemens Communications at http://www.siemens.com/communications.