Security Broadband Corp. SECURES $45 MILLION SECOND ROUND
Major Cable Partners, Investors Encouraged by Technology Trial of Broadband Home Security Product
AUSTIN, Texas — April 30, 2001 — Austin, Texas-based Security Broadband Corp. announced today that it has received $45 million in additional funding. The latest round is a result of growing investor confidence in Security Broadband's broadband home security product and the success of the company’s ongoing technology trial. Funding will support the continued development of Security Broadband's technology and the preparation for a consumer product launch.
“The level of funding and caliber of investors speaks to the potential our product has in the market. Not only have we secured a significant amount of funding, we have done so at a time when investors have been hesitant to show this level of confidence in a young company,” said Security Broadband President and CEO William Glasgow. “The positive results we have received to date from the technology trial have reconfirmed to our investors and partners that they are investing in a winning strategy.”
Investors include Adelphia Communications (Nasdaq: ADLAC), Charter Communications (Nasdaq: CHTR), Comcast (Nasdaq: CMCSK, CMCSA), Cox Communications (NYSE: COX), Shaw Communications (NYSE: SJR), Cablevision Systems (NYSE: CVC), Rogers Communications (NYSE: RG), Catalyst Investors, Advance-Newhouse, Coditel, BMO Halyard Capital Fund, Greenspun Family, CIT, and Prime New Ventures.
“Adelphia is looking forward to testing the service as an up-sell to our existing security customer base. We have always believed security would be an addition to our bundle, and the technology has finally evolved to allow us to offer an interactive service,” said Tim Rigas, Executive Vice President, Adelphia Communications.
Security Broadband partner Cox Communications is assisting with the technology trial and is gauging the impact of this product on the industry.
“The results we have seen from the technology trial further indicate that Security Broadband's product should have a positive impact on the cable industry,” said Cox Director of Business Development Jeff Brown. “We recognize the potential consumer interest in this new service, and we’re attracted to how it can broaden our range of products and services.”
Investor confidence continues to grow as Security Broadband proves the functionality of its product.
“Catalyst Investors seeks out companies that have exceptional management teams and the potential to become a leader in their industry,” said Catalyst Investors Managing Partner Brian Rich. “We are encouraged by the results of Security Broadband's technology trial and believe that the timing is right for the company and this kind of product.”
Security Broadband's product leverages cable’s broadband capabilities to offer consumers an affordable home security system with real-time audio and video alarm verification, 24-hour monitoring and a Web site with remote system access features and security-focused content. The audio and video capabilities also give consumers access to their home when they are out of town or at work — providing family interaction and peace of mind in ways never before possible.
"In addition to being an attractive product for consumers," said Security Broadband Chairman Jerry Lindauer, "this product offers our cable partners the opportunity to use their established infrastructure to generate an incremental revenue stream that does not dilute current service offerings."
About Security Broadband: Security Broadband Corp. is creating the next generation of professionally monitored home security and lifestyle products. Through strategic partnerships with leading cable operators and other broadband service providers, Security Broadband will provide home security via the high-speed broadband network. By integrating always-on features, including audio and video capabilities, Web access and wireless capabilities, Security Broadband will offer consumers audio and video alarm verification, 24-hour monitoring capabilities and a Website with remote system access features and security-focused content. The service can reduce false alarms, improve police and emergency response, and increase users' peace of mind while they are away from home. Security Broadband was founded in June 1999 and is based in Austin, Texas. For more information visit http://www.securitybroadband.net.
In December 2000 Security Broadband announced partnerships with several of North America's largest cable operators. Combined, Security Broadband's cable partners pass more that 50 million homes in the United States, Canada, and Europe.
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