RedMere Technology Ltd. secures US$8.2m in Series A Venture Financing. Funding will accelerate the release of ground-breaking communications products targeted at consumer multimedia products.

Drogheda, Ireland - 15 October, 2006:  RedMere Technology Ltd., a fabless semiconductor company delivering communications ICs which increase the reliability and reduce the cost of high-speed communication channels, today announced the closing of a US$8.2 million Series A preferred round of financing.  The round was led by Celtic House Venture Partners and included syndicate partners Enterprise Ireland, 4th Level Ventures and Enterprise Equity as well as follow-on investment by seed round investors.

RedMere will use the funds to expand the application of its ground-breaking communications technology into a family of HDMI products addressing Consumer Electronics platforms such as High-definition TVs, Media Centres, Media PCs, Set-top-boxes, Projection Systems, Home Theatre Systems, DVD Recorders and Personal Video Recorders.  RedMere will also increase its Marketing and Sales operations in the United States and Asia.

The HDMI market is experiencing rapid growth estimates of which are being revised upwards.  In September 2004 the research house In-Stat estimated that there would be in excess of 110 million HDMI-enabled units produced by 2008.  By December 2005 In-Stat had revised its estimates upwards, predicting over 250 million HDMI units in the same time, a trend recognised early by RedMere.

RedMere is sampling its HDMI receiver products today.

Peter Smyth, CEO of RedMere said: "With over $500m in assets under management, Celtic House is one of the most powerful technology investors in the international venture market. They also bring great experience in the fabless semiconductor and Consumer Electronic (CE) markets. We are very happy to have such a major North American player lead this round of funding alongside two Irish venture firms. With this new investment and the continued backing of our early investors we are on track to launch exciting multiple product lines to the market in 2007."

Roger Maggs and Brian Antonen, partners at Celtic House Venture Partners, join the board of RedMere Technology as non-executive directors. Commenting on the investment Mr. Maggs said: “In RedMere, we have identified a ground-breaking communications technology for differential signalling systems, with applications in storage, consumer and PC markets.  RedMere’s technology enables significant cost and performance gains in the most challenging communications environments.”

RedMere’s Chief Technology Officer, Dr. John Horan, said: “RedMere’s technology is ideally suited to addressing the cost and reliability requirements of CE equipment.  As high-performance networking technology moves from computing platforms to household electronics equipment, manufacturers need ultimate reliability at the low price points which fuel their market growth. This funding allows us to ramp production of our advanced differential signalling technology to meet these needs.”

About Celtic House Venture Partners:

Celtic House Venture Partners, a private venture capital firm, is a leading investor in early-stage technology companies in North America and Europe. Celtic House is actively investing its third fund of US$225 million in semiconductors, systems and software start-ups. Celtic House’s current portfolio includes: Cavendish Kinetics, Diablo Technologies, Fresco Microchip, Got Corp, Novx Systems, RedMere Technology, Sandvine, Sirific, Third Brigade, TrialStat, Tropic Networks, VirtenSys and ViXS Systems. For more information, please visit www.celtic-house.com.

About 4th Level Ventures:

4th Level Ventures is a €20 million Venture Capital Fund which was founded in 2002 by Dr Dennis Jennings and Ray Naughton. The fund is managed by Dolmen Securities. It is Ireland’s first venture capital fund exclusively dedicated to supporting high-potential start-up and early stage companies arising from research undertaken in third level institutions. For more information, please visit www.4lv.ie.

About Enterprise Equity Venture Capital Group:

EEVC Group is a national provider of venture capital to new and expanding companies throughout Ireland.  It has invested €50 million in over 70 companies to date.  EEVC invests equity capital in small, medium and larger well managed, innovative and growth orientated companies across a wide range of sectors including software, medical devices, food, biotech (diagnostics), and integrated circuit designers. For more information, please visit www.enterpriseequity.ie.