Arbinet-thexchange Raises $41 Million; Brings Total
Equity Capital Raised in Past 8 Months to $75 Million
NEW YORK – June 13, 2000 – Arbinet-thexchange, Arbinet-thexchange, the leading online telecommunications
exchange, today announced that it has closed a $41 million round of private equity funding,
adding three new investors: Van Wagoner Capital Management, Amerindo Investment
Advisors, and Breakaway Capital (NASDAQ: BWAY). All investors in the company’ s prior
private equity rounds, including Internet Capital Group (NASDAQ: ICGE), ComVentures,
Bedrock Capital Partners, JP Morgan Investment Corp., Chase Capital Partners, and
BancBoston Ventures also participated in this placement, adding to their holdings. These
funds increase the total equity capital raised over the past 8 months by Arbinet-thexchange
to approximately $75 million.
“The $75 million we’ve raised in recent months provides ample capital for us to continue
executing our business plan and adding value for our current exchange members,” stated
Anthony L. Craig, Arbinet-thexchange Chairman and CEO. “The dynamic call routing
capability of our exchange gives on-demand profit making opportunities to our members by
finding best call routing. This can generate incremental revenues, lower buying and selling
costs, increase speed, and reduce credit risks.”
Arbinet-thexchange is an online, neutral, and anonymous exchange through which the
telecommunications industry can buy, sell, and physically deliver network capacity on
demand. Members of thexchange trade the use of minutes of telephony bandwidth.
“Arbinet-thexchange is the only online exchange with a solution for handling the end-to-end
trading, settlement and automated physical delivery process for telecommunications network
capacity,” stated Garrett Van Wagoner, President of Van Wagoner Capital Management. “The
economic imperatives to decrease costs and increase profitability in the international
telecommunications market are massive and we believe thexchange is ideally situated to be
the next generation service provider which leads the business process revolution in global
telecom.
“Breakaway Solutions has worked with Arbinet-thexchange on its business strategy, e-business
implementation, as well as application hosting, and we believe that Arbinet-thexchange
will be a leader in the telecommunications industry,” adds Gordon Brooks,
President and CEO of Breakaway Solutions, Inc., parent company of Breakaway Capital. “This
system is capable of processing large volumes of trading transactions and then dynamically
delivering telecom network capacity accurately and reliably.”
About Arbinet-thexchange
Arbinet-thexchange has created a full service online trading exchange through which the
telecommunications industry can buy, sell and physically deliver network capacity on
demand. This is expressed in minutes of available calling time for international and domestic
long-distance voice and fax calls. Thexchange is neutral, favoring neither buyers nor sellers,
and allows participants to trade anonymously. Automated delivery is accomplished by
employing advanced trading software and a set of patented processes to link the web-based
trading platform with a carrier-grade telecommunications switch. Arbinet-thexchange handles
all invoicing, collection and payment for trades effected on its exchange and provides
continuous monitoring and online rating of the service quality of each seller’ s network.
120 Albany St. Tower II, Suite 450, New Brunswick, NJ
08901
phone: 732-509-9100, fax: 732-509-9101, website: www.arbinet.com
