RICHARDSON, TX - Aug. 22, 2003 - Valere Power, an innovative provider of power infrastructure for the telecommunications industry, today announced JPMorgan Partners, the private equity arm of J.P. Morgan Chase & Co., has invested $6 million in the company's Series C financing round, increasing the total raised in this round to $17 million.

The company's third financing round was co-lead by JPMorgan Partners and existing investor Sierra Ventures. Sierra lead the raising of $11 million from existing investors Alcatel Ventures and Dali, Hook Partners that was announced on Feb. 25. The company has raised a total of $33.5 million in capital since its founding in 2001.

Valere will use the latest investment to fund its expansion into European and Asian markets and to introduce its products to enterprise markets.

"We have aggressively expanded our product line this year and have seen tremendous acceptance by our U.S. carrier customers. Now is the time to leverage that success overseas and with major enterprise OEMs," said Andy Marsh, president and CEO of Valere Power. "We welcome the validation of a strong investor like JPMorgan Partners, and continued support from our existing investors."

Chris Albinson, a principle at JPMorgan Partners and the head of communications infrastructure investment at the firm will join Valere's board of directors.

"JPMP is extremely pleased to be invested in Valere Power because the company's technology and passion is winning over customers and having a massive impact in the power systems industry. It is truly a pleasure to work with Andy Marsh and his team to grow their business," Albinson said.

"We welcome JPMP's investment and expertise because they will help the company to attract new partners and grow significantly, benefiting both its customers and all of its investors," said Jeff Drazen, general partner of Sierra Ventures.

Valere Power leverages its patented power conversion technology to develop a line of power systems that are 50% smaller and dissipate 35% less heat than competing products. To date the company has launched the Compact DC Power System and the Integrated Power System for telecommunications applications, including remote broadband, wireless and IP network installations.

Valere Power, headquartered in Richardson, TX, is an advanced AC/DC power system company with proprietary technologies that reduce power dissipation and system size, simplify installation, and offer advanced remote monitoring for telecommunications service providers and enterprises.

JPMorgan Partners (JPMP), formerly Chase Capital Partners, is a global partnership with approximately $23 billion under management (as of March 31, 2003). It is a leading provider of private equity and has closed over 1,000 individual transactions since its inception in 1984. JPMP has more than 150 investment professionals in eight offices throughout the world. JPMorgan Partners' primary limited partner is J.P. Morgan Chase & Co. (NYSE: JPM), one of the largest financial institutions in the United States. JPMorgan Partners portfolio investments include Seagate, Jet Blue Airways, Kinko's, Domino's Pizza, 1-800 Flowers, House of Blues, and Guitar Center. The Venture Capital Investment team operates out of San Francisco, CA and specializes in communications infrastructure, enterprise software, and life sciences/biotech. For additional information, please visit our website at www.jpmorganpartners.com.

Sierra Ventures, founded in 1982, is a privately held venture capital firm focused on investments in communications, enterprise software, software infrastructure hardware infrastructure and semiconductor and optical components. Sierra Ventures manages eight venture capital partnerships with more than $1.25 billion of capital under management. The firm's investments include StrataCom (STRM - acquired by Cisco), Teradata (TDAT - acquired by NCR), Centex (CNTX - acquired by MFS-Worldcom), Combinet (acquired by Cisco), ConvergeNet (acquired by Dell), Active Software (ACTV - acquired by WebMethods), FatBrain (FATB - acquired by Barnes and Noble), Healtheon/WebMD (HLTH), Interact Commerce (IACT - acquired by Sage), Intuit (INTU), Micromuse (MUSE), OnLink (acquired by Siebel), Quinta (acquired by Seagate), Terayon (TERN), Vina (VINA) and Vertel (VRTL). More information is available at www.sierraventures.com.

Alcatel Ventures is a privately held venture capital firm focused on investments in wireless, networking, optics, telecom equipment, integrated circuits, and software.

Dali, Hook Partners is a venture capital firm with a primary focus on early stage enterprise software, communications and semiconductor companies. We are committed not only to working with entrepreneurs, but also to providing them with our expertise in areas of relationships and operating experience. We have a history of co-investing with other top-tier venture firms, and our partners have more than 30 years of successful venture capital experience and have 60 years of distinguished operating backgrounds to assist early stage companies.

Dali, Hook Partners is a venture capital firm with offices in Menlo Park, California and Dallas, Texas dedicated to helping entrepreneurs create leading information technology companies of lasting value. We offer entrepreneurs a network of people and resources that provide strategic counsel and operating support from our team of seasoned professional managers and their firms who have been involved in the success of companies such as Apple Computer(NASDAQ:AAPL), Clarify (NYSE:NT)*, Cybermedia, Entegrity Solutions, Etec Systems (NASDAQ:AMAT)*, Harmonic (NASDAQ:HLIT), IC Works (NYSE:CY)*, NetSolve (NASDAQ:NTSL), Power Integrations (NASDAQ:POWI), Maxtor (NYSE:MXO), MediaVision, Octel Communications (NYSE:LU)*, Promatory Communications (NYSE:NT)*, Repeater Technologies (NASDAQ:RPTR), Serius, TriQuint Semiconductor (NASDAQ:TQNT) and Vitesse Semiconductor (NASDAQ:VTSS).

David Rodewald
The David James Agency
(805) 494-9508
david@davidjamesagency.com