Arcadian Networks Completes $90 Million First Round of Funding With Latest Investment From Goldman Sachs

Investment underscores the importance of providing rural wireless

connectivity to Utilities and Oil & Gas assets using the 700MHz Licensed

Spectrum



Apr 27, 2007, 01:00 ET from Arcadian Networks

    NEW YORK, April 27 /PRNewswire/ -- Arcadian Networks, Inc., a privately
 held wireless telecommunications carrier, today announced that it has
 raised an additional $30 million of financing from lead investor Goldman
 Sachs. With this closing, Arcadian Networks has raised a total of $90
 million in financing over the past twelve months.
     To date, Arcadian Networks is the first mission-critical, private
 sector communication carrier to deliver IP-based, wireless broadband field
 automation services, including substation, distribution, and mobile
 workforce automation, to key industries in rural America. Deployment of a
 real-world, approx. 56,000 square mile 700 MHz network has already begun in
 Minnesota with Great River Energy, a not-for-profit generation and
 transmission cooperative providing wholesale electric service to 28
 distribution co-ops that serve more than 600,000 members or about 1.7
 million people.
     The investment by Goldman Sachs underscores the importance of Arcadian
 Networks business model, including:
     -- The imperative for US electric, gas, oil, and coal energy producers to
        augment, update, and replace legacy communication systems with state
        of-the-art broadband, IP-based wireless communications systems and
        services to enable 'smart' initiatives (smart grid, smart field, etc.)
     -- The demand for secure, licensed, unencumbered radio spectrum will
        continue to grow as our Nation's critical infrastructure industries
        (electric, oil, gas & water utilities ) and first responders (police,
        fire and emergency medical professionals) seek to improve productivity,
        resilience, and response capabilities
     -- The need to enable interoperable communications, between the public and
        private sector, and provide a secure and robust communication backbone
        without taxing US citizens or derailing the impending  the 700MHz
        spectrum auction (estimated to generate $15 to $30 billion dollars of
        Federal revenue).
     -- The holders of existing 700MHz radio spectrum, with its extraordinary
        propagation, high power, and broadcast capabilities, are best
        positioned to provide a solution to our nation's critical
        infrastructure communication needs.
     -- The specification of US regulatory guidelines presently being proposed
        include sweeping improvements in the processes that govern energy
        production, surveillance and security of physical assets, and
        essentially mandate a secure, mission-critical ubiquitous broadband
        communication infrastructure.
     -- The private sector has proven that it is possible to create a scalable,
        resilient, and profitable communication backbone for our Nation's
        critical infrastructure industries without taxing US citizens.
        Arcadian's focus is to replicate this blueprint rather than continuing
        to propose future solutions which need to overcome multiple
        legislative, technical, and business challenges.
     -- Many market players will prefer voluntary adoption and enforcement of
        energy guidelines rather than legislative enforcement
     Alternative approaches have yet to deliver a demonstrable success of
 their "proposed" usage of 700MHz radio spectrum and have sought government
 subsidization of their efforts.
     Recent research from the US National Renewable Energy Laboratory and
 Lawrence Berkeley National Laboratory point out that the US current energy
 infrastructure isn't efficient, citing that sixty-two percent (62%) of the
 energy consumed in America today is lost through transmission and general
 inefficiency. This research validates the need for immediate action on
 energy efficiency initiatives that require a secure, reliable broadband
 communications network to connect mission-critical assets often located in
 remote areas of the country.
     "It's clear there is a tremendous need for a national debate and action
 plan regarding every aspect of energy: production, transmission,
 distribution, and consumption", said Gil Perez, president and chief
 executive officer, Arcadian Networks. "One aspect of energy policy that
 requires no debate is the need for better real-time information to make
 more informed decisions to improve the overall efficiency of the energy
 resources and power we consume. Over the past 18 months Arcadian Networks
 has taken the lead in laying out a vision for our nation's critical
 infrastructure communication needs. We have executed a practical, cost
 effective and robust strategy to build upon that vision. This is presently
 being deployed by GRE. With this latest round of financing in place from
 Goldman Sachs, we plan to accelerate and expand our network deployment and
 continue to set a course for a private sector solution to one of the most
 pressing communication problems facing our Nation's energy sector."
     About Arcadian Networks
     Arcadian Networks is a mission-critical telecommunications carrier
 providing the first private, secure wireless data communication network for
 utilities and other 'dispersed-asset' industries in a wide portion of the
 rural United States. Through its unique 700 MHz-based network, the company
 offers utilities such as electric, oil and gas, and water with a turnkey
 flexible high-speed broadband network allowing real-time monitoring and
 control of operations and management applications. Arcadian Networks
 provides the foundation for reliable, secure and efficient networking
 focused on operational, mission-critical assets and infrastructure. Based
 in New York, Arcadian Networks has secured funding from investors
 including: Goldman, Sachs and Co.; Gilo Ventures; and Clal Industries and
 Investments Ltd.
     For more information, please visit www.arcadiannetworks.com.
 
     All trade names are the property of their respective owners.
 
     CONTACT:
     Joseph Zarb / Lewis Goldberg
     Arcadian Networks/ KCSA Worldwide
     914-579-6300 / 212-896-1216
     joe.zarb@arcadiannetworks.com / lgoldberg@kcsa.com
 
 

SOURCE Arcadian Networks